Thu 02-Oct-08 11:15 AM by SandraC

Afternoon all.

I have a couple who (according to Local Pension source) had an AIP ending in Jan to coincide with his 65th birthday.
He received a lump sum instead of private pension (terminally ill) and this was not paid until February.
Couple was sent PC2 In July. Now received notification that no longer entitled to PC guarantee as savings giving them an income which takes them over
BUT...also in this letter states the new AIP is from 13th January.

Would I be right in thinking that if PC had reassessed the AIP at the right time he would not of had to declare the lump sum until the end of the new AIP (2013) and would still be getting PC (g)?

He had notified them he got the lump sum in March.

Im about to ask for reconsideration, just want to check im barking up the right tree!!!!

x X Sandra X x

Sandra

there's a bit I'm not too clear on - you said

"Now received notification that no longer entitled to PC guarantee as savings giving them an income which takes them over...."

I assume that the lump sum was invested in such a way as to produce a monthly income? I thought that if capital is treated as capital then the income derived from that capital is ignored - in other words they can't have two bites at the cherry...?

Have you actually done a benefits calculation on QB12 or similar ....?

Hi Mike

The pension was taken as a lump sum rather than a monthly income as he is terminally ill.

He has put this into a savings account, not a high interst one as needing to buy stuff wheelchair, stairlift etc.

So PC have treated it as savings and so a weekly tariff income as over £6k.

x X Sandra X x

ahhhhh...much clearer - I take it you've already got AA and Carer's premium in place....and that still keeps him outside of Pgc ?

Hi Mike

Yes! Wife has underlying entitlement to CA & (luckily!) he has DLA care & mob as he got this before his 65th birthday. They were going along quite happily with PC (g) until they suspended payment in June. Such a lovely couple and very worried about being overpaid.

x X Sandra X x