ESA overpayments

Hi, wondering if someone is able to shed a bit of light on a new area for me.

Client moved from IB to ESA (SG) in 2013. Has received a letter from DWP stating they have been overpaid for the duration of their ESA payments (December 2013 to March 2017) due to a failure to disclose their pension. Client made them aware of pension and has letters from DWP showing them included in breakdown of IB calculations.

I have seen reference to Schd 1 para 11 of The Employment and Support Allowance (Transitional Provisions, Housing Benefit and Council Tax Benefit) (Existing Awards) Regulations 2010 in CPAG which states that any pension amounts ignored before IB will continue to be ignored when moved to ESA.

I am unsure of circumstances where pension payments would be ‘ignored’ immediately before the transfer to ESA and when these regulations would apply?

Also as an additional question, if the transitional provisions do apply, do they apply indefinitely, or could a reassessment bring an individual outside of scope and subject to the ordinary ESA rules on pension payments?

Thanks

The relevant paragraph in the DMG is -

Pensions prior to conversion
45465 Certain pension payments or PPF periodic payments, described at DMG 44716 et seq, do not fall to be deducted from ESA(Cont). In addition any pension payment or PPF periodic payment is disregarded where
1. the claimant was entitled to IB immediately before conversion to ESA and
2. IB was not reduced by a pension or PPF payment because
  2.1 the claimant was entitled to DLA care component at the highest rate; or
  2.2 the claimant qualified for IB under the provisions for those incapacitated in youth because of previous entitlement to SDA; or
  2.3 the claimant was entitled to IB before 6.4.01 on any day of IfW in a PIW which began before and continues after that date.

The case I had recently involved his receiving highest rate care component of DLA, but there are two other options as you can see

Great, thank you!