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Deferred retirement pension

Rosie W
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Hoping someone will know this as it concerns the old state retirement pension and I don’t have access to any old handbooks etc as I’m wfh.

Client deferred taking their state pension for 12 years and is now about to claim it. They have claimed Pension Credit in the meantime. The question is whether either the increased pension or the lump sum if the decision is to take that instead, is affected by the Pension Credit paid over that period?

Paul_Treloar_AgeUK
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I’ve checked by 2015/16 CPAG and that says for periods on or after 11 April 2011, you won’t gain an increase in your State Pension for any period in which you were in receipt of Pension Credit (amongst other benefits). So it sounds like your client may have a mixed bag of pre-2011 increase but nothing since.

Rosie W
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That’s brilliant, thanks Paul.

Rosie W
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I’ve now ploughed through the DMG on this and it seems to say there is no entitlement to either an increase or a lump sum for any weeks in which the claimant was in receipt of SDA or, from 2011 as Paul says, Pension Credit.

Which is going to limit this client’s additional amount or lump sum significantly as he has been in receipt of PC the whole time.

[ Edited: 26 Nov 2020 at 01:56 pm by Rosie W ]
Gareth Morgan
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It’s simpler than the old system where the benefit was assessed using the notional value of the deferred pension.

Rosie W
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Gareth Morgan - 26 November 2020 03:06 PM

It’s simpler than the old system where the benefit was assessed using the notional value of the deferred pension.

Glad I didn’t have to look at the old system then! The way they calculate the Incs (DMG speak) or lump sum made me feel faintly nauseous as it was. But then I only got a 4 (old style) for maths O level.

bigbill
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I remember in the good old days before this 2011 change we seen dozens of local pensioners being contacted by MIG or PC and told to claim their old age pensions that they had failed to claim for many years some for 20+ years.

Most of these pensioners had been on IS, MIG or PC continually so had lost nothing by not claiming their old age pensions as they had a means tested benefit anyways.

Without a word of lie some were being paid their unclaimed old age pensions fully backdated some getting over £100,000+ and the rules at that time said any backdated deferred old age pension lump sum was disregarded in full as capital forever so happy days all round.

I remember one pensioner who got £80,000 backdated she was 92 and had been on means tested benefits throughout the backdated period, I was so annoyed that the DHSS at the time would allow this I raised it with my local MP at the time who contacted someone in Government who wrote back making excuses saying nothing was wrong with this system but I suspect they did not understand what I was saying, but very soon after it all changed from 2011 so someone did take notice.

I even posted on Rightsnet about this at the time but unable to find this post now.

 

Andyp5 Citizens Advice Bridport & District
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bigbill - 26 November 2020 04:51 PM

I remember in the good old days before this 2011 change we seen dozens of local pensioners being contacted by MIG or PC and told to claim their old age pensions that they had failed to claim for many years some for 20+ years.

Most of these pensioners had been on IS, MIG or PC continually so had lost nothing by not claiming their old age pensions as they had a means tested benefit anyways.

Without a word of lie some were being paid their unclaimed old age pensions fully backdated some getting over £100,000+ and the rules at that time said any backdated deferred old age pension lump sum was disregarded in full as capital forever so happy days all round.

I remember one pensioner who got £80,000 backdated she was 92 and had been on means tested benefits throughout the backdated period, I was so annoyed that the DHSS at the time would allow this I raised it with my local MP at the time who contacted someone in Government who wrote back making excuses saying nothing was wrong with this system but I suspect they did not understand what I was saying, but very soon after it all changed from 2011 so someone did take notice.

I even posted on Rightsnet about this at the time but unable to find this post now.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd;=&cad=rja&uact=8&ved=2ahUKEwj529-n1aPtAhW0D2MBHTpFAhwQFjAAegQIBxAC&url=https%3A%2F%2Fwww.rightsnet.org.uk%2Fforums%2Fviewreply%2F235%2F&usg=AOvVaw2VJhKGQNGvJC-lCj1Ug3Y_

bigbill
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Well done on finding that one Andy brings back memories.