Are there any changes to other benefits – for example, State Incapacity Benefits?
When a UK claimant is no longer employed and being paid direct by Unum their state benefit entitlement will be affected as described below: The Welfare Reform Act 1999 provides that the amount of Incapacity Benefit an individual can get may be affected if they have pension income. Pension income includes personal pensions, occupational pensions, and group income protection insurance payments paid direct, such as this. The first £85 of the weekly gross amount of pension income is ignored. Gross amount means before any deductions are made for things like income tax. After that the amount of Incapacity Benefit is reduced by half the amount of pension. For example, with a pension income of £86 a week gross, the first £85 is ignored and the balance of the Incapacity Benefit is reduced by 50 pence a week (half of £1). The tax treatment of benefits may vary for other territories and countries and therefore it is recommended that the relevant parties take appropriate professional advice.
