INTERACTION OF DWP BENEFITS [INCAPACITY BENEFIT] WITH POLICE IOD PENSIONS


QUASI DOUBLE TAXATION ISSUE.




There was a recent meeting in London with our legal representatives on the Interaction of DWP - Benefits [Incapacity Benefit] and Police IOD - Pensions - Quasi Double Taxation issue. Our legal team are prepared to take this issue to Judicial Review.


The main issue is with regard to the reduction of Police IOD pensions by the GROSS amount of Incapacity Benefit that is received instead of the NET amount after taxation. There are other relevant issues which will be explained to our members who seek further information from our South Wales representative.



Incapacity Benefit became a taxable benefit in April - 1995. Incapacity Benefit then became a 'means tested' benefit in April - 2001. If you were in receipt of more than £80 per week from an occupational pension scheme you were NOT entitled to claim Incapacity Benefit. There is in fact a sliding scale - but Police Pensioners still do not qualify to claim Incapacity Benefit as a result of the amount of Police Pension they receive - after April - 2001 that is. Which means there are specific group of Police Injury Pensioners who were medically retired with IOD - Pensions between April - 1995 and April - 2001 who were instructed by their Police Pension Scheme's that they MUST claim their DHSS / DWP Entitlements otherwise those Entitlements would be reduced / deducted from their Police IOD - Pensions - whether they claim those Entitlements or not - as a result of the insistence of their Police Pension Schemes - those who did claim Incapacity Benefit are as a result, between £70 and £80 per month worse off than those Police Injury Pensioners in parallel circumstances, who retired PRIOR to April - 1995 and those who retired AFTER April - 2001?


However, we are advised that this matter is generic and would affect many hundreds of Police Injury Pensioners nationally and therefore the view is that the Police Federation should be providing funding for the issue.


Our legal representatives would like to make approaches to the Police Federation for funding but before he can do that they would like to have at least 25 names of Police IOD pensioners who meet the criteria as outlined above. We feel that 10 or more can readily be obtained from IOD pensioners in one particular force who would be prepared to provide their details on a Police Federation C2 form and we would hope there are many more from the ADPO groups who would be prepared to sign the forms purely as a submission to the Police Federation as proof of figures involved.


The 6 year limitation will unfortunately apply and, as we understand it, the amount of underpayment to Police IOD pensioners could be anything from £2500 to £6000 - plus interest accrued - depending on their circumstances, dates of retirement, etc.


If the Police Federation will still not provide funding the conditional fee arrangements may be used anyway.


If any IOD pensioner fits the criteria above and would like either to put their name forward or to seek further information please contact the ADPO South Wales representative:  Wayne Evans. Email:  wayne.is@ntlworld.com


12th May 2012


Please note. Sufficient names have now been submitted and the matter has gone forward for consideration.


15th June 2012


Update 26th September 2013: Sufficient names were put forward and the issue was submitted to Counsel for an opinion. This issue is still being examined by the legal team and certain elements have been identified which require further consideration. We are delighted that the Police Federation are also now involved in this matter and are assisting with funding.