Mr. HookTo ask the Secretary of State for Work and Pensions for what reason service invalid pensions are classed as occupational pensions when deciding the benefit entitlement from incapacity benefit; and when this rule was introduced. [53311]
§ Mr. Nicholas BrownWe introduced changes to the treatment of occupational pensions in incapacity benefit in April 2001. We believe it is right to take account of pensions which duplicate the purpose of incapacity benefit, which is to provide some replacement of earnings for people of working age. Benefit is reduced by 50 per cent. of pension income in excess of £85 a week.
Pension income includes occupational pensions paid on cessation of employment. Armed forces service pensions paid on cessation of service are occupational pensions and are treated in the same way as other occupational pensions.