Pension question regarding Illness Benefit

P

paul290603

Guest
First of all sorry if this is in the wrong section.

Hello, I was wondering if anyone could advise me of my situation.

I am currently on illness benefit for the last 5 years after having a tumour removed which left me disabled. I have now only found out that I have 6,OOO euro paid into a pension from when I was able to work and that I may be entitled to get it now.

My question is if I do take this lump sum will my illness benefit be affected ( because if so I would just leave it rather than more hassle ) and am I liable for tax.

Many thanks for any help I receive!!!
 
Illness Benefit is based on your PRSI contributions, so it wouldn't be affected by your lump sum payment.
 
thanks Gipimann a lot for your reply!!!!

So the state won't say you have 6 grand so live of that for the time being?

Many thanks and sorry if I am being stupid!!!
 
Hi Paul,

Depending on what grounds you are applying for access to your pension/refund of pension contributions, you may be liable for tax on it, but if this were the case it would probably be at the standard rate of tax, & it would more than likely be deducted at source before you got it. I'm not stating that this is the case, just that it might be. You should check with your former employer/pension provider & they should be able to advise you further on your exact situation.

If you have at least 260 (5 years) paid contributions since entering social insurance (since you first started working) you may want to explore the possibility of claiming Invalidity Pension , which, like Illness Benefit, is not a means tested payment.

The medical criteria is that you

-Have been incapable of work for at least 12 months and be likely to be incapable of work for at least another 12 months

or

-Be permanently incapable of work

The rate of IP is slightly higher than IB, & you would also qualify for a Free Travel Pass, & depending on your individual circumstances, you may also be entitled to the Household Benefits Package , so it's worth your while checking it out.
 
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