Aggregation
Sections 6 to 10: Retirement provision
99.The social security system requires a claimant to notify benefits administrators of any changes that affect his benefit entitlement. In the case of Pension Credit, this would include any change in income that is taken into account when calculating the rate of Pension Credit. Sections 6 to 10 provide for certain types of income (a person’s “retirement provision”) to be treated as remaining the same for a period of up to five years (“the assessed income period”). This is subject to routine adjustment for inflation. The effect of this provision is that increases in income do not affect Pension Credit entitlement and therefore do not have to be reported by the claimant during that period. However this does not prevent an increase in the rate of Pension Credit where a person’s actual retirement provision is reduced.
100.A person's retirement provision is any income from a pension (other than one payable under the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992), an annuity or capital (see section 7(6)). Income from a particular source is referred to as an "element" of retirement provision.
