pension and incapacity benefit - NI payable?

[stephsmith]

I have been ill for over 9 years, have recently been retired from my work on ill health grounds and will shorlty receive my occupational pension. I am currently in receipt of incapacity benefit and have been getting this since October 2002. I am 43. I was advised by my DWP office that I was also getting national insurance credits in conjunction with my incapacity benefit.

I have been given a lot of financial information about my pension, much of which I am unable to understand, but there is no information about tax and incapacity benefit and national insurance, so i am hoping you will be able to give me some answers to the questions I have about these issues. I am desperate for help because I have to take decisions very quicky about the amount of pension and lump sum I want to take but don't have enough information about things like tax and the impact of my pension on my incapacity benefit to help me to take these decisions. My illness makes it difficult for me to access sources of advice and help. perhaps you could provide answers to the following questions:

1. I know that there is a rule that says that if your weekly pension income is over £85.00 you will lose 50% of your income which exceeds that figure. Is that calculation based on a net weekly pension income or a gross weekly pension income figure? ie do they look at how much weekly income you have over £85.00 after it has been taxed or before?

2. Beyond what amount of pension income do you lose incapacity benefit altogether? (I will be entitled to a maximum of £8328.00 per annum, but can commute some of this into an additional lump sum)

3. Because I am in receipt of incapacity benefit will I continue to get national insurance credits, or will national insurance be deducted from my occupational pension and at what rate?

4. I have checked my pay slips and only just noticed that after I was in receipt of incapacity benefit, my employer continued to deduct NI contributions from my salary while it was in payment even though at that time I was receiving national insurance credits from DWP. Have I paid NI twice? can I claim back the NI which my employer was deducting and if so, how do I go about doing that?
Thanks in advance for any help on these questions

Steph