ER-X running v1.9.0 - IPSEC tunnel not passing traffic when using load-balance

I have an IPSEC tunnel between two routers which I can ping from the other site to the ER-X IP address (10.249.16.1) and get a reply but I can't get a reply from anything inside the network. If i run  tcpdump I can see the icmp traffic coming in but no replies. Also not able to ping from the ER-X to other site. 

I have load-balance configured for only one IP but I can't ping across the IPSEC tunnel from any address (even from the ER-X). Config at bottom

$ show load-balance watchdog
Group FAILOVER
  eth1
  status: Running
  failover-only mode
  pings: 145
  fails: 4
  run fails: 0/3
  route drops: 0
  ping gateway: 8.8.8.8 - REACHABLE

  pppoe0
  status: Running
  pings: 4326
  fails: 1
  run fails: 0/3
  route drops: 0
  ping gateway: 8.8.8.8 - REACHABLE

$ show load-balance status
Group FAILOVER
  interface   : pppoe0
  carrier     : up
  status      : active
  gateway     : pppoe0
  route table : 202
  weight      : 100%
  flows
      WAN Out : 7
      WAN In  : 30
    Local Out : 587

  interface   : eth1
  carrier     : up
  status      : failover
  gateway     : 192.168.250.254
  route table : 201
  weight      : 0%
  flows
      WAN Out : 0
      WAN In  : 0
    Local Out : 0

~$ show ip route
Codes: K - kernel, C - connected, S - static, R - RIP, B - BGP
       O - OSPF, IA - OSPF inter area
       N1 - OSPF NSSA external type 1, N2 - OSPF NSSA external type 2
       E1 - OSPF external type 1, E2 - OSPF external type 2
       > - selected route, * - FIB route, p - stale info
IP Route Table for VRF "default"
S    *> 0.0.0.0/0 [1/0] is directly connected, pppoe0
S       0.0.0.0/0 [210/0] via 192.168.250.254, eth1
C    *> 10.249.16.0/24 is directly connected, switch0.1
C    *> 10.249.17.0/24 is directly connected, switch0.11
C    *> 76.75.100.30/32 is directly connected, pppoe0
C    *> 76.75.103.36/32 is directly connected, pppoe0
C    *> 127.0.0.0/8 is directly connected, lo
C    *> 192.168.250.0/24 is directly connected, eth1