Ill health retirement

The Scheme offers protection to members who become too ill to work.

If you have to leave work at any age due to illness you may be able to have your pension paid immediately as long as you meet certain conditions.

What might my benefits be?

You may get your pension and any lump sum without any early retirement reductions, based on your current membership plus an enhancement as shown below.

How much enhancement depends on how likely you are to be able to carry out gainful employment in the future.

The different levels of benefit are:

  • Tier 1 - No prospect of gainful employment either in short term or before normal pension age
  • Tier 2 - No prospect of gainful employment in short term but prospect of gainful employment before normal pension age
  • Tier 3 - Prospect of gainful employment within three years of leaving

Example

If you reduced your hours due to your ill health immediately prior to your ill health retirement your enhancement can be based on your situation before the reduction of hours.

Tier 1 - No prospect of gainful employment either in short term or before normal pension age

Your pension will be based on your current membership plus an enhancement to replace what you would have built up to your normal pension age, if you had stayed in the Scheme until then.

Tier 2 - No prospect of gainful employment in short term but prospect of gainful employment before your normal pension age.

Your pension will be based on your current membership plus 25% of the enhancement to replace what you would have built up to your normal pension age, as if you had stayed in the Scheme until then.

Tier 3 - Prospect of gainful employment within three years of leaving

Your pension will be based on your current membership only.

Your pension will only be paid for a limited time, and will be reviewed after 18 months.

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