Ill-health early retirement

Transcription

1 Ill-health early retirement

2 The Pensions Advisory Service provides information and guidance to members of the public on pension matters generally. We also help to resolve disputes and complaints about private pension arrangements (company pensions, personal pensions and stakeholder pensions). Our service is free and is provided by a nationwide network of volunteer advisers who are supported by technical and administrative staff in London. All our advisers are pensions professionals with many years of experience in the pensions industry. The Pensions Advisory Service is an independent voluntary organisation that is grant-aided by the Department for Work and Pensions. Leaving employment as a result of ill-health is a distressing experience. This can be made worse if you think that you are entitled to an ill-health early retirement pension but you are not given one. This leaflet answers some common questions asked by those who may be about to leave their employment due to ill-health or disability. FREE IMPARTIAL ADVICE

3 I am ill and I have lost my job - can I get an ill-health pension from my company? Losing your job because of ill-health or disability does not mean that you are automatically entitled to an ill-health pension. For a start, your company may not run a pension scheme and, if it does, the scheme may not cover you. If your company does run a pension scheme which permits the payment of an ill-health pension, ask if the trustees of the scheme intend to pay you a pension in accordance with the scheme rules. If you are not satisfied with the answer, ask the trustees of the scheme for a copy of the rules on illhealth. You should not depend entirely on the pension scheme booklet or an explanation from your personnel or pensions department, as it is the rules of the pension scheme which will determine whether or not you are entitled to an illhealth pension. The rules may have more detail in them than the scheme booklet which is why it is important to check both. The rules may also tell you how you can make a claim. Sometimes companies have arrangements with insurance companies which are separate from the pension scheme. These are often called Permanent Health Insurance Schemes (PHI Schemes). You should check if your company has this kind of arrangement. If it does it would normally be the insurance company which decides on your benefit under the PHI Scheme. If they say that you do not qualify then usually no benefit would be payable. I could do another job but the company says there are no vacancies - can I get an ill-health pension? Often the pension scheme rules will only allow an ill-health pension to be paid if you are not able to do any job at all anywhere. If this is the case and you are able to do another job, you will not be entitled to such a pension, even though you are leaving due to ill-health. My GP says that I m not fit for work but I ve been refused an ill-health pension - is this right? Trustees do not usually accept the opinion of a GP alone in deciding whether or not to pay an ill-health pension. They will normally ask for a report from another medical adviser chosen by them. If the trustees require a specialist s report they may want you to see one of their choice, even if you are currently seeing a specialist. Often they will pay for this, but sometimes you will be asked to pay. Check the rules of the pension scheme to ensure that the trustees can require you to pay. The government has given me a disability benefit - surely this proves I am entitled to an ill-health pension? Not normally. The rules relating to state benefits are different from those which apply to a pension scheme. Your ill-health pension, if any, will depend on what the rules of your pension scheme say, not what a government department decides.

4 The rules say one thing and the booklet I was given says something different - which is right? The rules will normally take precedence over the booklet but this is a difficult issue and one on which you will probably need further advice. You should first write to the trustees asking them to clarify which is correct. If you do not get a satisfactory explanation, you can write to us at the address shown on the back of this leaflet. Enclose the rules, the booklet, a copy of your letter to the trustees and their response to your letter. The trustees have not done what the rules say they should - can I do anything? Yes, you can. You should write to the trustees pointing out where you think they have acted incorrectly. Ask them to reconsider your case. If you do not get a satisfactory response or explanation, you can contact us for further advice and help. The trustees say the decision is up to them - why don t they have to take what I say into account? Very often the payment of an ill-health pension is entirely a decision for the trustees. It will only be possible to challenge that decision if they have infringed one of the following principles: they must ask themselves the correct questions they must direct themselves correctly in law; in particular, they must adopt a correct construction of the pension scheme rules they must take account of all relevant but no irrelevant factors they must not arrive at a perverse decision i.e. a decision to which no reasonable body of trustees could arrive. If you think that the trustees have acted contrary to the above principles you should write pointing out where you think they have acted incorrectly. If you are not satisfied with their response, you should write to us with copies of all the correspondence involved. Sometimes it is not the trustees who have the discretion but the company. In this case similar procedures should be followed but you should write to the company instead of the trustees.

5 The trustees won t explain why my claim has been rejected We believe that trustees should provide you with a clear explanation as to which criteria you have failed to meet. We will write to the trustees and seek such an explanation for you. Where can I go for further advice? If you require any further advice after reading this leaflet you can contact us at the address on the back of this leaflet. You should always raise your problem with the trustees of your pension scheme or your company before approaching us.

6 We also publish the following information leaflets: Concerned about your pension?- Ask us for free independent information and guidance Getting information about your occupational pension Pension dispute procedure Personal pension problems? Where to go for help Transferring your pension to another scheme What are Additional Voluntary Contributions? Where is my pension? Winding-up a pension scheme - A guide for members Women and pensions - Know your pension rights and options These are available free from us at the address shown or on our website. These are the leaflets available at the time of printing and this list may be subject to change after that date. Contacting us The Pensions Advisory Service 11 Belgrave Road London SW1V 1RB Helpline General Office Fax enquiries@pensionsadvisoryservice.org.uk This leaflet is available in large print or Braille. Please note that this is a guide for information only. The Pensions Advisory Service cannot be held responsible in law for any opinion expressed, nor should any such opinion be regarded as grounds for legal action. April 2005 The Pensions Advisory Service Limited. Company limited by guarantee. Registered in England and Wales No Registered Office as shown.