What if

I work past 62

Long-term sick leave

It is not something we like to think about but it is good to know how you would cope financially if you were unable to work due to ill-health.

What ill-health benefits are paid?

If you are unable to work temporarily you are entitled to sick pay. If you are a contributing member of the MP03 Section and you become permanently unable to work due to illness or injury, you may retire early and begin receiving your pension, regardless of your age. If you are a member of the AE Section, then no ill-health pension is payable.

You would need to provide medical evidence of your inability to work and you would usually need both the Trustee’s and your employer’s consent. Below, we set out the benefits payable and the process for applying for an ill-health pension.

How much is the ill-health pension?
The pension is calculated in accordance with the rules of the Plan. If you are a member of the MP03 Section and joined the Plan on or after 1 January 2003, the pension would normally be 50% of your pensionable salary at the date of your ill-health retirement. If you are a member of the AE Section of the Plan, then no ill-health pension is payable.

How do you apply for an ill-health pension?

The first step is to speak with your line manager about your health. They will explain the conditions of payment of an
ill-health pension and confirm the medical information that will need to be provided.

The payment of an ill-health pension will usually require your employer’s consent and the provision of an independent medical opinion. Once this information has been received and reviewed, a decision can be made by the Trustee and you will be told if you qualify for an ill-health pension.

What will my options be at retirement?
If you are allowed to retire early on grounds of ill-health, you will have the option of taking part of your pension as tax-free cash. The maximum cash available is usually worked out as broadly 25% of the total value of your pension and any additional voluntary contributions. However, if you choose this option, your pension will be reduced.

How long will the ill-health pension be paid for?
The ill-health pension will usually be paid for life. However, the Trustee may review your medical condition at any time before you reach age 62. If your condition improves, or you receive income from an alternative employment, your ill-health pension may be reduced or suspended.

What happens to my additional voluntary contributions (AVCs)?
If you have paid AVCs, these will be used to provide additional benefits for you. You may use your AVCs as part of your tax-free cash sum, or to buy an income (an annuity) from an insurance company.

Still have questions?
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