Ill-health early retirement

What happens if I become unable to work?

If you become unable to work due to (physical or psychological) ill health or disability, you may be entitled to receive incapacity benefits, whatever your age, but only if the Trustee agrees. In deciding whether you are eligible for incapacity benefits, the Trustee will need to determine whether you fulfil the definition of ‘incapacity’ set down by HM Revenue and Customs (and set out in legislation). Further the Trustee will need to determine whether your future earning capacity is seriously impaired as a result of your incapacity. In order to make these determinations the Trustee will require medical evidence from a registered medical practitioner.

Your incapacity pension will be your full pension built up to 30 September 2007 (and increased by the percentage increase in the Retail Prices Index (subject to a maximum of 5% per year), for the period between the date you left Pensionable Service (or Service, as the case may be) and the date you take your pension) without a reduction for early payment. In respect of members who were in Pensionable Service in the Scheme when it closed on 30 September 2007, pension increases for the period between 30 September 2007 and 30 September 2010 will instead increase in line with any increases in their Salary if they remained in Service and if this would result in a higher increase.

The Trustee reviews incapacity pensions from time-to-time. The Trustee may ask for additional medical evidence of continued incapacity and the Trustee can vary or suspend the amount of any incapacity pension payments until age 60 if the Trustee is no longer satisfied that you continue to fulfil the definition of ‘incapacity’.