Most defined benefit schemes have ill health early retirement
provision.
Often the pension scheme rules will only allow a pension to be
paid if you are not able to do any job anywhere.
However, some schemes will pay a limited or partial
ill-health pension to those who cannot carry out their current job
but could, perhaps, work elsewhere in future.
Medical evidence of incapacity/ill health will be
required and usually the trustees will want proof that your
condition is permanent.
Often the company’s consent is needed as well as the
trustees.
When deciding whether or not to pay an ill-health pension, the
trustees will often ask for a report from another medical adviser
chosen by them.
Very often the payment of an ill health pension is entirely a
decision for the trustees and, unless they have clearly acted in an
unreasonable way in arriving at their decision, it is not usually
possible to challenge them.
As an alternative, some companies have arrangements with
insurance companies which are separate from the pension
scheme. These are often called Permanent Health Insurance
(PHI) schemes.
Access to Medical Reports Act 1988
Under the Access to Medical Reports Act, an employer, pension
scheme or insurance company may not apply to your doctor for a
medical report about you without first notifying you and informing
you of your rights under the Act.
You have a right to see the report before it is sent and no
charge may be made for this. If you want a photocopy of the
report, the charge must be reasonable. If you believe the
report is inaccurate or misleading, you can ask the doctor to amend
it. If he or she refuses, you can ask for a statement of your
views to be attached to the report.
The Act only applies to reports commissioned from a doctor who
is treating you and not to reports obtained from an independent
doctor or company doctor.
We advise members to use their right under the Act to
obtain a copy of medical reports.