Ill Health Pensions

If you are too ill to work then you may be able to receive an ill health pension.

Most defined benefit schemes have ill health pension provision.

The rules of the scheme will set out the circumstances in which a pension can be paid.

Ill health pensions can usually be paid from any age as long as your medical condition meets the definition of ill health or incapacity set out in the rules. Sometimes a minimum number of years membership of the scheme is needed.

Medical evidence of incapacity/ill-health will be required and usually the Trustees will want proof that a condition is permanent.

Often the pension scheme rules will only allow an ill health pension to be paid if the member is not able to do any kind of work for any other employer.

However, some schemes will also pay 'Limited or Partial' ill-health pensions for those who cannot carry out their current job but could do lighter work for a different employer in future.

Ill health pensions are sometimes paid at an enhanced rate, taking account of the pension rights that you could have earned in future years. The rules will say when the Trustees have the power to enhance pensions in this way.

Often the company’s consent is needed as well as the Trustees agreement.

When deciding whether or not to pay an ill-health pension, the Company or the Trustees will often ask for a report from another medical adviser chosen by them. It is important that you co-operate with those medical enquiries.

If you are refused an ill health pension it is usually quite difficult to challenge the decision if the Trustees or Company have:

• adopted a fair procedure for obtaining medical reports on your condition
• followed the definition of ill health set out in scheme rules
• used their discretion fairly

Trustees can decide to prefer the opinion of one doctor against another as long as the weighing of the medical evidence in this way is done fairly.

If you condition can be improved by having an operation or undergoing a course of treatment your application may be refused.

The Trustees or the employer should let the member know the reasons for rejecting an application to allow the decision to be challenged if they have got their facts wrong. 

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.

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© 2003 (USDAW) Union of Shop, Distributive and Allied Workers
This page: http://www.usdaw.org.uk/pensions/resources/1149586779_20998.html
Last Modified: Thursday, 20-Dec-2007 04:10:52 EST
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