Finishing work due to ill health

Roy58

Following a period of time off sick earlier this year, the Occupational Health doctor decided I was unfit to work in my current job which is a Maintenance worker for Network Rail. I have been on the railways since 1974. I have been at home on Full Pay since June 2010. They have attempted to redeploy me elsewhere in the company but this hasnt been possible, so I have now been given 3 months notice to terminate my contract under ill health. I am due to finish on 27/12/2010 unless I can find another post before that deadline.

My severance pay from Network Rail will be £38371. I understood that only any amount over £30K would be taxed as that it the case with Voluntary Severance. It has been suggested that the whole amount will be taxed and that because it spans 2 tax bands, most of it will be at 20% but a small amount will be at 40%. Can anyone advise on that please ? I'm not sure if the Severance payment includes any element of PILON (Payment in lieu of notice) or payment for unused Annual Leave as I am having to take my Annual Leave (32 days) during the next few weeks.

Torby

why not speak to your union rep and try to get them to retire youon ill health, hopefully on a pension and with a lump sum....usually ill health retirement means unable to do ANY job, but with the union on your side, you may be able to convince OH that if they can't find you a job in their firm (bearing in mind the serious number of job skills they have to offer) you won't be able to work in any field, it's worth a punt especially if your part of a final salary scheme.

Roy58

Hi THere......

My employer will finish me under ill health, and then I can apply to receive an ill health (Incapacity) pension from the company pension fund, but its not 100% guaranteed....... I know of other people in similar situations to mine who have finished under ill health and have successfully applied for ill health pensions.......there are a couple of forms to fill in and then the decision is made by the pension commitee....... if they refuse my application then at least I can take my pension benefits early...its slightly less than ill health pension but i could in theory look for a part time job to supplement my pension income........

Roy58

.......... basically, I have to prove that I'm incapable of doing ANY kind of work before the committee will grant an incapacity pension, but Occupational Health know my case, theyve got a file 5" thick so they know the health issues Ive had and still have........

mg23

this is on behalf of my dad , hi my dad had a stroke nearly a year ago now and is unable to work .he has just recieved a letter from his employer with notice of termination in may, i was wondering if he would be entitled to any redundancy pay he has worked there for 27 years, he works for a small private engineering firm

de1amo

OP i would buy avc's on your pension to make it up to 40 years!--i was medically retired and always wish i had investigated them--i got 29 years worth and the extra 11 would have made life just that bit more comfortable!!

Googlewhacker

mg23 wrote: »

this is on behalf of my dad , hi my dad had a stroke nearly a year ago now and is unable to work .he has just recieved a letter from his employer with notice of termination in may, i was wondering if he would be entitled to any redundancy pay he has worked there for 27 years, he works for a small private engineering firm

I wouldn't think so, the job is not redundant its just he is unable to complete his contract so is being dismissed on capability grounds rather than redundancy.

He should get notice pay and holiday pay which accrues even whilst sick.

Googlewhacker

de1amo wrote: »

OP i would buy avc's on your pension to make it up to 40 years!--i was medically retired and always wish i had investigated them--i got 29 years worth and the extra 11 would have made life just that bit more comfortable!!

Bit late considering the OP was 2010

nightingalesgarden

mg23 wrote: »

this is on behalf of my dad , hi my dad had a stroke nearly a year ago now and is unable to work .he has just recieved a letter from his employer with notice of termination in may, i was wondering if he would be entitled to any redundancy pay he has worked there for 27 years, he works for a small private engineering firm

Sorry to ask but is he too ill to return in any capacity? He would be covered by the Equality Act if he could return (over 1 year/long term illness)

Also does he have union representation? Has he been asked to any meetings to discuss the dismissal at work/home? When did he actually "see" a representative from his organisation.

What I'm looking for are opportunities to "ask" the employer if there is anything extra that they can do for him. They don't have to as it's not a redundancy situation but they might be able to do something.

A home visit by a manager/HR is usually a good time to bring it up - as it's an informal meeting then they can't really object to a family member being there asking questions on his behalf.

A letter outlining the loyal service and the situation by your Dad or a family member to the most senior manager/CEO of the firm has often been known to work.

philrich

my company who i works for wants to finish me up on ill health but i am only 42 years old. my health was ok last year untill i had a fall in work and done damage to my ribs and spine and now i have been told by my doc i got to have a full ankle fusion and can not work after that. i have been sick a lot of times because of my back and ankle. how much can my company pay me off on ill health. they have ask me to come up with a offer. i have been working for them over 2 years and i got a 5 year contract with them. can anyone help me please

FLAPJACK

de1amo wrote: »

OP i would buy avc's on your pension to make it up to 40 years!--i was medically retired and always wish i had investigated them--i got 29 years worth and the extra 11 would have made life just that bit more comfortable!!

I was pensioned off under ill health due to a stroke.

I though exactly the same ( I should have bought some AVCs) when I was told I was going....BUT the HR dept told me that an ill health pension is enhanced as to provide a pension eqivilent to 40 years service.

They said that infact had I bought AVCs then I would have been doing the scheme a favor as they would not have had to add so many years to my pension to get to the maximum of 40 years.

Not sure if all pension schemes do this though.