Questions regarding pension when you have left a company and can no longer work

swingaloo

The situation is that a friend of mine worked for a large company and paid into the pension scheme.

3 Years ago he had a work related accident and was no longer able to do his job so was retired on ill health grounds.

He is still 10 years of state pension age and is now living on benefits.

His questions are- Would he be able to draw the company pension now or does he have to wait till he is state pension age.

Or

As the accident was at work and he was not at fault would he have grounds for asking that his pension be paid up by the company until the date he would have retired had he been able to carry on working?

mania112

I'm no expert on injuries at work, but he will not be able to draw his company pension until at least age 55.

He should have had some sort of company insurance payout though, right?

mania112

swingaloo wrote: »

Would he be able to draw the company pension now or does he have to wait till he is state pension age.

State pension age is nothing to do with the company pension retirement age, even if they're the same age (!)

swingaloo

No, there is a court case ongoing as the company deny liability. Hes is just angry that his pension has been affected though and is quite bitter that he is no longer able to work.
Its because he has been retired by the company on health grounds and has to mamage on benefits now.

mania112

swingaloo wrote: »

No, there is a court case ongoing as the company deny liability. Hes is just angry that his pension has been affected though and is quite bitter that he is no longer able to work

Well whoever is defending him should be aware of this loss of pension contributions (along with loss of earnings)... i'm sure if the company are deemed to be liable the pension will also be compensated if his earnings are too.

But, no, he wouldnt be able to draw benefits from the pension before 55, and if it's Final Salary he 'shouldn't' consider transferring it away if the company don't allow early retirement (between 55-65) because the benefits are likely to be too great (and those benefits will be lost on transfer).

Debt_Free_Chick

swingaloo wrote: »

His questions are- Would he be able to draw the company pension now or does he have to wait till he is state pension age.

Depends on the rules of the pension scheme. Most do allow payment of a pension before age 55 on grounds of "ill-health" but the definition of ill-health - and the pension that would be paid - are specific to the rules of each individual scheme.

Or

As the accident was at work and he was not at fault would he have grounds for asking that his pension be paid up by the company until the date he would have retired had he been able to carry on working?

Again, it depends on the rules of the scheme, but the accident at work would not be a factor and I've never seen a scheme that pays out an enhanced pension related to an accident at work. See below

No, there is a court case ongoing as the company deny liability. Hes is just angry that his pension has been affected though and is quite bitter that he is no longer able to work.

If he wins his case, then I would expect any settlement to take account loss of future pension rights - make sure he has a good solicitor who is including loss of pension in his overall claim.

Debt_Free_Chick

swingaloo wrote: »

Hes is just angry ... and is quite bitter

Understandable - but only up to a point. Overindulgence in this kind of feeling though is like drinking poison yourself and expecting the other person (company) to die.

He is "where he is" - but where he goes is entirely up to him. He can wallow in it - or aim to make the best out of his circumstances. :beer: