Pension reduced because of ill-health

dave623

Hi All,
Hope someone can advise me. I am about to take early ill-health retirement, I am only 36 years old but have a long standing health problem. I have fortunately been awarded the tier 1 total incapacity which is the highest benefit of the pension scheme as it is enhanced and based on my potential service to age 65. I have had a statement of my pension payments but they are significantly lower than last years statement. The reason i'm told, is because my future estimated pension contribution to my pensionable service is much lower this year as I had to reduce my hours due to my disability. I was also off work on sick when the contribution based figure was calculated. Therefore, the estimated pension earned from future pensionable service to the age of 65 is calculated at a point when I was on half pay due to me being placed on temporary half time hours which were due to an illness which is defined under the Disability Discrimination Act (DDA). My question is, shouldn't they estimate my pension contribution from before I went off sick? It's something like £4000 difference because I was off with a disability related illness. Am I being discriminated against or perhaps this is correct. I've spoken to the pension trustee department who confirm the lower figure, but they didn't know anything about the [FONT=&quot]‘non-discrimination’ rule that places trustees and pension fund managers under similar duties as employers not to treat you less favourably if you have a disability or serious health condition.
Does anyone have any views on this?
Many thanks in advance,
Dave.
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jamesd

What I suggest you do is some research on resources that will educate the employer and trustees about the issue, then provide those resources to them. that could be links to relevant documentation and codes of practice.

You can do more formal things but starting out by helping them is less confrontational and may resolve the problem.

dave623

Hi Jamesd
Thanks for your reply. I actually spoke to the Equality & Human Rights Commission today (they used to be the DDA apparently). They were very helpful. They did advise me that should a tribunal judge deem my illness a disability, then my company should make an effort to make reasonable adjustments. This could include taking into account my full time earnings prior to going half time. For example, if my last 2 years were half time, then my company could take into account my full time contributions prior to 2 years ago, then just add 1 year full time instead of the 2 years I was half time. This would be a reasonable adjustment. They of course are not obliged to do this, but they would have to have a reasonable excuse not to be able to implement the adjustment. I will be informing the trustees this week on this. Hopefully it wont get to the tribunal judge stage!
Thanks again.
Regards,
Dave.

BobQ

Dave,

You probably looked on their website too?

http://www.equalityhumanrights.com/advice-and-guidance/new-equality-act-guidance/equality-act-guidance-downloads/#Guidance_for_workers

There is a reference to the same information as you quote above in the guidance covering after leaving work (p62).

dave623

Hi BobQ,
Thanks for your reply. Yes, this is where I first found this info and had this to hand beforer ringing them. It's very similar to my situation, although my pension is a CARE pension and EHRC explain about a final salary but the principal is the same I would assume. Loading up my ammunition for sending off. My employers are actually very good and fair, although a reason they may use that they cannot make this reasonable adjustment is because it is unaffordable. I know my pension scheme isn't doing very well so hope this won't be an issue.
Kind Regards,
Dave.

BobQ

dave623 wrote: »

Hi BobQ,
Thanks for your reply. Yes, this is where I first found this info and had this to hand beforer ringing them. It's very similar to my situation, although my pension is a CARE pension and EHRC explain about a final salary but the principal is the same I would assume. Loading up my ammunition for sending off. My employers are actually very good and fair, although a reason they may use that they cannot make this reasonable adjustment is because it is unaffordable. I know my pension scheme isn't doing very well so hope this won't be an issue.
Kind Regards,
Dave.

I'm no expert but I do not think they can say its unaffordable. The contents of the fund are what they are. The Equality Act requires you to be treated fairly in relation to a non-disabled person. If they have problems the impact should be shared equally.