ill health retirement due to depression

ckra1000

For the last 5 years I have received an ill health pension due to depression and anxiety. The depression was caused by stress at work in relation to the security of my job. I was threatened with redundancy but managed to find myself an alternative role. I was out of my depth in the new role which was in a specialised field. This caused me great anxiety and I had a nervous breakdown.

The company granted me an ill health pension but with periodic medical reviews.

I have already had a couple of medical reviews which conclude that my depression is treatment resistant as I have tried a number of treatments. The reviews concluded that I am highly unlikely to work again ... but the periodic reviews just keep on coming.

I have learnt that a colleague and friend from the same organisation has been given an ill health pension for depression but without periodic reviews.

So I have appealed to the pension trustees to treat me the same. My depression and anxiety is sustained by the review process as I fear they will stop paying my pension. If they stopped the periodic reviews, my health would improve. However, the trustees have refused to cancel the periodic reviews on my pension, thus sustaining my illness.

Is this reasonable?

Aren't trustees supposed to act impartially i.e. treat everybody in the same situation in the same way?

What can I do?

FLAPJACK

It seems you are between a rock and a hard place really. As you say the review is to confirm that your health has not improved i.e it has stayed the same since the decision was taken that you cannot work any longer.

If however the reviews were not carried out and as you say there is a good chance that your health could improve as a result of not having this cloud over you.....if that happened and then you had a review the likelyhood is the result would confirm that indeed you have improved...thereby putting your pension at risk.

I think I would look at it as a good thing your health is being reviewed and is stable....at least this should put your mind at rest about the continued payment of your pension.

Good luck with your request though.

ckra1000

Hi Flapjack

Thanks for the quick reply and your good luck message.

The appeal to drop periodic reviews has already taken place and the trustees refused to drop the reviews in my case, despite dropping them for someone else in similar circumstances.

They also refuse to tell me how the 2 cases differ.

Who should I be speaking to for advice?

kidmugsy

ckra1000 wrote: »

They also refuse to tell me how the 2 cases differ.

You can't reasonably ask them to comment on someone else's medical condition.

Thrugelmir

ckra1000 wrote: »

They also refuse to tell me how the 2 cases differ.

Of course not. Bound by Data Protection legislation.

ckra1000

Ah yes ... the Data Protection Act issue makes sense. Thank you.

But I already know the details of the other case as he is a close friend.

After each medical review, they never tell me why reviews will continue, despite the medical reports clearly stating that I am unlikely to ever return to work.

Shouldn't the trustees be able to tell my why they wish to continue with periodic medical reviews for my case? I could then make my own mind up if this differs from my friends case.

FLAPJACK

Hi ckra 1000,

Lets imagine you decided that you wanted to retire early under your own steam, the pension you would be getting now as a result would be less that the ill health pension, this is because if you decide to retire early your pension payable is reduced as it is to be paid for longer.

However in your case:

In line with most Occupational Pensions if you are ill health retired early then your pension will be enhanced....as a rule it would pay you a pension now to the value it would heve been had you worked until you did full service with the firm, i.e reached the firms retirement age.

So the trustees have a duty towards the other scheme members to ensure that your state of health remains the same as it was when the firms Dr said you could no longer work.

As a result all ill health pensions are payable with the proviso that regular reviews are carried out. If in time a review flags up that you are a bit better then the pension maybe reduced or stopped.

Indeed some ill health pensions are awarded for a set period only maybe 3 years, after which (on medical evidence) it is expected that you will be fit enough to work.

So in your case the encourageing thing is that you were awarded a full enhanced pension for life at the outset....telling us that there is no expectation of you ever working again.

However the reviews are taking place as the pension scheme rules probably state that regular reviews are carried out, therefore it is almost a rubber stamping procedure.

Unfortunately depression is one of those things that cannot been seen, so again there is no reason the trustees cannot request a review...again because the scheme rules dictate that one is required.

If on the otherhand you had had a stroke which is obviously showing that you are unable to work then (as the reviews have to be paid for by the scheme) then probably there is no point in regular reviews as the condition isn't going to change.

So don't take it as a personal thing...it will be in the scheme rules.

In a way the situation you find yourself in is helping you....as yesterday you said that these reviews are adding to your depression (understandably too) so as a result a review isn't really going to show up anything different that the previous ones.

One angle you could try (which may put your mind a ease somewhat) is to ask the pension provider is there an age limit to these reviews. I know some schemes stop the reviews once you get to the firms retirement age. At least then you would know how long this would go on for.

All the best.

ckra1000

Wow. Many thanks Flapjack for spending time on this and providing a such full reply. You're points are somewhat comforting.

I guess it's a real catch-22.

If I overcome my depression/anxiety, I will lose my pension.

If I lose my pension, I will become depressed/anxious again.

FLAPJACK

I understand where you are coming from.....I think maybe you should look at your situation from a different angle....in other words:

I should imagin that overcoming your depression/anxiety is the major thing in life at the moment. If you do start to overcome these things then yes maybe a review would flag this up....it's at that point you need to know what would happen, would the pension be reduced or stopped, I would think the former not the latter.

So then you are in a position of having a smaller pension but this would give you the opportunity to get out there and maybe find a P/T job and taking your mind off the pension situation and start focussing on something else I say this because
I have been told that with a full ill health pension in payment the provider can check how much tax you have paid over a year to ensure that the tax paid matches the tax paid on the pension...obviously if it'more then they will know you have been working and can/will stop the pension pretty quickly.

But if they reduce your pension because your health has improved then they are telling you that you can work to some extent.

With depression like I said earlier it can't be seen... so I'm not that sure how a review could show any improvement.....so really I'm not sure this warrants the worry you are putting yourself through.

How long have you been getting the pension? and how often are the reviews?

All the best

ckra1000

I've had the pension since 2010.

I had an initial medical assessment at the start (2010).

The first medical review was after 2 years (2012) to see if condition was still there.

The next medical review period is 4 years, so 2016.

My normal pension is due in 2022

FLAPJACK

Thats encouraging news.....it looks as though the period of time before you reach the "offical firms pension age" is 12 years and they seem to reviewing you at 2,4 and maybe another at 4 and another at 2.

It's encouraging that after the first review though the period until the second was doubled...they could have made it 18 months or a year, so hopefully after the next review it will either be another 4 years plus another at 2 years taking you to 2022.

Not sure they would go the whole hog at 2016 and not review again during the 6 years until retirement age...but they might.

It's not looking bad OK??