occupational pension and PHI

russelluk

HI all


Hoping someone can help me with my problem I have here ?


I was working and paying into my works pension with the pension came a PHI scheme if I was sick are became disabled I would receive My PHI of 75% of my salary.


Now I was told that I would not go back to my normal duties so I was placed on permanent health insurance through my company's insurance.


My pension is a final salary but at the moment I am still on my previous salary from back in year 2000. Does this mean when I retire my final salary will be based on yaer 2000 ? Or do I receive pension on what I would have been able to get if I did not received PHI meaning what I may have earned in my retirement year or is it just based on my salary from 2000?


Hope I have been clear in my comments here


thanks


Russell

jem16

russelluk wrote: »

My pension is a final salary but at the moment I am still on my previous salary from back in year 2000. Does this mean when I retire my final salary will be based on yaer 2000 ? Or do I receive pension on what I would have been able to get if I did not received PHI meaning what I may have earned in my retirement year or is it just based on my salary from 2000?


Hope I have been clear in my comments here


thanks


Russell

As very scheme has its own set of rules set by the trustees, no-one can really answer your question. You would be best to check your scheme rules or ask the question directly to the pension scheme.

Your_Hero

russelluk wrote: »

HI all


Hoping someone can help me with my problem I have here ?


I was working and paying into my works pension with the pension came a PHI scheme if I was sick are became disabled I would receive My PHI of 75% of my salary.


Now I was told that I would not go back to my normal duties so I was placed on permanent health insurance through my company's insurance.


My pension is a final salary but at the moment I am still on my previous salary from back in year 2000. Does this mean when I retire my final salary will be based on yaer 2000 ? Or do I receive pension on what I would have been able to get if I did not received PHI meaning what I may have earned in my retirement year or is it just based on my salary from 2000?


Hope I have been clear in my comments here


thanks


Russell

The PHI is separate from your occupational pension scheme. It is likely that your pension will be based on your final salary with the firm, i.e. when you left them (or have you not?). If you left them in 2000, then your salary will be based on that, forget about the PHI.

russelluk

Hi thanks


I am still employed by the company but they don't actually pay me the company insurance pays my permanent health insurance. They pay my company and my company pay me.


I receive a wage slip every month from my employer and on that they have deducted tax NI also my pension payment.


Since this was a work related accident if they had sacked me then they would have prevented me from receiving PHI and then I would have a claim against them so I think that is the reason that they still employ me?


But my gripe really is because I had work related accident why should I be penalised in just receiving a pension that relates to my salary that I was receiving back in 2000. My final salary if I was still working would have been a greater amount at the time that I would retire in 14 years time.


Hope this all makes sense ?


Russell

Your_Hero

As you are still contributing to your pension then you are still part of the scheme, and building up your years of pensionable service. The final salary will then be based on your salary when you leave (not the 75% PHI).

jamesd

Like your scheme, mine will pay the pension contributions so you accrue more years of service or defined contribution contributions.

You aren't still on the payroll because they are worried about it being a work accident, that's just one of the ways that PHI can be set up to work.

You should get inflation-related increases but it's extremely unlikely that you'd get any increases for any career progression to higher paid jobs that you might have moved on to over time. Should be based on your last full time salary plus inflation.

Rather than asking here you should really ask the firm since they are the people who will know the exact rules for the particular PHI and pension schemes involved.

russelluk

Thank you all that had input here I am very happy for the advice that you have giving me.


I am today going to write to my employer just to clarify my situation, but on reading here I think maybe I have been worrying to much


Once again thank you for your help:T




Russell