Dismissal on capability grounds Vs medical retirement

Witchtam

Hi,
Which of the above options are best?
I'm on long term sick and had my final meeting with work regarding dismissal on capability grounds in November - totally understand as my condition is not going to improve and they have been good at keeping my position open this long.
However, I raised the possibility of medical retirement. They have now informed me that I need to initiate with my pension company, but if I decide to go that route (and am accepted), they will terminate my contract on medical retirement grounds instead (no payout their end I believe).
I have only paid into my pension for a few years (i think 6 on full pay and a couple based on part pay), so as I do not understand how medical retirement works (if I qualify), would I be financially better off just to accept dismissal on capability grounds (11 years employment) or to go for medical retirement.
I hate talking finances as it seems so mercenary, but money is obviously very tight and I have no future earning ability.
Any experts out there? Advice gratefully received!

Another_not_new_user

The advice on this thread didn't cover this? - https://forums.moneysavingexpert.com/discussion/5176168=


Nobody here can tell you whether you would get medical retirement. Nobody can tell you which would be your best option. You need to speak to your pension provider. We can't know what the terms of your pension provider are.

Witchtam

I understand that, but after speaking to my HR department today, I just wondered whether generally, you're financially better off going for medical retirement or dismissal.
With my health problems, nobody seems to think there will be an issue in me receiving medical retirement from the pension company (obviously no definites yet), but before I go down that route, just want to know if it's worthwhile as my health really isn't up to more form filling etc, but obviously if it will be to my benefit in the long term, I can seek extra medication in the short term to get me through it - long term, not a possibility.

Poppie68

You would have to speak with your pension provider to find out what its worth and weigh the 2 figures up..

Tiddlywinks

Witchtam wrote: »

I understand that, but after speaking to my HR department today, I just wondered whether generally, you're financially better off going for medical retirement or dismissal.
With my health problems, nobody seems to think there will be an issue in me receiving medical retirement from the pension company (obviously no definites yet), but before I go down that route, just want to know if it's worthwhile as my health really isn't up to more form filling etc, but obviously if it will be to my benefit in the long term, I can seek extra medication in the short term to get me through it - long term, not a possibility.

Surely the forms are no more onerous than taking the time to type out your questions on here.

Your pension provider will be able to give you a forecast of your accrued benefits and the criteria they will use to decide your case. Just because people have told you that you'll have no issues with a claim, doesn't make it so.

With only six years contributions the pension is not likely to be as much as you might expect.

As to your employer, what makes you think that they are obliged to give you any payment if you are terminated on capability grounds? It's not redundancy.

Poppie68

I was wondering the same in regards to what payment the OP is expecting if being dismissed on capability grounds...I presumed maybe wrongly they are expecting a Compromise Agreement?

dori2o

Witchtam wrote: »

Hi,
Which of the above options are best?
I'm on long term sick and had my final meeting with work regarding dismissal on capability grounds in November - totally understand as my condition is not going to improve and they have been good at keeping my position open this long.
However, I raised the possibility of medical retirement. They have now informed me that I need to initiate with my pension company, but if I decide to go that route (and am accepted), they will terminate my contract on medical retirement grounds instead (no payout their end I believe).
I have only paid into my pension for a few years (i think 6 on full pay and a couple based on part pay), so as I do not understand how medical retirement works (if I qualify), would I be financially better off just to accept dismissal on capability grounds (11 years employment) or to go for medical retirement.
I hate talking finances as it seems so mercenary, but money is obviously very tight and I have no future earning ability.
Any experts out there? Advice gratefully received!

Is there absolutely no possibility of you returning to work at all? Would a return to work be possible of adjustments were made to your role/work area/working hours etc? Have you discussed the potential of returning to work with your GP

During the meetings you have had has your employer discussed the potential of any reasonable adjustments that could be made to get you back into work?

How long have you worked for the employer? What are the terms of your contract regarding notice, holidays etc?

If you are unable to move into further employment after this one ends then why does it matter which 'looks better'? Either way you will have been dismissed from work.

Financially, there is nothing you can decide on until you speak to the pension provider and get a forecast, which you can then compare to what you would receive from work in terms of notice/severance pay, accrued/unused holiday pay etc.

getmore4less

You need a pensions/benefits specialist to look at the bigger long term picture.