Should I resign or be dissmised on ill health

linky

I have been off work for 5 years - very good company policy gives full pay for 6 months and half pay for 4.5 years. I am going to retire on ill health, this has been agreed by my employer following an occupational health assessment. At the recent meeting I thought that they would "do it all" for me, unfortunately it's not the case and I have to find and contact/claim from all my pension providers individually, have been with the same company for 30 years but the co have changed hands over the years hence the different pension providers.

Question is during the meeting they offered me two options, I could:
1 - resign and get 4 weeks notice pay
2 - be dismissed on the grounds of capability with 12 weeks pay

I asked what would be the benefit of resigning if I could get more pay by letting them dissmis me? Unfortunately no HR representation at the meeting, it's centralised and Team Leaders control the meeting. My TL is going to find out and let me know but anyone here have advice?

I won't be claiming benefits or looking for another job so neither being dismissed or resigning makes no difference, but will it effect the way my pension providers deal with my claim?

molerat

In a way being dismissed means your employer thinks you are incapable of doing your job, you could resign for any number of reasons. You need to contact your pension providers to find out what their definition of ill health retirement is especially if they are not linked to your current employer. How old are you ? You may find it difficult to access the pensions under 55 unless you are seriously ill.

https://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/ill-health-retirement

linky

Thanks,

I'm 55 in September but I understand that I would get a better pension if it's retirement on ill health, I don't have a terminal illness but won't recover and I won't be able to work again.

I'll need to call the pension providers, I just thought I would be "retired" by the company, never thought it would be this complicated!

Do you think they will all accept the medical report my company arranged from AXA, or will I need to go for an assessment for each one?

Dox

It's far from certain that pension schemes other than the one to which you currently belong as an 'active' member (i.e. one in which you are building up benefits) will give you 'better' terms because you want to access your pension on health grounds. If they are defined contribution schemes, it is unlikely in the extreme that you will get a better deal - and that applies to your current scheme.

If your previous schemes are defined benefit (final salary), you would need to check with the scheme(s) on an individual basis - but as you are now a 'deferred' member, you may not get preferential terms. They will be able to tell you what medical evidence is required if they do offer a better deal for ill health retirement.

Odd that your current employer isn't helping if you have 30 years employment with the same company. They should at least be able to give you a list of the relevant contacts, or try the Pension Tracing Service (which might be quicker!): https://www.gov.uk/find-pension-contact-details

The resignation/dismissal issue might affect any state benefits to which you could be entitled. Worth a word with https://www.turn2us.org.uk/. What is important is to check the type of pension scheme you are in now - if it is defined benefit, you need to apply for ill health early retirement before resigning/being dismissed. If it is defined contribution, check if the employer gives any sort of 'top up' for employees leaving on health grounds. Again, do so NOW.

jamesd

Ask the pension providers, their policies can differ significantly.

Your age and whether the pensions are defined benefit or defined contribution also matter.

ianthy

Your best option is for the company to end your employment due to ill health - do not resign. You can then contact the different pension schemes/providers and apply for your pension on ill health grounds - if your pension is reduced due to taking it at age 55, the Trustees may decide to waive or reduce the penalty due to your health. You will be required to undergo different assessments and the results and decision regarding your pension will then be taken by the pension trustees.

Brynsam

ianthy wrote: »

You can then contact the different pension schemes/providers and apply for your pension on ill health grounds - if your pension is reduced due to taking it at age 55, the Trustees may decide to waive or reduce the penalty due to your health. You will be required to undergo different assessments and the results and decision regarding your pension will then be taken by the pension trustees.

Only if these are trust-based defined benefit schemes where the rules of the individual scheme give the trustees and/or (former) employer discretion to enhance on grounds of ill health.

Defined contribution schemes don't work like that - and are normally contract based, so there are no trustees.