Should a very sick person keep working - where does he get advice on options?

Marcon

xylophone said:

Is the friend a member of a Defined Benefit Pension Scheme?

If so, surely an early retirement pension (with the option of a lump sum) is an option?

I find it very worrying that this poor man (with no dependants) should be forcing himself to work (although in agony), just to keep the DIS grant.

Because according to OP, he wants his wife to get the 8x salary payment - and if he takes early retirement, that may mean he loses any such DIS payment (without knowing the terms of the policy, it's impossible to know).

greatkingrat

Many DB schemes pay out a lump sum death payment if you die within a few years of taking your pension, which may offset the loss of the DIS payment to some extent.

Marcon

greatkingrat said:

Many DB schemes pay out a lump sum death payment if you die within a few years of taking your pension, which may offset the loss of the DIS payment to some extent.

It's rarely greater than a 'five year guarantee' payment - tiny in relation to a DIS of 8x pay.

Sapientia

Difficult situation - I wish your friend well. Some good comments here, and I would say your friend should take the time to review the terms and conditions - even if it it is just to highlight in more detail the queries. Then use free sources to answer some perhaps easier aspects and finally it is worth paying a professional to answer final important specific questions that should not take too much time (and cost) to answer with some authority. 

NlghtOwl

Marcon said:

greatkingrat said:

Many DB schemes pay out a lump sum death payment if you die within a few years of taking your pension, which may offset the loss of the DIS payment to some extent.

It's rarely greater than a 'five year guarantee' payment - tiny in relation to a DIS of 8x pay.

You’re right of course but sounds like he’s going through hell trying to keep working and navigating sick leave. If he takes ill health and max tax free sum then spouse will get the cash and survivor pension. The peace may make up for the difference in £. Speaking from someone who lost their wife this year, after claiming early ill health less than 5 yrs ago. Wish him well whatever’s he chooses. 

Dulce-ridentem

Thanks everyone, for your sensible comments. My apologies for not responding sooner. - things moved on and I forgot this tread. My friend worked until a week before he went into a hospice, when he accepted early retirement; he died two weeks later.  He repeatedly told me he had checked the details so I never saw the paperwork myself. 

I was there to support his wife afterwards. She expects to get the full amount he thought he was due (700K) which tbh amazes me - its over 10x his salary. I still don't know if it has come through. 

He was over 30 years with the same company, it is possible he had a very good deal (from 1994). I've never seen anything like that for a junior employee, but he did well by his wife and I think that comforted him in the end. I miss him hugely. 

kimwp

Dulce-ridentem said:

Thanks everyone, for your sensible comments. My apologies for not responding sooner. - things moved on and I forgot this tread. My friend worked until a week before he went into a hospice, when he accepted early retirement; he died two weeks later.  He repeatedly told me he had checked the details so I never saw the paperwork myself. 

I was there to support his wife afterwards. She expects to get the full amount he thought he was due (700K) which tbh amazes me - its over 10x his salary. I still don't know if it has come through. 

He was over 30 years with the same company, it is possible he had a very good deal (from 1994). I've never seen anything like that for a junior employee, but he did well by his wife and I think that comforted him in the end. I miss him hugely. 

Sorry for your loss, you sound like a good friend and I'm sure he appreciated your support.

Cobbler_tone

Sorry to hear their news.
Hopefully a safe assumption that they are a good employer if he has been there for 30 years. If it is anything like mine there is no way they would terminate the contract of someone terminally ill if that ends up being the case. Although not indefinite sick pay. Ultimately DIS is covered by insurance.
They should definitely establish their position with senior management and HR, who are hopefully already being supportive. That said, if they survive for many years (which would be positive news) then the pension may be the only viable route.

Marcon

Cobbler_tone said:

Sorry to hear their news.
Hopefully a safe assumption that they are a good employer if he has been there for 30 years. If it is anything like mine there is no way they would terminate the contract of someone terminally ill if that ends up being the case. Although not indefinite sick pay. Ultimately DIS is covered by insurance.
They should definitely establish their position with senior management and HR, who are hopefully already being supportive. That said, if they survive for many years (which would be positive news) then the pension may be the only viable route.

Sadly not:

Dulce-ridentem said:

Thanks everyone, for your sensible comments. My apologies for not responding sooner. - things moved on and I forgot this tread. My friend worked until a week before he went into a hospice, when he accepted early retirement; he died two weeks later.  

Cobbler_tone

Marcon said:

Cobbler_tone said:

Sorry to hear their news.
Hopefully a safe assumption that they are a good employer if he has been there for 30 years. If it is anything like mine there is no way they would terminate the contract of someone terminally ill if that ends up being the case. Although not indefinite sick pay. Ultimately DIS is covered by insurance.
They should definitely establish their position with senior management and HR, who are hopefully already being supportive. That said, if they survive for many years (which would be positive news) then the pension may be the only viable route.

Sadly not:

Dulce-ridentem said:

Thanks everyone, for your sensible comments. My apologies for not responding sooner. - things moved on and I forgot this tread. My friend worked until a week before he went into a hospice, when he accepted early retirement; he died two weeks later.  

Apologies and condolences, I didn’t realise it was an old thread and missed that last reply.
It sounds as though his widow has the financial support she will need.
My closest experience is one of my
colleagues who we kept employed
through illness for just under a year before he passed away but such a difficult situation for all concerned.