Medical retirement, redundancy and income protection mess...

Tesha1

Hi

I was wondering if any of you clever people, have some advice or can point me in the right direction.

I've worked for the same company for 20 years, but due to poor health have spent the last 4 years on an income protection policy (policy paid for by both myself and my company through my wages). The policy pays out for a maximum of 5 years - during this time, I am still an employee for the company and receive a wage slip each month. I am part of their DB pension scheme, which has closed and so I am now a deferred member.

It was looking like I would wait until the 5 year policy was almost up and then apply for medical retirement (my consultant is in agreement I am not likely to work any job again). The income policy pays around 60% of my wage, which is much more than I would get on any benefits or a medial retirement pension; hence not applying already.

The company has now announced it is looking to reduce its workforce and the team I am in has been notified they are now at risk of redundancy. I have had no contact from my company for the past 2 years or so, so I am getting my information from other current employers. I am presuming I'm also at risk - I have asked the company to confirm this, but not received any feedback.

My question is can they make me redundant while I am on the income protection policy? If they can, am I able to apply for medical retirement while they are going through the redundancy consultation? The difference between and redundancy payment and taking my 25% tax free pension lump sum will be around £100k. I would also get a continuing pension of circa £30k a year if I medically retired.

Thanks for any advice.

Bobbobbobingalong

Check your staff handbook, or whatever you call it, very carefully. In all probability you will have been required to relinquish your role when you claimed against your policy and if that's the case you have no role to be made redundant from. In other words, when the plan ceases benefit you will either return to work (if they can accommodate you and you are fit enough to) or you will simply part ways.

Tesha1

Thank you for that. I didn't sign anything, my job still technically exists, I'm still recorded on organisation charts. Nothing in contract about the plan, as it was introduced as a benefit many years after I joined. Still waiting for HR to make contact… oh well, I suppose this will become a suck it and see scenario..