Early retirement due to ill health

daizythebulldog

Hi,

The company i worked for for over twenty years on a part time basis 20 hrs p/w has retired me early due to my ill health and am a little concerned over the pension figures they have issued me compared to the statement on my pension fund in 2007 and was wondering if anyone can shed some light on them for me.

Pension figures from the statement in 2007 were...£3396 pa

Actual figures due to early retirement(ill health) are...£2620.68 pa

Sorry to be a bit thick,but I was under the impression that under early retirement you would get your pension in full due to ill health as they could no longer employ me even there statement states that.........

The ill-health pension is calculted as the pension you would have earned if you had worked up to your normal retirement date,based on your final pensionable salary and contracted hours at the date you stop work.

Why is there such a large difference between the figures in 2007 and the actual ones they have give me.????????

Thanks for taking he time to read this.

mymatebob

Hopefully someone will be along who can better explain this, however I think it may be that the figures you were given in 2007 were based on you working until retirement age, whereas now you have got the actual figures, based on your salary and contributions to date.
Because you have retired on grounds of ill-health your pension has not been discounted in any way.

Not sure if that makes sense and as I say someone who is better at this may well come along and be able to explain it in plain English.

Andy_L

"The ill-health pension is calculted as the pension you would have earned if you had worked up to your normal retirement date,based on your final pensionable salary and contracted hours at the date you stop work"

That's a generous scheme, normally it's immediate payment of accrued pension with a few years extra, rather than assuming service to 60-65.

At a guess the 2007 quote may have assumed full time service till retirement age whilst the ill-health quote is based on your current part time status. Alternatively the scheme rules may have been changed since the last quote

cyclonebri1

I have just retired at 55 on ill health and received my full 65 age based pension because it was ill health retirement.

As said you need to recheck the figures that you were given in 2007 to see if they were current or future.

Also there has been a bit of a dip in the last 12months, but it depends very much if you were final salary or not, if you were the figure should not have gone down.

daizythebulldog

Andy_L wrote: »

At a guess the 2007 quote may have assumed full time service till retirement age whilst the ill-health quote is based on your current part time status. Alternatively the scheme rules may have been changed since the last quote

The 2007 qoute was assuming I worked upto my 61st birthday on a part time basis.

The trouble is i was employed by one bank and they were taken over by a much larger bank.:(

daizythebulldog

cyclonebri1 wrote: »

As said you need to recheck the figures that you were given in 2007 to see if they were current or future.

The 2007 pension projection was based on the same hours taking into account annual pay increases of 2.5% and RPI of 2.5%.

I'm only 47 and was forced to take retirement as they could no longer employ me because of the nature of the job and my health.

cyclonebri1

daizythebulldog wrote: »

The 2007 qoute was assuming I worked upto my 61st birthday on a part time basis.

The trouble is i was employed by one bank and they were taken over by a much larger bank.:(

Thers your answer then.;)

Andy_L

daizythebulldog wrote: »

The 2007 qoute was assuming I worked upto my 61st birthday on a part time basis.

It's quite possible then that they've just cocked up the quote.

cyclonebri1

Andy_L wrote: »

It's quite possible then that they've just cocked up the quote.

No, If you retire early on the terms I did and the op did, you get your pension at retirement date based on the benefits you have acrued up to that date but with no reduction due to retiring early, if that makes sense?

If you just retired early the benefit would be reduced for each year early.

What you don't get is any benefit for any years that you weren't able to work.

daizythebulldog

cyclonebri1 wrote: »

you get your pension at retirement date based on the benefits you have acrued up to that date but with no reduction due to retiring early, if that makes sense?


What you don't get is any benefit for any years that you weren't able to work.

Now the pennies dropped.as you cant have it both ways.....can you eh!!!;)

A Big Thank You to those that replied to my question.:beer: