GLOSSARY

Ill-health early retirement definition

Published by a LexisNexis Pensions expert

What does Ill-health early retirement mean?

Ill-health early retirement takes place where a member retires on medical grounds before his normal pension date.

The benefit payable to the member in such circumstances may or may not exceed that payable on early retirement in other circumstances.

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Ill-health early retirement—decision making and exercise of discretion

THIS PRACTICE NOTE APPLIES TO REGISTERED OCCUPATIONAL PENSION SCHEMESThe scheme rulesThe ill-health early retirement provisions of trust-based occupational pension schemes commonly confer decision-making powers on their trustees or sponsoring employers, or both. In some cases, the decision making will be limited to deciding whether the ill-health test set out in the scheme rules is satisfied. In other cases, the ill-health provisions may have a discretionary element in terms of deciding whether to grant an ill-health pension to a member.The definitions and scope of the ill-health provisions will vary between schemes an issues may arise in interpreting those provisions properly. For further information, see Practice Note: Ill-health early retirement—Interpreting the scheme rules.The relevant decision maker must consider each application on a case-by-case basis.The ill-health ruleOn receipt of an application for ill-health early retirement, the decision maker must first consult the relevant provisions in the scheme's governing documentation. It is essential to ascertain who decides whether a member is granted ill-health early retirement benefits.To ensure that an ill-health pension from a registered scheme is an authorised payment, the decision to grant it will require:•evidence confirming that the medical condition prevents (and will continue to prevent) the member from doing his work, and•the member to have stopped working (due to ill-health/incapacity)For further information, see Practice Note:

Ill-health early retirement—interpreting the scheme rules

THIS PRACTICE NOTE RELATES TO REGISTERED OCCUPATIONAL PENSIONS SCHEMESAn important aspect of registered occupational pension schemes is their ability to provide ill-health (sometimes referred to as 'incapacity') benefits. Such benefits are particularly important in circumstances where members are obliged to retire from employment prior to their normal pension date (NPD) due to serious illness.This Practice Note covers the various issues that may arise when interpreting scheme rules of a registered occupational pension scheme for the purpose of determining whether ill-health benefits should be granted to a member. For further information on the considerations relevant to trustees of occupational pension schemes and/or employers required to make decisions in relation to members’ ill-health early retirement requests, see Practice Note: Ill-health early retirement—decision-making and exercise of discretion.Nature of ill-health early retirement benefitsIll-health early retirement benefits are calculated in accordance with the scheme rules. Those provided by defined benefit occupational pension schemes are frequently (but not invariably) more generous than 'normal' early retirement benefits.For example, ill-health early retirement pensions provided by defined benefit occupational pension schemes are often paid without actuarial reduction factors being applied to compensate for the fact that such pensions are being paid prior to NPD (and therefore for a longer period than usual). Also, in some cases, prospective pensionable service (from the date of leaving actual pensionable service

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Medical report during employment (employee’s doctor)—employee consent form

Medical report during employment (employee’s doctor)—employee consent form Date: [insert date] Employee name: [insert name] Employee date of birth [insert date of birth] Employee address: [insert address] Employer name: [insert name] Private and confidential To: [insert name of doctor] I understand that my employer wishes to obtain a medical report from you in order to: • [assess my fitness for and likely return to work; • establish if there is any underlying health reason for my frequent absences from work; • plan the work in my department, and assess the impact of my absence from or resumption of duties on workflow and resources; • assess the effect of my condition on my day-to-day activities; • consider the range of reasonable adjustments my employer may need to make; • consider any short-term measures my employer can put in place for a phased return to work; • administer [SSP AND/OR Company sick pay]; • determine whether I am eligible for [benefits under my employer’s permanent health insurance scheme AND/OR ill-health early

Medical report during employment (employer’s doctor)—employee consent form

Medical report during employment (employer’s doctor)—employee consent form Date: [insert date] Employee name: [insert name] Employee date of birth [insert date of birth] Employee address: [insert address] Employer name: [insert name] Private and confidential To: [insert name of doctor] I understand that you are [an occupational health professional OR doctor] [employed by OR wholly independent of] my employer. I confirm that I am not and never have been a patient of yours or under your clinical care. I understand that my employer wishes to obtain a medical report from you in order to: • [assess my fitness for and likely return to work; • establish if there is any underlying health reason for my frequent absences from work; • plan the work in my department, and assess the impact of my absence from or resumption of duties on workflow and resources; • assess the effect of my condition on my day-to-day activities; • consider the range of reasonable adjustments my employer may need to make; • consider any short-term measures my employer can put in place for a phased return to work; • administer [SSP AND/OR Company sick pay]; • determine whether I am eligible for [benefits under my employer’s permanent health insurance

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What claims, if any, can an employee bring in the employment tribunal in respect of an employer's failure to exercise its powers to consider ill-health early retirement under a pension scheme?

What claims, if any, can an employee bring in the employment tribunal in respect of an employer's failure to exercise its powers to consider ill-health early retirement under a pension scheme? Possible claims against employer in respect of ill-health early retirement Possible claims against an employer in respect of ill-health early retirement may include: • breach of contract: • an employer is under a contractual duty to act in good faith as regards the possibility of early retirement under its pension scheme if it has one offering such an option. The duty means that the employer should take medical advice and form an opinion as to whether the particular employee meets the conditions for early retirement due to ill-health • the employer is also obliged under the duty of implied trust and confidence to exercise its powers to consider early retirement due to ill-health • unfair dismissal: consideration of the possibility of an ill-health early retirement before dismissing is relevant to the overall fairness of a dismissal • claims under the Equality Act 2010 (EqA 2010): consideration should be given to whether the employee has a disability under EqA 2010, s 6, and the risk of claims for discrimination or other prohibited conduct For further information, see: • Practice Note: Dealing with long-term or chronic sickness in particular sections: Consider early retirement under any pension scheme and Consider disability issues • News Analysis: Ill health

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Employment weekly highlights—4 February 2021

This edition of Employment weekly highlights includes: (1) publication of a list of all the employers who claimed under the Coronavirus Job Retention Scheme (CJRS) in December 2020, (2) updates to CJRS guidance on employee's usual hours and furloughed hours, (3) updates to HMRC’s collection of Self-Employment Income Support Scheme guidance, (4) a letter from the Work and Pensions Committee regarding concerns for safety in the workplace amid coronavirus, (5) guidance from the Department for Education on apprentices, employers, training providers and assessment organisations, (6) various coronavirus health protection amendment regulations relating to restrictions and international travel, (7) guidance from HMRC detailing rates and thresholds for employers operating a payroll, (8) new legislation setting the income limits and allowances that will have effect for the tax year 2021-22, (9) new legislation on the taxation of coronavirus support payments, (10) a Court of Appeal judgment on an employment tribunal’s discretion to extend a time limit in a discrimination case, (11) an EAT decision on founding a victimisation claim on an allegation that an act ‘may be discriminatory’, (12) the publication by the Social Mobility Commission of its Annual Review and Business Plan 2020, (13) a call from the EU Parliament for a new law allowing employees to disconnect from work, (14) new guidance published on the Hong Kong British National (Overseas) route, (15) the weekly operational summary from Her Majesty’s Courts & Tribunals Service, (16) updated coronavirus-related trackers, (17) dates for your diary, (18) updates to our case, legislation and consultation trackers, and (19) new Q&As.

In-House weekly highlights—4 February 2021

Welcome to this week’s edition of the In-house weekly highlights, a curated summary of news analysis and new content from across the legal landscape. These highlights focus on key risk & compliance, commercial, corporate, information law and employment developments that will be relevant to most in-house lawyers.

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112 Death in service benefits: benefits for spouses, civil partners and dependants

112 Death in service benefits: benefits for spouses, civil partners and dependantsPension schemes may provide death in service benefits, in other words benefits that are paid to certain people if a member of an occupational pension scheme dies, including any or all of the following:112.1 a lump sum;112.2 a return of a member’s own contributions to the scheme;112.3 a pension for a surviving spouse or civil partner and any other dependants1.To avoid inheritance tax liability, the pension scheme normally allows the trustees to exercise their discretion with regard to the beneficiary or beneficiaries

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