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Ill-health retirement
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Wessex
- EX ROYAL MAIL
- Posts: 1267
- Joined: 10 Jul 2007, 17:20
Ill-health retirement
Apologies if this has been discussed on the forums before, I couldnt find it using the search facility.Does anyone know what the scales are, i presume there are agreed payouts, for ill-health retirement where you are still able to work but RM cannot find a suitable vacancy for you with a medical condition ?
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fishtank
- Posts: 19732
- Joined: 28 Sep 2007, 17:22
- Gender: Male
Re: Ill-health retirement
4. DEFINITIONS OF ILL HEALTH RETIREMENT
4.1 “Retirement on ill health grounds with immediate pension” means the cessation of employment as a result of serious physical or mental ill health (not simply a decline in energy or ability) such that, in the opinion of Royal Mail Group or associated employer the member is permanently incapable of:
a) carrying out his current duties;
b) carrying out such other duties for the employer as the employer might reasonably expect the member to perform; and
c) engaging in employment with any other employer of a type which, in the opinion of his present employer, would be reasonable and appropriate for the member.
4.2 “Retirement on ill health grounds with lump sum payment” means the cessation of employment as a result of serious physical or mental ill health (not simply a decline in energy or ability) such that, in the opinion of Royal Mail Group or associated employer, the employee is, for the foreseeable future, incapable of:
a) carrying out his current duties;
b) carrying out such other duties for the employer as the employer might reasonably expect the member to perform
12. ILL HEALTH RETIREMENT BENEFITS
12.1. General References to ‘normal retirement age’ below mean ‘normal retirement age for pension purposes’.
12.2 Retirement on Ill Health Grounds with Immediate Pension
Active members of the Royal Mail Pension Plan with 5 years service or more and at least two years qualifying service in the Pension Plan meeting the criteria for retirement on ill-health grounds will have their pension based on their full benefits calculated up to their last day of service plus 75% of future pensionable service up to normal retirement age.
In addition, the 75% projection of prospective service will apply equally to the widow(er)’s and children’s pensions payable in the event of death in service of an employee in accordance with the provisions outlined above.
Alternatively for active members with more than 10 years’ service, if it gives higher benefits, the enhancement will be to 20 years’ service, or by an additional six and two thirds years or up to normal retirement age if earlier. For active members with between 5 and 10 years’ service, enhancement will be to double service or up to normal retirement age if sooner and if this gives higher benefits.
Members with over 2 but less than 5 years reckonable service will receive a pension based on their full benefits calculated up to their last day of service.
Employees must be active members of the Royal Mail Pension Plan (RMPP) to receive an immediate pension under these provisions. Where an employee meets the criteria for Medical Retirement due to permanent incapacity but is not a member of the RMPP, then they will be eligible to the benefits applicable for Retirement on Ill Health Grounds with Lump Sum Payment, or if eligible and more beneficial a benefit from the discretionary company insurance scheme.
12.3 Retirement on Ill Health Grounds with Lump Sum Payment
Where an employee has at least one year’s service and meets the criteria for retirement on ill health grounds with a lump sum compensation payment, a payment equivalent to 34 weeks’ pay will be made.
A deferred pension will also be payable to all pensionable employees.
12.7 Calculation and Payment of Lump Sum Payments
The pay to be used for calculating lump sum payments is the basic weekly or monthly wage/salary of the individual’s grade (i.e. the rate of pay that they would have been in receipt of but for sickness absence or leave purchase arrangements) on the date of retirement plus any personal reserved rights payment and geographical supplement (e.g. London/RRIS) where applicable. No other elements of ‘pay’ should be included. Confirmation of inclusive elements within basic pay is available from HR Services.
Employees who are ill health retired with a lump sum will receive the payments within seven days of the end of the notice period irrespective of any appeal that may be lodged, unless they opt to defer receipt pending an appeal. If they receive the money in advance of an appeal, they will be informed at the time of payment that they will be required to pay back the lump sum, in the event that the appeal is successful and they are subsequently re-employed or gain ill health retirement with immediate payment of pension.
12.8 Annual holidays and notice periods
12.8.1 In accordance with existing provisions Annual Holiday should be taken in the year which it is due. However, in the event that an individual is unable to take their holiday entitlement due to sickness it will carry forward to the following holiday year (subject to 12.8.4 below)
12.8.2 Individuals on long term sickness absence may, with appropriate notice, take any outstanding holiday entitlement that they have, and receive normal basic pay and assigned allowances for such days.
12.8.3 Contractual annual holidays cease to accrue once full and half rate sick pay has been exhausted. They are replaced by statutory leave entitlements.
12.8.4 Where ill health retirement is authorised, the notice period will be extended to cover pro-rata contractual pay due during the leave year plus up to 5 days’ carryover leave from the previous year if appropriate.
12.8.5 The arrangements outlined within this section take precedence over any other agreed arrangements for the taking of annual holiday.
The full agreement... http://www.royalmailchat.co.uk/communit ... TH#p239540" onclick="window.open(this.href);return false;
4.1 “Retirement on ill health grounds with immediate pension” means the cessation of employment as a result of serious physical or mental ill health (not simply a decline in energy or ability) such that, in the opinion of Royal Mail Group or associated employer the member is permanently incapable of:
a) carrying out his current duties;
b) carrying out such other duties for the employer as the employer might reasonably expect the member to perform; and
c) engaging in employment with any other employer of a type which, in the opinion of his present employer, would be reasonable and appropriate for the member.
4.2 “Retirement on ill health grounds with lump sum payment” means the cessation of employment as a result of serious physical or mental ill health (not simply a decline in energy or ability) such that, in the opinion of Royal Mail Group or associated employer, the employee is, for the foreseeable future, incapable of:
a) carrying out his current duties;
b) carrying out such other duties for the employer as the employer might reasonably expect the member to perform
12. ILL HEALTH RETIREMENT BENEFITS
12.1. General References to ‘normal retirement age’ below mean ‘normal retirement age for pension purposes’.
12.2 Retirement on Ill Health Grounds with Immediate Pension
Active members of the Royal Mail Pension Plan with 5 years service or more and at least two years qualifying service in the Pension Plan meeting the criteria for retirement on ill-health grounds will have their pension based on their full benefits calculated up to their last day of service plus 75% of future pensionable service up to normal retirement age.
In addition, the 75% projection of prospective service will apply equally to the widow(er)’s and children’s pensions payable in the event of death in service of an employee in accordance with the provisions outlined above.
Alternatively for active members with more than 10 years’ service, if it gives higher benefits, the enhancement will be to 20 years’ service, or by an additional six and two thirds years or up to normal retirement age if earlier. For active members with between 5 and 10 years’ service, enhancement will be to double service or up to normal retirement age if sooner and if this gives higher benefits.
Members with over 2 but less than 5 years reckonable service will receive a pension based on their full benefits calculated up to their last day of service.
Employees must be active members of the Royal Mail Pension Plan (RMPP) to receive an immediate pension under these provisions. Where an employee meets the criteria for Medical Retirement due to permanent incapacity but is not a member of the RMPP, then they will be eligible to the benefits applicable for Retirement on Ill Health Grounds with Lump Sum Payment, or if eligible and more beneficial a benefit from the discretionary company insurance scheme.
12.3 Retirement on Ill Health Grounds with Lump Sum Payment
Where an employee has at least one year’s service and meets the criteria for retirement on ill health grounds with a lump sum compensation payment, a payment equivalent to 34 weeks’ pay will be made.
A deferred pension will also be payable to all pensionable employees.
12.7 Calculation and Payment of Lump Sum Payments
The pay to be used for calculating lump sum payments is the basic weekly or monthly wage/salary of the individual’s grade (i.e. the rate of pay that they would have been in receipt of but for sickness absence or leave purchase arrangements) on the date of retirement plus any personal reserved rights payment and geographical supplement (e.g. London/RRIS) where applicable. No other elements of ‘pay’ should be included. Confirmation of inclusive elements within basic pay is available from HR Services.
Employees who are ill health retired with a lump sum will receive the payments within seven days of the end of the notice period irrespective of any appeal that may be lodged, unless they opt to defer receipt pending an appeal. If they receive the money in advance of an appeal, they will be informed at the time of payment that they will be required to pay back the lump sum, in the event that the appeal is successful and they are subsequently re-employed or gain ill health retirement with immediate payment of pension.
12.8 Annual holidays and notice periods
12.8.1 In accordance with existing provisions Annual Holiday should be taken in the year which it is due. However, in the event that an individual is unable to take their holiday entitlement due to sickness it will carry forward to the following holiday year (subject to 12.8.4 below)
12.8.2 Individuals on long term sickness absence may, with appropriate notice, take any outstanding holiday entitlement that they have, and receive normal basic pay and assigned allowances for such days.
12.8.3 Contractual annual holidays cease to accrue once full and half rate sick pay has been exhausted. They are replaced by statutory leave entitlements.
12.8.4 Where ill health retirement is authorised, the notice period will be extended to cover pro-rata contractual pay due during the leave year plus up to 5 days’ carryover leave from the previous year if appropriate.
12.8.5 The arrangements outlined within this section take precedence over any other agreed arrangements for the taking of annual holiday.
The full agreement... http://www.royalmailchat.co.uk/communit ... TH#p239540" onclick="window.open(this.href);return false;
good times, bad times you know I've had my share
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Wessex
- EX ROYAL MAIL
- Posts: 1267
- Joined: 10 Jul 2007, 17:20
Re: Ill-health retirement
So for me that means 34 weeks pay before tax pretty much.
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easter bunny
- Posts: 378
- Joined: 01 Jul 2007, 20:08
Re: Ill-health retirement
Wessex wrote:So for me that means 34 weeks pay before tax pretty much.
It depends on the circumstances on your IHR. 34 weeks plus Notice period and outstanding leave is one part of IHR - If your unlucky enough not to get immediate payment of your Pension...