ill health retirement

clock · Post by **clock** » 19 Apr 2016, 11:16

hi looking for some help here
I have 29 years service with Royal Mail and I am about to be ill health retired-I currently earn 24000 per annum and was wondering what I would get as a pension and lump sum. Due to my condition it is likely that I will be unable to seek other employment. I am a 54 year old single female and am worried about what I am entitled to. If I am classified as unfit for any form of work is there anything else I would be entitled to claim? I intend to apply for PIP due to my condition but was wondering what else I may be able to get.
Is there anybody out there that could calculate my entitlements ? I have asked people but nobody seems to be able to give me an answer-I am worried as somebody told me that management has an input into the final lump sum.
Thanks in anticipation

Post by **TrueBlueTerrier** » 19 Apr 2016, 17:34

http://www.royalmailchat.co.uk/communit ... 36&t=15538" onclick="window.open(this.href);return false; is the 2009 Ill Health Retirement Agreement

http://www.royalmailchat.co.uk/communit ... 15&t=15537" onclick="window.open(this.href);return false; is the LTB introducing it.

I HIGHLY recommend reading both so that you know what to expect, but to answer your question:

There are 2 types of IHR so make sure you know which type it will be.

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.

clock · Post by **clock** » 20 Apr 2016, 11:23

thanks for your reply-would there be someone who could tell me exactly what I am entitled to or anywhere I could find out-I have tried my local union rep and they were to come back to me but haven't as yet -I really want to know if I am entitled to a lump sum with pension and how much would both be. If you want you can PM me
cheers

Post by **TrueBlueTerrier** » 20 Apr 2016, 14:58

As far as I know the decision is made by Royal Mail, with input from OH Assist so you would probably need to speak to them to be certain either way whether you'll get an immediate pension or not.

The minimum payout you'll receive is 37 weeks pay and perhaps 9 weeks Pay in Lieu of Notice.

If you are entitled to an immediate pension I am afraid no one will know how much it will be as we don't have the full details of your contributions or what schemes you are in etc. Might be worth giving pensions and HR a call to get guidance.