Ill Health Retirement

Post by **Sugar** » 27 Sep 2019, 18:29

A few Q's on IHR

Is it still £19000 and if it is is that before or after deductions?

Once you get paid out can you then go and sign on till you get another job or does the amount you get mean you can't claim any benefits?

With the lump sum you get for IHR are you allowed to pay off any outstanding bills and debts without it affecting any possible benefits you may be able to claim for?

Post by **celtic1967** » 27 Sep 2019, 19:32

I went through it recently. You will get a letter detailing what your lump sum and PILON amount is. You pay tax at your normal rate on the PILON only, lump sum is tax free.
Cant comment on the benefit side of things as I dont intend claiming any.
The letter with the figures is the letter you sign accepting IHR.
A few days after leaving I received my P45 in the post along with another form which I think you show to Job Centre which details the terms under which you left.

rhia · Post by **rhia** » 27 Sep 2019, 21:34

They told me at job centre i would get £78 because of my national contributions but was reduced because of my rm pension.You have to keep putting in sick line or look for work.I didn’t bother as it was only going to be £15 a week , I had all my national contributions paid up till i get state pension so it will depend if you have,They will pay yours if you sign on and actively look for work

Post by **Sugar** » 28 Sep 2019, 08:58

Thanks for those replies.

I'm too young to claim either of my pensions so looking for other work is a must or claiming benefits till another job comes up. Done 21 years at rm so hope the lump sum is enough because if it is I could have enough to clear mortgage but worried doing that may not be within the rules and hinder any benefits I could get. I know at one time you were only allowed £6000 in savings before it caused issues.

rhia · Post by **rhia** » 28 Sep 2019, 15:25

Your lump sum shouldn’t count,the money they pay you is contribution based so as long as you look
for work or handing in sick line you should get it for a year either way. Good luck

Post by **Sugar** » 28 Sep 2019, 16:05

rhia wrote:Your lump sum shouldn’t count,the money they pay you is contribution based so as long as you look
for work or handing in sick line you should get it for a year either way. Good luck

Brilliant, thanks.

Post by **holly123** » 28 Sep 2019, 19:25

It won't effect benefits, I took it and got around 25k with shares, I went to the job centre and applied for employment support benefit as I wanted to be a self employed tiler as I started training for this before leaving , you get around £300 a month for 12 month to help set yourself up, 3yrs now , only visit this site as Im still in contact with loads from my old office and give advice were I can, best of luck

Post by **aiden01** » 28 Sep 2019, 20:04

holly123 wrote:It won't effect benefits, I took it and got around 25k with shares, I went to the job centre and applied for employment support benefit as I wanted to be a self employed tiler as I started training for this before leaving , you get around £300 a month for 12 month to help set yourself up, 3yrs now , only visit this site as Im still in contact with loads from my old office and give advice were I can, best of luck

How much was your actual ihr.. without shares as 3 years ago they probably at least 2 thirds worth more than they are now..

Post by **holly123** » 29 Sep 2019, 09:05

Around £21500 as I had 12 week pilion

Post by **Navalron** » 29 Sep 2019, 11:26

Once you get IHR you are entitled to employment support allowance (sickness benefit) and probably personal independence payment (PIP). No matter what, for the first 54 weeks you are entitled to contribution benefits in your own right, no matter if your partner is working. After the year if you stay in the support group the benefits carry on and if you go into the work related activity group your payments depend on your household income. We are really struggling just now as some staff have been seconded to pre Brexit posts. And the adviser who told the other poster about the pension lowering his benefits was wrong. After a year it might. Maybe that's because the DWP don't train their new staff like they used to and most are on temporary contracts and part time. Exactly like RM and all other employers. A race to the bottom in terms of wages, pensions and everything to do with decency.

Post by **Sugar** » 29 Sep 2019, 11:57

Again thanks for the additional information.

Some of that has alleviated my concerns.

Just wait and see now if they offer and I accept.

k979aaa · Post by **k979aaa** » 29 Sep 2019, 21:38

Well the way I see it is can you do any job even desk job is better than no job and don't feel bad about your condition that made you not able to do your job this will happen to all in time. As you say about job seekers allowance but some areas have Universal Credit it is a big unknown you could google all this online yourself. But all I can say is good luck and all the best and life will go on beyond Royal Mail.

readingpete · Post by **readingpete** » 30 Sep 2019, 20:10

Please excuse my ignorance people, but what is PILON?

Post by **holly123** » 30 Sep 2019, 20:15

Pay in lieu of notice , I think

readingpete · Post by **readingpete** » 30 Sep 2019, 21:26

Thank you.