NHS Pension Scheme Ill Health Retirement - A Quick Guide

Unfortunately, becoming ill is a fact of life but the NHS Pension Scheme offers excellent benefits for those unfortunate enough to become long-term sick.

If you are unable to do your own job through sickness, and your condition is considered permanent - then you should be able to take your ill-health retirement pension. This is broadly your accrued NHS Pension rights taken unreduced and is known as a Tier One Ill Health Pension.

In addition to above, if you are ill enough to not be able to do any work at all of like duration to your current role - then you should be able to take the unreduced ill-health pension as above PLUS an enhancement for your prospective membership to your normal pension age. This is known as Tier Two Ill Health Pension. In the 1995 Section of the NHS Pension Scheme the enhancement is 2/3rds of your prospective membership up to the age of 60. If you qualify for Tier Two after 55 you would get 4 years prospective membership and then 3 years at 57 and so on.

For those doctors who took out private income protection policies and are now within 10-15 years of their normal retirement age - please review the small print. Many income protection policies will reduce the pay-out by any NHS ill-health retirement pension. And so you may be paying for something that you will not ever benefit from.

If you are an active member of the NHS Pension Scheme, in order to apply for your Ill Health Retirement Pension, please contact your employer for an application form. It would be adviseable to enclose as much supporting information as possible about your condition.

If you are a deferred member of the NHS Pension Scheme, you need to apply to NHS Pensions for your Ill Health Pension using form AW240. This application will then be assessed by the NHS medical examiners.

Conditions Required For Ill-Health Retirement

- You need at least 2 years qualifying membership in the NHS Pension Scheme

- You need to have retired from NHS employment through sickness (this has to be sickness not for any other reason)

- You need to be permanently incapable of carrying out your duties due to sickness (Tier One). Therefore the medical examiner must come to the conclusion that on the balance of probabilities you will not be able to return to work before your normal pension age.

- You need to be permanently incapable of carrying out any regular employment of like duration due to sickness (Tier Two). Therefore the medical examiner must come to the conclusion that on the balance of probabilities you will not be able to return to work before your normal pension age.

- You must also be under your normal pension age

There are time limits in applying for your Ill Health Pension benefits. Once your employer has formally signed you off as retired through ill-health then you have 12 months to apply for your benefits.

For doctors with Added Years contracts on ill health retirement you will be credited with your full intended contract.

Returning To Work After Ill Health Retirement

If you return to NHS employment after having previously retired through ill-health there will be limits on the amount you can earn. In some cases your ill health NHS pension maybe capped - this is known as abatement. Once you reach your Normal Pension Age then abatement will cease.

If you return to work with a non-NHS employer then your NHS ill-health pension will not be affected - abatement will not apply.

Terminal Illness Benefits

In addition to the application requirements stated above, you need to provide medical evidence that you have a life expectancy of under 12 months. If you are an active member of the NHS Pension Scheme you need to complete form AW341 (a).

The terminal illness benefits payable would then be a Tier Two Pension converted into a lump sum payment. The lump sum is calculated by commuting your NHS Pension. at the rate of £1 for every £12 of lump sum until HMRC caps are met and thereafter £1 for every £5 of lump sum.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

More News
Can doctors trust the rising market? Monday, July 23, 2018
Quote Mark
  • "We have been very impressed with the personal service, attention to detail and comprehensive evaluation of our financial circumstances. We would certainly appreciate ongoing help and support from Richard over the future." Jason Kendall (Consultant in Accident and Emergency), Southmead Hospital
  • "Richard provides a very convenient and personal service. Richard has good knowledge and has the ability to go through reasoning for any recommendations." Tim Mitchell (GP), Montpelier Health Centre
  • "Richard provides an excellent service, prompt and flexible. Although the level of technical knowledge is impressive, answers to our questions are presented in a straightforward manner, without overwhelming us with information." Mary Gainsborough (Consultant in Paediatrics), Southmead Hospital
  • "Richard gives me an excellent personal service in my own home. His advice and explanations have been excellent. Richard also has excellent technical knowledge – who wouldn’t be happy?" Charles Record (GP), Frome Valley Medical Centre
  • "Richard provides an excellent, personal service. He responds very quickly and attentively to queries and very much keeps me up to date with important matters that affect me - such as the latest changes to pensions, investments and taxation. Recommendations are delivered in a timely, effective manner - usually face to face in my own home." Professor Gianni Angelini (Head of Cardiothoracic Surgery), BRI
  • "It is very convenient for me to be seen at home and Richard is very flexible with timings - especially when unexpected things crop up at the hospital. Meetings are friendly and relaxed with my long-term best interests very much at the heart of discussions." Professor Gianni Angelini (Head of Cardiothoracic Surgery), BRI
  • "We have found it far more reassuring having a local adviser rather than a national firm. We have found the service excellent and Richard answers all the questions we want answering. Richard's technical knowledge is excellent, he has detailed knowledge of pensions." Paul Male and Helen Lewis (GPs), Thornbury Health Centre
  • "The personal touch counts for a lot and the willingness to visit us at home is much appreciated. Richard provides an excellent, friendly, accessible service, not encumbered by jargon or salesmanship." Professor Peter Mathieson (Honorary Professor of Medicine), University of Bristol
  • "I can recommend Richard as providing measured, balanced independent financial advice. He listens very carefully and tailors advice appropriately in a knowledge-based manner. He is very accessible and gives his clients time and clarity in order to make the most sensible decisions for themselves based on the available facts." Andrew Medford (Consultant in Respiratory Medicine), Southmead Hospital
  • "Richard now knows me and understands my financial position. I have complete trust in his advice. The level of service I have experienced is second to none. We have received regular reviews in our own home, speedy and thorough advice to any queries." John Rees (General Practitioner, Specialist in Urology ), Blackwell and Nailsea Medical Group
  • "The advice I have received has dramatically altered my personal protection policies for the better and reduced my personal tax liability." John Rees (General Practitioner, Specialist in Urology ), Blackwell and Nailsea Medical Group
  • "I appreciate Richard's local knowledge and the fact that he is in contact with a lot of local general practitioners which is useful for networking. He is also very knowledgeable about the different pension schemes and their pros and cons." Fiona Hayes (General Practitioner) Bristol University Student Services
  • "I have enjoyed the process of dealing with a local advisor and it has not felt like a box ticking exercise. The service has been excellent. The great flexibility to come to my home at a time suitable to my working day has set this company apart from others I have dealt with in the past. The technical knowledge provided has been expertly tailored to my requirements and financial situation. The manner in which it has been delivered has also been first rate. " Beth Harrison (General Practitioner) Montpellier Health Centre
  • "We have regular meetings with the same adviser who knows our profile and keeps our requirements in mind with the plans he makes. The reviews are simple to organise and are always at a convenient time and location." Mike Bould (Orthopaedic Surgeon) Western General Hospital
  • "The service I have received from Wealth West is excellent! they are more personable and accessible than large firms and are not pushy at all. They also have a very good breadth and depth of knowledge." Billy and Annie Headdon (Anaesthetics and Intensive Care Trainee, General Practitioner) Montpelier Health Centre
  • "My experience of the service has been excellent. I have been able to ask many questions and have received excellent advice on my financial situation. The technical knowledge of Wealth West Medical is excellent. Anyone who can help my investments grow in the current environment clearly knows what they are doing. I would highly recommend Richard and Wealth West Medical." Linda Buczek (General Practice Manager) Bishopston Medical Practice
  • "The technical knowledge of Wealth West Medical is very good. Richard keeps up to date with the changes to the NHS pension scheme and new legislation." Melanie Lockett (Consultant) Southmead Hospital
  • "Wealth West Medical offers a friendly, helpful and efficient service. Richard keeps in touch at regular intervals and has a very good knowledge of pensions and investments." Rachel Brown (General Practitioner) Montpelier Health Centre
  • "Richard comes to my house for meetings and it is nice to see a familiar face. He remembers my details, and advises over the long term. Richard has a detailed understanding of my particular pension plan and has explained this very clearly to me. He has also helped me to manage tax payments for annual allowance and pension protection." Hugh Herzig (Consultant Psychiatrist) Southmead Hospital
  • .