Falling ill
Premium pension scheme
At what point do I qualify for an
ill-health pension?
Premium provides two levels of pension depending on whether:
-
your illness is so severe that there is no chance of you ever working
again (upper tier), or
-
there is a chance of you taking up some employment in the future (lower
tier).
To qualify for the upper tier the scheme’s medical adviser must be
satisfied that:
-
because of your health you cannot do any type of employment
-
this situation will continue until you reach pension age.
To qualify for the lower tier the scheme’s medical adviser must be
satisfied that:
-
because of your health you cannot do your own job or a similar job
-
this situation will continue until you reach pension age.
What pension will I get?
We will only pay you a pension if you have been in the scheme for at least
two years.
Upper tier
You will get your pension from the day you retire. We will not reduce it if
we pay it early. And we will increase it to the amount you would have had,
if you had continued with your current working pattern up to pension age.
You do not have to pay contributions for this extra service.
Lower tier
You will get your pension from the day you retire. We will not reduce it if
we pay it early. We will not normally increase your service however, if you
have less than 10 years’ service we will increase it to the lesser of:
-
10 years, or
-
twice your service.
This applies as long as the increase is not more than half the service you
had left to serve until pension age. If we do give you extra service, you
will not have to pay contributions for it.
Who decides whether I get an ill-health
pension and the level of it?
The scheme medical adviser will decide whether you meet the medical
criteria for an ill-health pension at the upper or lower-tier rate. Your
employer will then decide whether to retire you.
You have a right to appeal if you are refused an ill-health retirement
pension and you think you should qualify. You can also appeal if you are
awarded a lower-tier pension and you think you should qualify for an
upper-tier pension.
What pension will my husband or wife get
if I die after getting an ill-health pension?
In the lower tier your husband or wife will receive a pension based on
three-eighths of your ill-health pension. This is the equivalent of a
pension based on 1/160 x your pensionable pay x enhanced service.
In the upper tier we will work out your husband’s or wife’s pension in the
same way as for the lower tier, except that any enhancement will be that
which we would have given if you had died in service on the day that you
retired. If you are neither married nor in a civil partnership, your
partner may qualify for a pension. This will be the same as the pension for
a husband, wife or civil partner.
