Employer Sick Pay & Ill-Health Early Retirement
Employer Sick Pay:
If you are employed by a large employer, particularly in the state sector, there may be a sick pay scheme in place that would pay you full pay for 6 months followed by half pay for a further 6 months.
However, if you are are employed by a small to medium sized firm, you employer may pay sick pay to you for only a very limited period, perhaps 3 months at best, or at worst, none at all, except for Statutory Sick Pay. DirectGov
(Details of your own sick pay entitlement will be detailed in your contract of employment.)
You may feel that your employer will continue to pay you after your contractual sick pay ceases, but in reality, could your employer afford to pay you indefinitely?
Ill-Health Early Retirement:
If you're in an occupational pension scheme, you may be able to claim ill-health early retirement, but did you know that most schemes won't consider you for ill health early retirement unless your disability is permanent. (Examples include the NHS Pension Scheme and the Teachers' Pension Scheme)
Even if your own occupational pension scheme rules do not state that your disability must be permanent before considering your claim, case law (see pensions advisory service) will allow your employer's scheme administrators to presume that your disability must be permanent. This means that even though your doctor may confirm that you are too ill to work, your ill-health early-retirement application can be refused.
Due to increasing cost pressures, pension schemes are likely to adhere strictly to their procedures when assessing ill-health early retirement claims.
A 'temporary' condition could last several years. What would you do if your condition is not deemed 'permanent' in nature by your pension scheme's medical advisers and is refused?
Even if your employer did allow ill-health early retirement, this may substantially reduce your pension; if you have your own long-term income protection cover, you will not need to claim on your pension.
