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Incapacity Retirement
If you have not reached Normal Retirement Age and are unable to undertake any gainful employment due to physical or mental incapacity and are likely to remain permanently unable to do so you may be eligible to apply for Incapacity retirement.
You should apply to your Employer for Incapacity retirement. This form of early retirement is subject to medical assessment.
The value of your Incapacity pension is based on your Pensionable Service:
If you have more than 20 years Pensionable Service
Your Incapacity pension will be based on your Pensionable Service at date of retirement and no reduction will be applied for early payment.
If you have less than 20 years Pensionable Service
Your enhanced Incapacity pension will be the lesser of:
- a pension of 2/60ths of Final Pensionable Earnings for every year of Pensionable Service subject to a minimum of 10/60ths and a maximum of 20/60ths or;
- a pension of 1/60th of Final Pensionable Earnings for every year of potential Pensionable Service through to Normal Pension Age, subject to a maximum of 20/60ths
If at a later date the Trustee decides that the Scheme’s criteria for Incapacity has ceased to apply, the Trustee can decide that the pension shall be suspended.
Example of how Incapacity pension is calculated:
|
Member aged 55 with 9 years pensionable service |
|
|
Pensionable Service at Retirement |
9 years |
|
Enhancement |
9 years |
|
Total Pensionable Service |
18 years |
|
Incapacity Pension |
£7,500 p.a. |