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Ill-health - retirement benefits

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					Ill-health -
retirement
benefits


               Sept 2008
A key flexibility of the Teachers’       have completed when you
Pension Scheme (TPS) is the two          retire.
types of ill-health retirement         + Additionally, enhancement will
benefits that may be paid. This          only apply provided you leave
dual approach aims to support            service on grounds of incapacity
teachers unable to carry out any         and then apply within 6 months
employment due to illness or injury      of leaving either
and those who, while no longer               - pensionable employment;
able to work as a teacher, are still
                                                or
able to do other work.
                                             - ceasing the payment of
                                                combined contributions or
Key points                                      reservist contributions.
Ill-health benefits may be paid if     + Enhancement can also be
you have to retire before Normal         considered if you apply for
Pension Age (NPA) because you            benefits whilst on sick leave,
are permanently incapable of             maternity leave, paternity,
teaching due to illness or injury.       parental or adoption leave, or a
+ Applications should only be            career break which immediately
     submitted after all other           followed a period of
     avenues, such as redeployment,      pensionable employment.
     have been exhausted.              + If you are assessed as being able
+ You must provide medical               to undertake other gainful
     evidence that your illness          employment your benefits will
     permanently prevents you from       be based on your accrued
     teaching. Two types of ill health   service to the date of your
     benefits can be paid depending      retirement.
     upon the severity of the illness. + If you have been out of
                                         pensionable employment for
What is the difference between           more than 6 months, your
the two types of benefits?               service will not be enhanced.
                                         To qualify for ill-health retirement
+ if you are assessed as being
                                         benefits where you are out of
     permanently unable to teach
                                         pensionable employment you
     and unable to undertake any
                                         must be permanently unable to
     other gainful employment your
                                         undertake any gainful
     service will be enhanced. This
                                         employment.
     means that your service will be
     increased to more than you
Who will decide if I can receive How do I apply for benefits?
ill-health benefits?                     + If you are still employed you
+ The medical advisers contracted          should get the two forms
    by the Department for Children,        required for your application
    Schools and Families will              from your employer. One form
    consider your application. The         is for you to complete with your
    Secretary of State will then           employer, the other is for the
    decide if you can receive              medical evidence to support
    benefits based upon the                your application.
    medical advisers’                    + If you are no longer employed
    recommendation.                        as a teacher you can either
                                           download the forms from the
How much enhancement can                   Teachers’ Pensions website
be given?                                  www.teacherspensions.co.uk or
                                           telephone TP on 0845 6066166
+ The total amount of
                                           quoting your teacher’s pension
    enhancement is half the service
                                           reference number or National
    you could have completed
                                           Insurance number. TP also have
    before NPA .
                                           a minicom facility for the hard of
                                           hearing, 0845 6099899.
What if my life expectancy is            + If you are in service, both forms
less then one year?                        should be returned together to
+ If you are terminally ill, you may       TP by your employer or by you if
    be able to commute your                you are out of service.
    pension into a lump sum.
+ You must request this when you            Employers and their
    apply for ill-health benefits, as it    occupational health advisors
    cannot be made after you                must look at ways of helping
    receive an ill-health pension.          you return to work, e.g. re-
+ This does not effect any                  deployment, part-time working,
    survivors’ pension paid after you       a transfer to a post with less
    die.                                    responsibility or consider other
                                            workplace adjustments before
                                            concluding that ill-health
                                            retirement may be appropriate.
+ You and your employer’s               - the day on which you
  occupational health advisor, in          became incapacitated; or
  conjunction with your medical         - the day six months before
  practitioner, need to provide the        the date of the last medical
  medical evidence and complete            report used to accept your
  the application forms.                   application.
+ If you left pensionable teaching + Your pension is paid monthly in
  within 12 months of submitting     arrears on the day before your
  your application, the medical      birthday i.e. if your birthday is
  information sections of your       22 June then your pension will
  application form must be           be paid on the 21st of each
  completed by your ex-employer.     month.

What happens after TP receives        How is my pension and lump
my application?                       sum calculated?
+ Your application will be assessed   + If you were a member of the TPS
  by medical advisers who are           prior to 1 January 2007, your
  qualified occupational physicians     pension is 1/80th of the
  who will make the                     ‘average salary’ for each year of
  recommendation on whether or          pensionable service.
  not to grant you ill-health         + The lump sum in this
  benefits.                             circumstance is three times the
+ If your application is accepted,      pension.
  you must cease employment           + If you became a member after 1
  immediately.                          January 2007, your pension is
+ If your application is accepted       1/60th of the ‘average salary’ for
  and you are in pensionable            each year of pensionable
  employment, benefits are due          service, but you will only receive
  from the day after your last day      a lump sum if you decide to
  of pensionable employment.            convert part of your pension to
+ If you are accepted after leaving     a lump sum.
  pensionable employment              + Further information about
  benefits will be due, depending       average salary can be found in
  on circumstances, either:             the fact sheet ‘Average salary’
      - the day after your last day     available on the website.
        of pensionable
        employment;
I am buying additional pension          due if the proportion of your
by instalments, what will               lump sum that you use exceeds
happen?                                 25% of your pension rights in
+ If you are buying additional          the scheme.
   pension and you have not
   completed the payments then,       What happens if I become ill
   provided you were in good          after phased retirement or if I
   health when you started to buy     am in pensionable employment
   the additional pension and have    after retirement?
   paid for at least 12 months, you
                                      + If you have taken phased
   will be excused any further
                                         retirement, then you may
   contributions.
                                         receive ill-health benefits based
                                         upon your remaining service in
I am buying past added years             the TPS.
and the contribution period is        + If you become ill while in post-
not completed what will                  retirement pensionable
happen?                                  employment, you can apply for
+ If you are buying past added           an ill-health pension.
   years and you have not             + This will be based on the further
   completed payment, you may            service.
   be excused the payments due        + You must have completed one
   up until your 60th birthday.          year’s service.
+ If there is an amount that is due
   after your 60th birthday, you
   will be given the option of       Will my pension be increased
   accepting the service credit       each year?
   based on the payments made or + Your pension will be increased
   to pay the remaining               each April in line with the Retail
   contributions. If you are          Prices Index (RPI).
   intending to use 30% or more
   of your lump sum to increase
   your pension benefits, this could
   result in Her Majesty’s Revenue
   and Customs subjecting the
   whole of your lump sum to a tax
   charge of 40%. In addition a
   further 15% surcharge could be
Can I return to work?                Taking up employment outside
Returning to teaching                teaching
+ Ill-health benefits are awarded    If you are in receipt of an
  because you are permanently        enhanced pension and you intend
  medically unfit to teach, so if    to return to employment outside of
  you return to teaching your ill-   teaching and you want your
  health pension must stop           pension to continue, you must
  straight away. It is your          provide the Secretary of State with
  responsibility to notify TP        a certificate from a registered
  immediately of any employment      medical practitioner. This must
  undertaken when in receipt of      state that in the opinion of the
  ill-health benefits.               medical practitioner you still meet
+ If you wish to return to
                                     the medical condition for your
  teaching, your employer must       pension to be paid. The nature of
  be satisfied that you are fit to   your proposed employment will
                                     also assist the Secretary of State in
  teach in the capacity required.
                                     coming to a decision about
+ If your pension is stopped,        whether or not your enhanced
  another ill-health pension can     pension can continue to be paid.
  only be put back into payment if
  you become ill again and satisfy
  the medical advisers that you      In all cases, TP will need to know:
  have again become unfit to         + the name and address of your
  teach. You can retire on other        employer;
  grounds at the appropriate age.    + the date your employment
+ If your re-employment is              started;
  pensionable, future retirement     + the duration, if known;
  benefits will be calculated to
                                     + the rate of salary;
  take account of the extra
  pensionable service and new        + the nature of employment
  salary rates.                         (indicating whether it is full or
                                        part-time).
+ If you are considering returning
  to teaching, you are advised to
  inform TP.                         If you forget to tell TP about any
                                     employment whilst receiving a
                                     pension and you are overpaid, TP
                                     will recover this debt from you.
  Where there is any difference between the legislation governing the Teachers’
  Pension Scheme and the information in this leaflet the legislation will apply.

For more information on this or any aspect of the TPS log on
to www.teacherspensions.co.uk, call 0845 606 6166 or write
to: Teachers’ Pensions, Mowden Hall, Darlington DL3 9EE

				
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