RPSM08300080 - Scheme Administrator
Pages: Pension age: Can the scheme pay benefits on ill-health
grounds?
Can the scheme pay benefits on ill-health grounds?
If a
member is suffering from ill-health and has had to
give up work as a result, your scheme rules may allow them to take
their benefits immediately regardless of their age. There are two
ways in which benefits may be paid.
- If the
scheme administrator receives evidence from a
registered medical practitioner and is satisfied that the member is
(and will continue to be) incapable of carrying on their occupation
because of either mental or physical illness, HMRC legislation
allows a lump sum and pension to be paid on Ill-health grounds. For
further details, see
RPSM08100070.
- If the scheme administrator receives evidence from a registered
medical practitioner that the member is suffering from serious
ill-health, the scheme rules may allow the member to commute their
pension benefit into a lump sum. The term “serious
ill-health” means that the member’s expectation of life
is less than one year. For further details, see
RPSM08100080.
Once the relevant medical evidence has been obtained and the
benefit entitlement has been agreed, you may proceed to pay the
benefits in accordance with the scheme rules.
