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Ill Death Lump Sum (pensions) - has anyone else heard about this?

8 REPLIES 8
Cookie17
Member

Re: Ill Health Lump Sum (pensions) - has anyone else heard about this?

Thank you Ash66 for your message.  May I ask what is NED?

 

Every company is different in how they run things, I have a number of choices that I can take, but the one as I terminally ill, and need to demise within a year, means I would get a life changing sum, and that my husband would be financially secure as well.  What my husband and I are trying to do is to bring to light that if you are unable to work for a length of time for any reason, you can ask your firm if they do an ill health lump sum and what it entails for you with respect to your pension.  What you have kindly put below is helpful to other members who read this section.  Thank you for taking the time to respond, its much appreciated.


@Ash66 wrote:
I recently met with my employer to discuss my absence (9 months to date). They said if it reached a year they would have to review my employment. I'm sure it all depends on the scheme rules but they offered to get the figures for me even though I am currently NED. There are 2 options. 1 is straightforward and involves your GP only. The other is more complicated but you get more money. As far as I'm aware, I don't have to be incurable or terminal but only unfit for work but that maybe for the 1st option.

I declined the offer as I'm planning to return next month but it's certainly good to know about if things were to change.

 

 

Cookie17

Ash66
Member

Re: Ill Death Lump Sum (pensions) - has anyone else heard about this?

I recently met with my employer to discuss my absence (9 months to date). They said if it reached a year they would have to review my employment. I'm sure it all depends on the scheme rules but they offered to get the figures for me even though I am currently NED. There are 2 options. 1 is straightforward and involves your GP only. The other is more complicated but you get more money. As far as I'm aware, I don't have to be incurable or terminal but only unfit for work but that maybe for the 1st option.

I declined the offer as I'm planning to return next month but it's certainly good to know about if things were to change.
Cookie17
Member

Re: Ill Death Lump Sum (pensions) - has anyone else heard about this?

Thank you for your message, and I understand where you are coming from.  But its not about giving in really or facing reality, its about looking to the future and making possible financial provisioins for your loved ones. I wish you luck with your investigation.  I am doing it myself so I understand where you are coming from.

 

Cookie17


@stresshead wrote:

Thanks for this info..i really must get on and make enquiries. I keep putting things of becuse it makes everything seem so final. Can't quite get out of the disbelieving/denial stage!!


 

stresshead
Member

Re: Ill Death Lump Sum (pensions) - has anyone else heard about this?

Thanks for this info..i really must get on and make enquiries. I keep putting things of becuse it makes everything seem so final. Can't quite get out of the disbelieving/denial stage!!

sod6162
Member

Re: Ill Death Lump Sum (pensions) - has anyone else heard about this?

Hello ladies.  I entered this club in April, currently cycle 5 of 6 Docetaxol, plus herceptin and perjeta.  Diagnosis was secondary in liver (already receding after CT this month, very grateful).  Anyway, I had help in a large dose from financial volunteer at local BCC office.  Basically I was self employed, which I had to stop during chemo treatment (but may return to it if well at end of year).  He assisted my application for PIP, income supplement and helped me to get my deferred pension, classed as ill health now, from Met Police.  A letter had to be written by oncologist, which stated my diagnosis and that I could expect 18-24 months (not terminal) (and he reassured me that it was not definitive).  I also got a large lump sum, and although I paid some tax on that, I don't pay tax on the monthly pension or the benefits.  HUGE relief.  

I know that my ex employer judges each case on its merits (and the letter), so I expect the same from other, large organisations.

Hope this info helps someone.  And, if you don't ask, you don't get!!  

Ps. I'm 53, and already had full 30 years NI contributions.

stresshead
Member

Re: Ill Death Lump Sum (pensions) - has anyone else heard about this?

Cookie and Rachel, thank you so much for this info. I have skin mets but according to my onc am not terminal..yet. I have been considering this as i know i am not up to returning to work but didnt really know where to start. If only people knew how awful it is to think of your life ending in such cold and clinical terms I also think that we need to bear in mind that receiving a pension may affect any benefits rights we may have???  As if we dont have enough to deal with, eh!! Please keep us upadated with any decisions you make or any outcomes. xx

Cookie17
Member

Re: Ill Death Lump Sum (pensions) - has anyone else heard about this?

Dear Rachel

 

Thank you for your message and contents. I appreciate what you say and will have a look at the link you gave.  Every scheme no doubt will be different and you are right with respect to the 12 months.  My Oncologist has said that for me, I could well be dead within 12 months and so is writing a letter to my pension people to see if i fall into the criteria they wish to allow me to go for the ill health lump sum if I want to follow this route.

 

The money in question is life changing and I have to ensure also that my husband is financially secure after I leave this  mortal coil so there is much to consider.  Thank you for taking the time to comment on my post, it was really appreciated.

 

Cookie17

 

 

Rachel10
Member

Re: Ill Death Lump Sum (pensions) - has anyone else heard about this?

Hi Cookie17, Sorry to hear you are having to think about this and your friend too. I did know about this and whilst I am not there just yet, I have checked out the rules of my current pension scheme. I haven't yet gotten around to checking those for other pension schemes from different employers but I know I need to (another job on a long list!). The reason you have to be terminally ill with less than 12 months to live is that HMRC have some specific guidelines about releasing your pension fund tax free. They call it "serious ill health" and it is their definition that includes the 12 months. I have tried to paste the link to the Govt website. It is worth googling it as there are loads of sites out there giving I for,action which can be quite helpful about how you do it.

https://www.gov.uk/early-retirement-pension/personal-and-workplace-pensions

Cookie17
Member

Ill Death Lump Sum (pensions) - has anyone else heard about this?

I am not sure how many of you out there with terminal cancer are aware that you may be able to cash in your pension early?  I believe it is referred to as an ill health lump sum.

 

A friend of mine who has terminal brain cancer found he was able to do this due to the fact he has a stage IV cancer like myself, mine being breast cancer.  I have to admit it was a shock to the system to find this may be possible.

 

A lot depends on what your firms scheme's definition of what ill-health (sickness) means, but usually you will be considered for an ill-health pension if you're unable to carry out your normal job because you're physically or mentally ill and have a life expectancy of less than a year. That is the important proviso - your life expectancy which for many of us is hard to deal with on a daily basis let alone for this purpose.

 

I myself, am now in the process of seeing whether I can do this myself in light of my condition.  I am terminally ill with a Stage IV breast tumour and metastases with secondary cancers of the spine and liver.  I have to discuss with my Oncologist to discover what my possible prognosis is in light of the terms of my insurance people.

 

Every year thousands of people in the UK are diagnosed with conditions that prevent them from continuing to work. Many of them it seems take the option of early retirement due to ill health which I had not even contemplated. One consolation is that many are able to take their pension benefits early too, to help them support themselves financially. This again is an important point if I die what happens to my husband Paul.

 

Provided you meet the criteria of your scheme, you may be able to take your benefits early – and your scheme may even pay you an ill health lump sum due to your condition. But this depends on the scheme you are a member of.

 

Since we have been looking into this, my husband and I wondered how many people out there in a similar situation, knew this sum was possibly available to them.  It may not be straight forward as you might think, but it may help with financial matters going forward and how able you are to enjoy the life you have whilst you still have it. 

 

No one can really predict how long a cancer patient has to live, they can only guess, like how long is a piece of string? I don't know how long I have, I know my condition is slowly deteriorating and I accept that, and I will fight until they have tried what they can and let my body do the rest.

 

Please if you are in a similar position, then please take a look and see what your company can do for you. I apologise if this has gone into the wrong place as it is a while since I have been on the boards.