Protect your business from unexpected ill health early retirement payments.
Defined benefit pension schemes can face large and unexpected costs when a member retires early because of ill health.
Our Ill Health Early Retirement Benefit is an insurance policy that helps you de-risk, budget and plan for this unpredictable liability.
- Permanent ill health could affect any of your employees at any time
- Many schemes promise to pay a pension to members retiring early due to ill health
- The unexpected liability will cause a strain cost on the pension scheme
- Could be equivalent to 10x an employee's salary and is ultimately payable by you
The impact on your scheme
Early retirement costs will vary depending on the person's age, salary and length of service
- The pension will begin earlier than expected and so could be paid for longer
- There is usually no reduction for early payment
- And the employee may be entitled to the future years of pensionable service
- Immediate liability
A sudden additional liability could severely impact the stability of a scheme’s funding and The Pensions Regulator could insist that you make an immediate extra contribution
- Helps you to manage the strain cost on your pension scheme caused by an employee retiring early due to ill health
- Offers the flexibility to choose a level of cover you need
- Includes purpose-built tools to make it easier to set up a policy
- Is suitable for pension schemes with at least 100 active members
- Does not limit the number of claims you can make in a year
- Has a clear claims process
Find out more