Ill-Health/Incapacity Retirement and Full Commutation

Ill-health/incapacity retirement and full commutation

Introduction
Process
Pension Scheme Requirements
General Information

Introduction

1.If an employee becomes incapable of carrying out the duties of their post, due to ill health or incapacity and is an active member of a Pension Scheme provided by UCL, they may be able to retire early on an unreduced basis. In all cases this would be subject to providing satisfactory medical evidence and meeting the eligibility conditions of the Pension Scheme.

2. In cases of serious ill health, where life expectancy is limited to less than 12 months, an active scheme member can consider the option of applying for full commutation. Full commutation is a conversion of all ill health benefits into a single payment, whilst retaining the right to a partner and children's benefit.

3. If a Manager is concerned about an employee’s ill health or incapacity, a referral should be made to Workplace Health for advice in the first instance.

Process

4. Applications for ill-health/incapacity early retirement need to be made via UCL Pension Services whilst an individual is still a UCL employee and an active member of the pension scheme.

5. With respect to full commutation, it is recommended that an active scheme member should request a full commutation quotation from the pension scheme via UCL Pension Services before applying.

6. It should be noted that because there are third parties involved in the process, it can take approximately 3 months or more from the point of application to the time approval is provided and benefits are eventually put into payment.

7. UCL Pension Services will initiate the claims process and co-ordinate with Workplace Health for the gathering of the information required in order to submit the application to the Pension Scheme administrators. Similarly, Pension Services will liaise with HR Business Partnering, particularly where there is or has been involvement in individual cases relating to long-term sickness absence.

Pension Scheme Requirements

8. Each Pension Scheme has its own individual requirements relating to;

eligibility conditions
benefit entitlements
the application process
medical evidence required
forms that need to be completed
criteria to be met following the payment of benefits (in accordance with the scheme rules)

9. This information is available from the individual Pension Schemes:

Universities Superannuation Scheme (USS)

Superannuation Arrangements of the University of London (SAUL)

National Health Service Pension Scheme (NHS)

Medical Research Council (MRC)