Ill health retirement

If you are unable to work because of permanent ill health or incapacity, you may be entitled to receive your pension early, without reduction. If you retire on ill health grounds, you will also receive pension for the years between your date of retirement and age 65.


John is 45, and retiring through ill health. His salary is £40,000 per year and he has been in the Scheme for 10 years. His ill health pension is:

Accrued pension at age 45: (10 x £40,000)/80 £5,000
Pension to 65: (20 x £40,000)/80 = £10,000
Total ill health pension £15,000
Tax-free lump sum of 3 x £15,000 = £45,000

If you retire through ill health, and your health improves and you return to paid employment, you should let JLT know as soon as possible.