Retirement and company pension scheme 🤔

[LindaB]

I'm sure there are other forum members who have been in the same position I find myself in.
I have a work pension and my understanding is I can claim the whole pot due to the MND diagnosis.

However my HR department say I need assessment (this may just be accessing health records & DS1500) by an independent medical professional and if they find I'm unfit for work I will be dismissed under health reasons (with 12 weeks notice). Then negotiate for my pension to be paid.

With my continued difficulty talking and as my job is all about communication I find it's become beyond me to keep working. A!so the dreaded fatigue. Currently on sick leave. Also realistically with a limited life expectancy I think time with family & friends more important than work...truthfully.

What I don't want is to be left without income (apart from PIP which I have) so wondered if anyone has been through the process of claiming their pension pot in entirety? I think the state pension can't be claimed any earlier?
Thanks all
😉😏🤔

[matthew55]

I was dismissed due health reasons and it's not up to them how much you get. 😉😁😘😍xx

[LindaB]

Thanks matthew55 so do you remember how long after they decided to dismiss you it took to get your pension pot??

[matthew55]

As long as it took to get my neurologist to sign my form. About two months. 😁✌️😘😍xx

[Mary C]

Hi linda
As you know I worked for the local authority.l had independent medical assessment too but over the phone due to covid.Then I got dismissed due to health issues meaning I can’t work.12 weeks notice I think )
I went off sick Jan 2020 and finished work July 2020 officially after getting diagnosis of MND June 2020.
I had to decide lump sum and smaller work pension or smaller lump sum and higher monthly pension payment.
No I couldn’t claim state pension any earlier but got PIP and a car on motability scheme pre state pension becoming payable.
Hope finances work out ok for you.As the lump sum put more money in the bank I ended up paying for through floor stairlift, the original stair lift and wet room as all these were means tested though MNDA helped with purchasing bio bidet .
Best wishes
Mary

[LindaB]

Mary C thanks Mary that's interesting as I thought you could c!aim the entirety of the pension pot in one go....not a monthly pension amount?
So did you have full pay for the 6 months sick leave....that seems sensible. It's a bit of a mine field when you don't know.
Thanks for responding👍🏻😘

[LindaB]

As long as it took to get my neurologist to sign my form. About two months. 😁✌️😘😍xx

Which form was this Matthew?

[matthew55]

It was sent by the pension company after I told them I had a ds15000

[LindaB]

matthew55 thanks that's really helpful to know. Seeing the word dismissed was a bit of a shock initially😏

[Suefromwakey]

Linda get some advice here, there could be a income tax implication and whilst we probably all have to pay the dreaded 20% you don't want to tip it over to 40%
send the MNDA an email about finance - they will probably direct your concern to CAB or someone

Sue

[matthew55]

With the form signed you get the whole pot tax free

[Suefromwakey]

That's interesting Matthew and something I didn't know thanks for that.............Albert gets his Royal Mail pension so I guess hes passed this particular obstacle.

[Lynne K]

Good luck Linda xx

[LindaB]

Thanks Lynne K much appreciated 😘

[PeterPan]

Mary C thanks Mary that's interesting as I thought you could c!aim the entirety of the pension pot in one go....not a monthly pension amount?
So did you have full pay for the 6 months sick leave....that seems sensible. It's a bit of a mine field when you don't know.
Thanks for responding👍🏻😘

Hi Linda,

You can’t take state pension before state pension age.

Normally, a person taking a work pension lump sum of up to 25% can do so tax free. Normally, a person pay a punitive rate of income tax if taking more than 25%. BUT this is from gov.uk website:

“If your life expectancy is less than a year

You may be able to take all the money in your pension as a tax-free lump sum, if all of the following apply:

• you’re expected to live less than a year because of serious illness
• you’re under 75
• you don’t have more than the lifetime allowance of £1,073,100 in pension savings

If you’re over 75 you’ll pay Income Tax on the lump sum.

Check with your pension provider. Some pension funds will keep at least 50% of your pension for your spouse or civil partner.”

It’s a complex subject and worth getting impartial specialist advice. Hope this helps!