Retiring early from Pensionable Service on medical grounds
If you cannot work due to ill-health, you may retire at any age with an immediate pension, subject to certain conditions and with the consent of the Trustees and the Company. There are two levels of benefits payable, depending upon the severity of your illness.

• Incapacity
  is defined as having a physical or mental condition which, in the opinion of the Trustees, permanently prevents you from carrying out the primary duties of your normal occupation.

• Chronic ill-health
  is defined as having a physical or mental condition which, in the opinion of the Trustees, permanently prevents you from undertaking any regular work for the Company or any other employer.

The basis of the calculation of the medical retirement pensions is illustrated in the diagram shown below.



Notes
Your prospective Core Pension is 1% of Final Basic Salary for each year between retirement and Normal Retirement Date adjusted by the Longevity Adjustment Factor.

The Trustees have the power to reduce, suspend or terminate the pensions described above if, in their opinion, this is justified by a subsequent change in your circumstances.

In addition, your Retirement Account can normally be taken as a tax free lump sum. Alternatively it will be converted into a Scheme pension using the Pension Rate applicable when you retire. Alternatively, you may purchase a pension (which is called an annuity) from an external provider eg an insurance company and the Trustees have appointed Hargreaves Lansdown to help you choose an appropriate annuity if you wish to consider this option. More information about this service can be downloaded below and you can click here to go to their website. Hargreaves Lansdown will help you to investigate if your state of health could lead to you benefiting from enhanced annuity terms.

Further details of the ill-health early retirement process can be obtained from your local HR or Occupational Health.

Restricted terms
If you are a member admitted on the basis of restricted terms, the basis of your pension payable on retirement on medical grounds will be as previously notified to you.

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Hargreaves Lansdown Flyer

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28/02/2012

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