What If I fall ill?
Under the Rules of APS, you can draw your pension straight away if you are:
- retired by BA because you are unable to do your normal duties because of ill health, or
- a pilot or engineer officer who loses his or her licence before Normal retirement age.
When you retire we will confirm the date that the Trustees will review your pension for the first time.
While you are under your Normal retirement age, payment of your ill health pension will be reviewed regularly and the Trustees can vary, suspend or revoke payments in certain circumstances. The Trustees may ask for evidence of your continuing incapacity at any time and/or suitable evidence of any earnings you may be receiving whilst also receiving an ill health pension.
How your ill health pension would be worked out:
- If you have five or more years of Pensionable service, or if infirmity results from an air accident on duty, we calculate your pension as a percentage of your salary based on the years, months and days that you've been a member of the Scheme plus half the service you would have completed between the date you retire on ill health grounds and Normal retirement age.
- If you have under five years' Pensionable service, your pension will be based on salary and length of Scheme membership and reduced to take account of the early payment.
- Special arrangements apply to Ground Staff in APS who were in service on 1 Dec 1989. As long as there has been no break in your service, when we calculate the ill health pension we will include half your potential service to age 63.
You can exchange part of your pension for a tax-free Lump sum on retirement.
- This is currently paid tax-free. HM Revenue and Customs sets a limit for the amount you can take. If you choose this option, there will be less money for your monthly pension.
- You also give up the future annual increases on any pension you give up for cash and the pension is given up for life.
For more information on payment options, such as exchanging part of your pension for a tax-free Lump sum, see I'm thinking of retiring.
Serious ill health
If you are suffering from a life threatening illness it may be possible to receive all of your pension as a tax-free lump sum whilst continuing to provide a pension for your dependants should you die. HM Revenue & Customs (HMRC) will only allow such payments if you have a short time to live. The Scheme Rules therefore only allow serious ill health payments if your registered GP or consultant will provide written confirmation that you have less than 12 months to live. Please contact us if you wish to learn more about this option.