Ill Health Retirement (IHR) occurs when an employee’s condition makes them permanently incapable of doing their job, leading to an early exit from the workplace.

This formal medical process allows employees who meet the criteria to access their pension benefits early.

The Assessment

The decision is based on an independent medical assessment by an occupational health physician or specialist who will determine two key factors:

1. Whether the employee is permanently incapable of performing their current role due to illness or disability.

2. If the condition is expected to prevent the employee from working until their normal retirement age.

The assessment provides objective evidence, ensuring a fair and legally defensible outcome for both the employee and the pension scheme administrator.