What happens when ill health forces you out of work and you cannot avail of early retirement?

Dear John,

My name is Jane. I am a single woman without any dependents and I am employed in a local county council. I have been there for 20 years in the clerical department. In June 2011, I was diagnosed with IBS, a condition that is very painful. I tried to carry on working but due to this ill health ended up on sick leave for six months.

At that stage, my employer sent me for an assessment with their GP. He was sympathetic but said I was to return in ten weeks’ time and if there was no improvement he would sign me off permanently.

Towards the end of this probationary period, I knew I was not well enough but I did not want to lose my job so I went to my own GP. I suggested part-time work might suit me better and he supported me in this view.

However, I was not able to even work part time and went on sick leave again. I was hospitalised for some weeks and my consultant wrote that my condition was permanent. However, another inspection from an Occupational Physician stated:  “It is not possible to describe her complaints as permanent, or to recommend on that basis that she is a suitable candidate for early retirement on the grounds of ill health.” A medical report prepared for the Pension Ombudsman service in April 2013 also largely confirmed that view.

So, I know you would advise that I had some form of illness protection in advance – but who would have known I would contract IBS in my early 40s.

Is there anything that I can do now?

Thank you,

Jane

 

Dear Jane,

Sometimes things happen that are outside of our control and are no fault of our own. You could not predict that you would get an illness that was sufficiently painful to warrant you unable to work but also not being sufficiently serious to result in you being signed off on permanent disability. It’s a tricky one as well as being emotionally difficult.

So I want to say from the outset this is not of your making – however, stressed you may feel, you are not the cause of your ill health and the inability to work.

So let us look at this from two angles. The first is on where you stand on your entitlements and the second is to look at your working situation.

As you work for the County Council and started in 1991 that would mean that you are on the D rate of PRSI. This rate of PRSI is not a full rate and would hamper any social welfare payments and you wouldn’t qualify for the State Pension. In addition, the employer would only pay you 6 months full rate of pay and 6 months ½ rate of pay. This leaves you with a problem as you cannot do your current job, you don’t qualify for social payments and your employer only has to pay a finite amount of sick pay.

However, all is not lost. In many cases, the employer will accommodate an employee and transfer them into another role, section and possibly offer reduced hours. This can enable an employee to continue to work within what their health allows and will also provide an income. So, while things may have been a bit stressed in work, I suggest you sit down with your employer and look at other areas or jobs where you may be able to contribute.

Wishing you all the best,

John

If, like Jane, you have any queries about your financial position or financial future, contact us for a free consultation through our website at www.3sixty.ie.