If an application for an ill-health award is made before the assessment date, the award must be completed, ie a decision must be made, within the six months after the assessment date.

If a decision is not reached within six months:

• if the decision is in the pension scheme member’s favour he will not be eligible for payment:
  • during the assessment period;
  • after the assessment period if the Pension Protection Fund assumes responsibility for the pension scheme; and
• the Pensions Regulator can apply a Section 10 penalty under the Pensions Act 1995 (c.26)(civil penalties) if the trustees did not take all reasonable steps to make a decision on the application.

Sections 140 and 141 of the Pensions Act 2004 enable the trustees to review any ill-health award granted in the three years prior to the assessment date. More information on this is available in the Data Audit section.

Back to Financial Management                                           Detailed Trustee Guidance Home