The unexpected does happen and long term ill health can bring financial worries.
For members of the Scheme, each case of ill health retirement is considered individually and is based on independent medical advice.
If you have been a member of the Scheme for at least 2 years and HBOS agrees that you are permanently incapacitated, you can retire regardless of your age and you will be able to use your individual retirement account to purchase retirement benefits.
If you have been a member of the Scheme for at least 5 years and HBOS agrees that you are permanently incapacitated, we will make sure that the value of your individual retirement account is at least equal to a set minimum amount. The extent of your ill health will be taken into account and, if necessary, your individual retirement account will be increased to match the relevant minimum amount.
For the purpose of these service thresholds, only scheme service after 1 April 2003 counts.
Based on medical evidence, HBOS will decide which level of benefit will apply:
Total Incapacity
Total incapacity means that you are permanently incapable of carrying out any job.
If necessary, your individual account will be increased so that it is equal to 30% of your basic salary for each year you have been a member of the Scheme plus your potential membership had you worked until normal retirement date. Your individual account will be capped at 6 times your annual salary.
Partial Incapacity
Partial incapacity means that, due to a permanent incapacity, you cannot do your job with HBOS and your earnings capacity is impaired. If necessary, your individual account will be increased so that it is equal to 20% of your basic salary for each year you have been a member of the Scheme plus your potential membership had you worked until normal retirement date. Your individual account will be capped at 4 times your annual salary.
