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Trustee Guidance: Outstanding ill-health review awards

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.

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