Statutory sick pay
Statutory Sick Pay
What is it?
Statutory Sick Pay (SSP) is a benefit which is paid to employees for up to 28 weeks of incapacity for work. Your employer may have an occupational scheme for sick pay, but they are not allowed to pay you less than SSP providing you qualify.
Do I qualify?
If you work for an employer under a contract of service (even if you have only just started), you are entitled to Statutory Sick Pay if the following apply:
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You have been sick for at least four days in a row (weekends and bank holidays are included)
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You earn at least £90 a week on average
You cannot get Statutory Sick Pay if you are away from work because any of the following apply:
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you are taking part in trade union action
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you are in legal custody
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you have been getting Incapacity Benefit in the eight weeks before your illness
How much is it?
The standard rate for Statutory Sick Pay is £75.40 a week.How do I apply?
You should automatically get a claim pack sent to you from The Pension Service four months before you reach State Pension age. If you haven't got the pack three months before you reach State Pension age, yo can do one of the following:
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call the State Pension claim line on 0845 300 1084, text phone 0845 300 2086 - lines are open 8.00 am to 8.00 pm, Monday to Friday
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download the claim form, print it out, then complete and send it to your pension centre or local social security office
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you can claim online
You don't have to claim your State Pension as soon as you reach State Pension age. If you defer your claim for at least 12 consecutive months you can either receive additional weekly pension or a lump sum when you do claim.
If you do defer your pension it may be worth getting advice as to whether a lump sum or increased pension would be more beneficial. The increased pension would affect any entitlement you have to pension credit, for example, but the lump sum is not treated as capital and would not affect any means-tested benefits.
For an easy way to find out which benefits might apply to you and your circumstances go to What can I claim?
The Benefits Maximisation Service can provide personal advice on what you may be entitled to and help you make a claim. For more information go to Benefits Maximisation Service.
What if my circumstances change?
If your circumstances change during the year your entitlement to State Retirement Pension can change. You should inform the Pension Service if:
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you go into or come out of hospital
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you go abroad to live or for a long visit
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you go into a care home
You can phone the Pension Service Monday to Friday from 8.00 am to 8.00 pm on 0845 60 60 265, text phone 0845 60 60 285.
For an easy way to find out which benefits might apply to you and your circumstances go to What can I claim?
The Benefits Maximisation Service can provide personal advice on what you may be entitled to and help you make a claim. For more information go to Benefits Maximisation Service.
Occupational Pensions
Occupational pension schemes are set up by employers to provide pensions and life assurance benefits for employees, for example, a tax-free lump sum payable if they die before retirement to their dependant(s).
There are two main types of occupational pension scheme:
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final salary, in which the pension is a proportion of your salary at or near retirement date and is linked to the number of years you have worked for the particular employer; or
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money purchase, in which the pension is based on the total value on retirement of the money paid into the scheme and on how the investment has performed.
Do I have to join this scheme?
As an employee you have the right to leave, or decline to join, an occupational pension scheme. If you are thinking about leaving an occupational pension scheme, you should consider the implications of this very carefully, because an occupational pension scheme will usually be far more advantageous than a personal pension scheme. In addition, an occupational pension scheme may be reluctant to allow you to return to the scheme after you have left to take out a personal pension. If you decide to leave, or decline to join, an occupational pension scheme, you will then have to contribute towards additional pension or a personal pension.
If you are thinking about leaving a personal pension scheme, you should get independent financial advice first. You can find information on how to get independent financial advice on the pensions page of the Financial Services Authority web site at www.moneymadeclear.fsa.gov.uk
Disclaimer
Although every effort is made to ensure the information on these pages is accurate and up to date, it should not be treated as a complete and authoritative statement of the law.