Occupational Medicine Advance Access originally published online on March 30, 2005
Occupational Medicine 2005 55(5):352-356; doi:10.1093/occmed/kqi032
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changing medical criteria and medical severance payments may reduce the rate and costs of ill-health retirement
Atos Origin-Medical Services, 68 Winifred Lane Ormskirk, Lancashire L39 5DL, UK. Tel: +44 1695 423497; fax: +44 1695 420931; Email: nigel.wilson{at}atosorigin.com
Objectives To identify the core best practice standards in ill-health retirement (IHR) procedures. To investigate whether changing medical criteria and introducing medical severance payments affect the rate and cost of IHR.
Methods The core standards for best practice in IHR procedures were distilled from the published literature. On 1st April 2000 the study pension scheme altered the IHR medical criteria to define permanent incapacity and introduced medical severance payments for employees with temporary incapacity. Rates and costs of IHR were measured before and after these changes.
Results Following the changes, the annual rate of IHR fell from 8.89 to 2.90 per 1000 members (P<0.001), the median age at IHR rose from 50 to 55 years (P=0.01) and pension scheme costs fell by £25 million per year.
Conclusions Changing medical criteria and introducing medical severance payments may reduce the rate and costs of ill-health retirement. Target rates of four cases of IHR per 1000 active members per year, and 15% of total retirements, are proposed for schemes serving industries with average health risks.