Medically boarded, early retirement, retirement

[Pitbull]

Long story short:

Mother is developing heavy Parkinson's and the tremors has gotten so bad one can't read what she writes.

She needs to write as part of her Job: Hospital matron.

Anyway, they now want to have her medically boarded. She's turning 63 this year and retirement age set at 65. Now she can either go and get boarded as they want to do, or she can request early retirement or maybe try and stick it out 2 more years for normal retirement.

My question:
Are there any benefits to any of these 2/3 options? Does it matter whether she's boarded or retires?

 

[the eskimo]

It really depends on the conditions of the relevant pension fund.

My answer below is based on a guess that your mum is a GEPF member (since she's a hospital matron)

Boarded is the term used for early retirement due to ill-health. Doctors would need to fill in a form and this gets submitted together with the retirement paperwork.

There are penalties on standard early retirement for each month you retire before a certain age. I think this age may be 60, but it's worth checking. And if i recall the penalties are something like 1/3 % for each month, 4% for each year. These penalties do not apply for early retirement due to ill health.

Under early retirement, she would not get as big a benefit as if she stayed until 65. This is purely as number of years of service is used in the computation of the benefit. Further, the increases she would get in her salary would be greater than the increases she gets as a GEPF pensioner.

As to whether she continues would be a personal decision, and can't help you with that one.

Edit:
If your mum is not a GEPF member,

1. If your mum is a member of a Defined Benefit (DB) fund, the rules will likely be similar to what I have mentioned for GEPF. The GEPF is a DB pension fund.

2. If your mum is a member of a Defined Contribution (DC) fund, her retirement benefit will simply be the market value of her contributions (that is, contributions + investment returns - fees).
(This assumes no insurances were taken to cover retirement contributions if one is unable to continue working before one's normal retirement date).

 

[heartbroken]

As above, either medically boarded or stick it out. Early retirement comes with penalties.

 

[Pitbull]

It really depends on the conditions of the relevant pension fund.

My answer below is based on a guess that your mum is a GEPF member (since she's a hospital matron)

Boarded is the term used for early retirement due to ill-health. Doctors would need to fill in a form and this gets submitted together with the retirement paperwork.

There are penalties on standard early retirement for each month you retire before a certain age. I think this age may be 60, but it's worth checking. And if i recall the penalties are something like 1/3 % for each month, 4% for each year. These penalties do not apply for early retirement due to ill health.

Under early retirement, she would not get as big a benefit as if she stayed until 65. This is purely as number of years of service is used in the computation of the benefit. Further, the increases she would get in her salary would be greater than the increases she gets as a GEPF pensioner.

As to whether she continues would be a personal decision, and can't help you with that one.

Thank you eskimo,

So it's ok then for me to assume that Medically boarded would then mean: Early retirement without the early exit penalty? In her profession the retirement age is 65. I was just curious if there are any downsides to it and I think you just answered and rest my reservations. She asked me and I don't know jack shyte about these things.

I think she's ready to retire so she was just scared that if she gets boarded it would have negative repercussions as opposed to early retirement or just retiring in 2 years time. Medically boarded then just means she "retires" at the age of 63 due to illness.

 

[Pitbull]

As above, either medically boarded or stick it out. Early retirement comes with penalties.

Epic. Thank you guys, will chat to her

 

[Wife]

Your mom needs to go and see this Dr. He's fantastic and specialises in Parkinsons and movement disorders. He has a 7 month waiting list so book now. http://www.dgmc.co.za/doctor/dr-dave-anderson

 

[Pho3nix]

Your mom needs to go and see this Dr. He's fantastic and specialises in Parkinsons and movement disorders. He has a 7 month waiting list so book now. http://www.dgmc.co.za/doctor/dr-dave-anderson

Not to detail but what can a doc do against Parkinson's?

 

[maumau]

Not to detail but what can a doc do against Parkinson's?

I hear you Phoenix but the more they know the more likelihood there is of finding a cure or at least a method of slowing it's progress.

This doctor says he specialises in Parkinsons so perhaps he's helped patients in the past.

I've heard of at least one unconventional medication and would certainly try anything if I were sick with this disease.

 

[ABCpt]

Just in adding to the Eskimo's great answer, let her try to get an Quote for Ill health retirement from her pension fund administrator to get an better idea of what she will be getting.

 

[iDOL]

Just to add to what was indicated by the other folks previously.

I would always opt for the Disability benefit first until retirement age (especially if it's a defined contribution fund) it allows for a few more years contributions toward the retirement benefit. Depending on the type of disability benefit, should be generally around the 70-75% of the salary being paid as a benefit.

Depending on the type of fund (DB/DC) , by retiring now (especially in the instance of a DC fund) the pension "income" you purchase will largely be based on what you have available to fund that purchase with so, I would always opt to delay the retirement and go the disability income route - sometimes you may find that the pension income is less than what you would receive from the disability benefit.

 

[MickeyD]

Just to add to what was indicated by the other folks previously.

I would always opt for the Disability benefit first until retirement age (especially if it's a defined contribution fund) it allows for a few more years contributions toward the retirement benefit. Depending on the type of disability benefit, should be generally around the 70-75% of the salary being paid as a benefit.

Depending on the type of fund (DB/DC) , by retiring now (especially in the instance of a DC fund) the pension "income" you purchase will largely be based on what you have available to fund that purchase with so, I would always opt to delay the retirement and go the disability income route - sometimes you may find that the pension income is less than what you would receive from the disability benefit.

Supported. !!!!!

In most cases the disability benefits outweighs the pension benefits, eg. medical aid.

 

[FNfal]

IIRC. If it is a government retirement and she is boarded she should receive an extra 5 pensionable years .
Non government this does not apply .

 

[Pitbull]

Just to add to what was indicated by the other folks previously.

I would always opt for the Disability benefit first until retirement age (especially if it's a defined contribution fund) it allows for a few more years contributions toward the retirement benefit. Depending on the type of disability benefit, should be generally around the 70-75% of the salary being paid as a benefit.

Depending on the type of fund (DB/DC) , by retiring now (especially in the instance of a DC fund) the pension "income" you purchase will largely be based on what you have available to fund that purchase with so, I would always opt to delay the retirement and go the disability income route - sometimes you may find that the pension income is less than what you would receive from the disability benefit.

This is it exactly.

They have now referred her to a Nero Surgeon who will then do the paperwork. She will then be medically boarded and receive 75% of her salary till retirement age. Which is 2 years from now. I really appreciate the advice guys, this has helped her make sure she get's what she's due. They wanted her to take early retirement and when she refused all this was now tabled. Knowledge is power

 

[Pitbull]

I hear you Phoenix but the more they know the more likelihood there is of finding a cure or at least a method of slowing it's progress.

This doctor says he specialises in Parkinsons so perhaps he's helped patients in the past.

I've heard of at least one unconventional medication and would certainly try anything if I were sick with this disease.

I'll give her the Dr's details even if she can just help with research. It's not in such an advanced stage that she can't hold a glass of water (given she needs to use 2 hands ). The problem she has is that she deals with patients and any error even in her admin can have dire consequences. She would rather not risk it. Her handwriting is so bad, she can't even read it .

 

[akescpt]

im assuming shes government. tell her to ask her pension department to do two quotes for the different scenarios. then decide.

my mom was a matron as well before retiring and she always mentions that resisted the urge to take early retirement and worked 2 extra years and got so much more money.

dude. I realize your mom is already retirement age. its 60 for women isn't it? 65 for men the last time I checked. if she is 60 there shouldn't be to many penalties.

 

[MickeyD]

im assuming shes government. tell her to ask her pension department to do two quotes for the different scenarios. then decide.

my mom was a matron as well before retiring and she always mentions that resisted the urge to take early retirement and worked 2 extra years and got so much more money.

dude. I realize your mom is already retirement age. its 60 for women isn't it? 65 for men the last time I checked. if she is 60 there shouldn't be to many penalties.

Retirement due to ill health (full medical board) trumps early retirement any day of the week.

 

[MickeyD]

This is it exactly.

They have now referred her to a Nero Surgeon who will then do the paperwork. She will then be medically boarded and receive 75% of her salary till retirement age. Which is 2 years from now. I really appreciate the advice guys, this has helped her make sure she get's what she's due. They wanted her to take early retirement and when she refused all this was now tabled. Knowledge is power

I'll bet that they put plenty of pressure on her to take early retirement instead of a medical board?

 

[Pitbull]

I'll bet that they put plenty of pressure on her to take early retirement instead of a medical board?

I assume so as she came to me asking me about it since they are trying to sell early retirement to her.

 

[Pitbull]

im assuming shes government. tell her to ask her pension department to do two quotes for the different scenarios. then decide.

my mom was a matron as well before retiring and she always mentions that resisted the urge to take early retirement and worked 2 extra years and got so much more money.

dude. I realize your mom is already retirement age. its 60 for women isn't it? 65 for men the last time I checked. if she is 60 there shouldn't be to many penalties.

Nope, she' in private healthcare.

 

[akescpt]

Nope, she' in private healthcare.

pity. still get them to do the calcs but first option is medical boarding then. wont affect her pension in any way.