Hi all,

Wanted to run this by you all for a bit of input.

Lady takes ill and is off work. She gets full pay for first 6 months and then goes onto IB. As part of her contract of employment, she also receives a substantial amount from a health insurance plan from her employers. I need to confirm whether or not she contributes to this health insurance (disregard if she has contributed more than 50% of premium).

She has been on this for quite some time now, and only recently realised that she may have had to face deductions from her IB for half of anything over £85. Looking at s. 30DD of the Contribs and Ben. Act, and reg 20 of the IB regs, it seems the payments from the health insurance will only come within the definition of a pension payemnt if the payments under the insurance policy are in connection with physical or metal ilnness, etc, etc "in relation to a former employee on the termination of his employment".

My reading would be that she would not be facing any deductions as the payments under the insurance are not being made at the terminaition of employment; she is still employed.

Any ideas?

Thanks,

Lee