British Steel Pension Scheme

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Incapacity Retirement

If you have not reached Normal Retirement Age and are unable to undertake any gainful employment due to physical or mental incapacity and are likely to remain permanently unable to do so you may be eligible to apply for Incapacity retirement.

You should apply to your Employer for Incapacity retirement. This form of early retirement is subject to medical assessment.

The value of your Incapacity pension is based on your Pensionable Service:

If you have more than 20 years Pensionable Service

If you have less than 20 years Pensionable Service

If at a later date the Trustee decides that the Scheme’s criteria for Incapacity has ceased to apply, the Trustee can decide that the pension shall be suspended.

Example of how Incapacity pension is calculated:

Member aged 55 with 9 years pensionable service
Assume Final Pensionable Earnings £25,000 p.a.

Pensionable Service at Retirement

9 years


9 years

Total Pensionable Service

18 years

Incapacity Pension
(18/60 x £25,000)

£7,500 p.a.