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Retirement Allowance is tax-free and is payable under the Industrial Injuries Scheme. It replaces Reduced Earnings Allowance for customers who have reached pension age and have given up regular employment.
Replaces Reduced Earnings Allowance for a customer who:
- reaches pension age after 1 October 1989; and
- gives up regular employment after reaching pension age; and
- was receiving Reduced Earnings Allowance at £2.00 per week or more.
Entitlement is automatically considered when Reduced Earnings Allowance customers, who have reached pension age, give up regular employment.
Abolished on 1 October 1990, except for existing Reduced Earnings Allowance/Retirement Allowance beneficiaries or when entitlement arises before abolition. Amendment regulations brought in from 24 March 1996 ensure that Reduced Earnings Allowance recipients over pension age, who have given up regular employment, transfer to Retirement Allowance. Those already over pension age transferred to Retirement Allowance immediately and others will transfer when they attain pension age.
How long can it be paid for?For life.
Rates of Retirement Allowance Effective from 9 April 2008
£13.68 Maximum rate
Payable at 25% of the customer's previous rate of Reduced Earnings Allowance provided it was at least £2 per week subject to maximum.
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