The Charities Pensions Club (CPC) recently conducted a survey to explore how charities provide compassionate and effective support to employees and their families during times of early ill-health retirement or bereavement in accessing pension scheme and life assurance benefits.
This survey was initiated at the request of one of our members, The Church of England Pensions Board.
"We know that cases involving ill-health and bereavement are extremely sensitive, and require a lot of care. We are starting to look more closely at how we deal with these cases to not only ensure we meet best practice, but see if there are ways we can go one step further where we can. It would be great to know how other charities deal with cases like these so we can learn from each other." - Joel Ryan, Head of Engagement and Governance, The Church of England Pensions Board.
Key Findings
40% of charities reported having proactive, structured, and compassionate processes in place, coordinating support for employees and families during these difficult times.
60% of charities do not have a formal process in place to support employees and their families during ill-health retirement or bereavement. Support is often reactive, with HR leading the process and internal pensions teams providing technical input only when approached.
The following key practices reflect what the 40% of charities already active in this area are doing.
Many require little resource or cost.
We encourage you to review them and consider how your charity could adopt similar approaches to better support employees and their families through challenging life situations,
1. Internal Processes and Procedures
Clear, documented processes accessible to all relevant teams.
Internal coordination involving HR, occupational health, payroll, line managers, and pension teams, with rapid initial meetings and regular follow-ups.
Regular reminders to keep nomination forms up to date. *A common challenge identified was delays in accessing benefits due to outdated nomination forms. Charities adopting a proactive approach to encourage employees to regularly update nominee information and understand family dynamics can help reduce these delays.
Tailored retirement packs for early ill-health retirements.
2. Communication
Empathetic and personalised communication using a caring tone, accessible formats, and face-to-face meetings when appropriate.
Clear guidance on processes, next steps, and provider contact details.
Single points of contact to ensure consistent and knowledgeable support.
Sensitivity to individual and family needs, moving at their pace and keeping all parties informed.
3. Administrative Support
Assistance with documentation, such as certificates, medical notes, and liaison with pension or life assurance providers.
4. Wellbeing Support
Access to Employee Assistance Programmes (EAP), counselling, and occupational health for employees and their families.
Support for colleagues affected by the ill-health or bereavement of a team member.
5. Financial Support
Guidance from financial advisors and, where possible, advance payment of death-in-service benefits or income protection prior to pension access to help with costs.
6. In-House Training
Training for staff involved in supporting employees and families, with a focus on empathy, communication, and process knowledge.
Leveraging internal roles such as Employee Relations Specialists or Bereavement Counsellors to provide informed and compassionate support.
The Charities Pensions Club is always open to welcoming new members and sharing insights from surveys, events, and wider activities. For further information or to discuss the findings of this survey, please contact chloe@charitiespensionsclub.com
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