Legal & General has launched a group income protection product for employers that run defined contribution (DC) pensions to cover employees forced to retire early on grounds of ill health.
Workplace Recovery pays an agreed income either directly to the employee or to the employer, if ill health forces them to retire early, until they reach normal retirement age, with capital sum options available.
Glenn Laming, group protection sales director at Legal & General, said the product is designed to replicate some of the benefits available to members of final salary schemes that need to retire through ill health, but which are not available to those in similar circumstances who are members of DC schemes.
It typically costs about 1% of payroll and also covers employer and employee pension contributions, national insurance contributions, independent medical assessments and continuation of life cover where this is insured through Legal & General. Primarily an employer-paid benefit, it can also fit within a flexible benefits scheme.