What is Disability Pension?
Disability pension is a kind of pension given to the kinds of people who are permanently or temporarily unable to work because of physical or mental disability. It can also be explained as a retirement amount which is paid to an individual who hold disability pension plan and fulfills the requirement for receiving monetary benefits. This takes form of early entry in the retirement plan for a disabled people below the age of retirement as well as retired employees.
This kind of pension fund is created by government and other institutions such as employers association or trade union based on the rules and regulations of the company. Employers generally provide two kinds of disability pension coverage; they are through their governed and qualified retirement plan and coverage through stand-alone short and long term programs. Some disability pensions are given to government employees in the form of tax-advantage manner where only lower and sometimes no federal or state taxes are paid.
A person is eligible to receive disability pension fund if he/she has been disabled for about six months and is diagnosed by certified physician that he is disabled. At such times, a person who fulfils all of the necessary requirements of the disability plan is bound to receive the pension benefits for the whole period of being disabled.
At the time when armed forces personnel is out of service or has been unable to work during his tenure period then he is entitled with disability pension which includes service and disability elements. A minimum year of service is allocated for disability retirement benefit. The money to be received by the retiree or the amount of pension is based on the years the employee has worked and the retiree can work earlier but he/she is subject to receive an equitable pension amount based on the years of service.