Ill Health Retirement

If you have been in the scheme for at least 2 years (or you have transferred previous service from another scheme) and you have to leave your employment for health reasons, you may be eligible to receive your pension benefits immediately on the grounds of ill health regardless of your age.

In order to qualify for ill health retirement, your employer, based on the opinion of an approved Independent Registered Practitioner (IRMP), must be satisfied that:

  • You are permanently incapable of carrying out the duties if your job
  • You have a reduced likelihood of being capable of getting gainful employment* elsewhere because of your incapacity.

If you are eligible to retire on the ground of ill health, the level of pension benefit you will receive will depend upon how likely you are to be capable of obtaining gainful employment after you leave. This is categorised in 3 tiers as follows:

Tier 1

If you have no reasonable prospect of being capable of obtaining gainful employment* before age 65, your pension will be based on:

  • The pension benefits that you had accrued up to the date of leaving, plus
  • The pension benefits that you could have accrued between the date of leaving and your normal retirement age.

Tier 2

If you are unlikely to be capable of obtaining gainful employment* within 3 years of leaving but may be capable of doing so before your normal retirement age, your pension benefits are based on:

  • The pension benefits that you had accrued up to the date of leaving, plus
  • 25% of the pension benefits you could have accrued between the date of leaving and your normal retirement age.

Tier 3

If you are likely to be capable of obtaining gainful employment* within 3 years of leaving, your pension benefits are based on:

  • The pension benefits that you had accrued up to the date of leaving.

However, under tier 3, your case will be reviewed after 18 months by your previous employer to assess whether your condition has improved or deteriorated. If your condition has improved and you are capable if undertaking gainful employment, your pension will cease. If your condition has deteriorated, you may qualify for Tier 2 benefits.

If you retire under Tier 3 ill health and you become re-employed within 3 years of retirement, you must notify your previous employer so that they can assess whether the employment is classified as gainful employment*.

If you retire on the grounds of ill health and you were age 45 or over on 31/03/2008, there are protections in place which ensure any enhanced benefits you receive under Tier 1 or Tier 2 will not be less than the enhancement you would have been entitled to receive under the Local Government Pension Scheme Regulations in force up to 31/03/2008.

When you retire you will be required to complete a retirement form before your benefits can be paid.