If you have to leave employment for health reasons you need to contact your employer as you may be entitled to the immediate payment of your scheme benefits on grounds of ill-health. These benefits could also be subject to significant enhancement.

How is an ill health pension calculated?

If you have at least three months total membership or have transferred other pension benefits into the Local Government Pension Scheme (LGPS) and you have to give up work because of illness, you may be able to receive the immediate payment of your benefits. To qualify for ill health benefits, a medical practitioner appointed by your employer, must be satisfied that:

• you are permanently incapable of doing your job due to ill-health or infirmity of mind or body, and
• that you have a reduced likelihood of obtaining gainful employment before reaching age 65.

The medical practitioner must be qualified in occupational health medicine and must not have previously been involved in your case.

Tier 1

If you have no reasonable prospect of being capable of obtaining gainful employment before age 65, the pension payable will be based on accrued membership + 100% of prospective membership between leaving and age 65.

Tier 2

If you have no reasonable prospect of obtaining gainful employment within 3 years of leaving but are likely to be capable before age 65, the pension payable is based on accrued membership + 25% of prospective membership between leaving and age 65.

Tier 3

A short-term reviewable pension is payable based on accrued membership only where you are likely to be capable of obtaining gainful employment within 3 years of leaving. Tier 3 pensions cease when gainful employment is found and in any case may not be paid for longer than 3 years. Your former employer is required to review payment at 18 months and may subsequently determine that your pension should cease if you are deemed capable of gainful employment, or, if your condition has deteriorated, may determine that a tier 2 pension may be awarded.

There is an ongoing underpin for certain existing older members (aged 45 or over on 31st March 2008).

For more detailed information about ill health retirement, please refer to the Ill Health Retirement (PEN17) fact sheet available on the Scheme guides/leaflets page.