Ill health retirement (LGPS)

If you’re unable to work due to ill health, you may be able to take your LGPS benefits early regardless of your age.

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Do I qualify?

If you’re actively paying into the LGPS, you must meet the following criteria to qualify for an ill health pension: 

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You must have met the two-year vesting period.
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Your employer must be satisfied that you are permanently unable to do your job until your Normal Pension Age.
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Your employer must be satisfied that you are not immediately capable of taking on gainful employment.

Gainful employment

This is paid work for at least 30 hours a week for one year. 

Types of ill health pension

There are three types of ill health pension (known as ‘tiers’).

These are based on how likely it is that you could carry out gainful employment before your Normal Pension Age (NPA) in any job. The tier you’re awarded will determine what pension benefits you’ll get and how long for.

Your employer ultimately decides which tier you qualify for, as long as you meet the three initial criteria explained above and all the criteria for a particular tier. But before they decide, your employer must get the opinion of an Independent Registered Medical Practitioner (IRMP).

What will the medical practitioner do?

Independent Registered Medical Practitioner (IRMP)

An IRMP is a health professional approved to carry out medical assessments for pension purposes.

Because your employer is not a medical expert, they must get the opinion of an IRMP to assess you, before they decide if you qualify for ill-health retirement.

In their assessment, the IRMP will use information given by your GP, consultants and employer. Usually, you won’t need to meet with the IRMP. But sometimes, they may ask to speak to you directly, either in person or over the phone. If you would prefer to see them in person, you can request this through your employer (although this is not always possible).

If you provide detailed information and give consent for your GP/consultant to share your medical records, you may not need a face-to-face assessment. You can say no to giving consent but it’s unlikely the IRMP will have enough information to assess you.

A typical assessment can take between 4-12 weeks, depending on your individual circumstances. Once the IRMP completes your assessment, they will pass on a medical certificate to your employer, confirming whether you meet the ill health retirement criteria. They will also give an opinion on which tier reflects your situation.

How are my benefits calculated?

Working out your pension benefits depends on when you joined, how many years you’ve been an LGPS member and your final salary when you retire. 

Tier 1 benefits

These are calculated by looking at your current pension and adding an ill health enhancement, based on the extra money you would have accrued if you continued contributing up to your Normal Pension Age. 

Tier 1 benefits

These are calculated by looking at your current pension and adding an ill health enhancement based on the extra money you would have accrued if you continued contributing up to your Normal Pension Age. 

Tier 2 benefits

These are calculated by looking at your current pension pot and adding an ill health enhancement based on 25% of the extra money you would have accrued if you continued working up to your Normal Pension Age.

Tier 2 benefits

These are calculated by looking at your current pension and adding an ill health enhancement based on 25% of the extra money you would have accrued if you continued working up to your Normal Pension Age. 

Important to note if you’re retiring on Tier 1 or Tier 2

In some cases, your ill health pension will be calculated differently. If you have previously received an ill health pension and retire again due to ill health, your pension may not be increased or may be capped. Visit the LGPS website for more details on the rules covering these special cases.

Tier 3 benefits

These are calculated based on your current pension pot (without any ill health enhancements).

They are payable for up to three years but may be stopped if you start a new job or the IRMP decides you’re capable of working following your 18-month review. Once your Tier 3 pension has stopped, it will normally become payable again from age 55 onwards.

Just remember, if you take it before your Normal Pension Age, your pension will be reduced.

Ill health retirement and deferred pensions

You don’t have to be an active member of a pension scheme to claim your pension on ill health grounds. If you’ve left employment and have a deferred LGPS pension, you can still apply for your benefits to be paid early due to ill health.

Unlike retirement from active employment, there is no three-tier system for ill health and no enhancement benefit would be paid to you if you took your deferred pension early due to ill health. However, your pension would not be reduced in the same way that it would if you chose to voluntarily take out your benefits before your Normal Pension Age.

Ill health retirement: overview

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Retirement: overview

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