Ill health retirement

If you have to leave work due to illness you may be able to receive immediate payment of your pension benefits

To qualify, you must have

• 2 years of continuous membership in the LGPS 
• a report from an independent health physician (appointed through your employer) which states that you meet the criteria of one of the tiers 

Ill health retirement can be paid at any age and are not reduced on account of early payment. Your benefits could be increased to make up for your early retirement, depending on the tier.

Levels of ill health retirement

• Tier 1 - if you are assessed as being unlikely to be capable of gainful employment* in your lifetime, benefits can be paid in full, as if you worked to your Normal Pension Age
• Tier 2 - if you are assessed as being unlikely to be capable of gainful employment* within 3 years of leaving, but are likely to be capable of undertaking such employment before your Normal Pension Age, ill health benefits are based on the pension you have already built up in your pension account at your date of leaving the scheme plus 25% of the pension you would have built up 
• Tier 3 - if you are assessed as being likely to be capable of gainful employment* within 3 years of leaving, or before your Normal Pension Age if earlier, ill health benefits are based on the pension you have already built up in your pension account at leaving. Payment of these benefits will be stopped after 3 years, or earlier if you are in gainful employment or become capable of such employment, provided you have not reached your Normal Pension Age by then. 

*Gainful employment means paid employment for not less than 30 hours in each week for a period of not less than 12 months. It is assessed on capability grounds rather than on a basis of an individuals skills or the economic conditions.

How to request ill health retirement

We are unable to arrange quotations on behalf of members.

Ill health retirement is an employer-led decision. If you feel you are unable to meet the duties of your employment due to health grounds, you should approach your line manager or your HR/personnel contact to discuss the matter and they will advise on the next steps.

If you have been certified by an independent health physician (appointed through your employer), and have met one of the above tiers, then your employer will contact us with your ill health retirement request.

We will write out to you with the ill health retirement quote and claim forms within 5 days of receipt of your retirement notification from your employer (and AVC fund value, if applicable).

When you return your completed retirement forms

• monthly pension payment will be made to your nominated bank account at the next payroll cycle
• if you have a lump sum, this will be paid within 15 working days in receipt of your retirement form
• your pay date is the 25th of each month (or the last working day beforehand, if it falls on a weekend or Bank Holiday)