Ill health retirement

To qualify for ill health retirement you must have at least 2 years pensionable membership in the Local Government Pension Scheme (LGPS), an Occupational Health Physician must verify that you are unable to work due to illness and your employer must confirm that you meet the criteria for retirement on ill health grounds. You can retire due to ill health irrespective of your age providing the above has criteria has been met.

The first step is to speak to your Human Resources Department. The Cornwall Pension Fund can not provide you with ill health retirement figures until your employer confirms that you meet the criteria for an ill health pension.

Tier 3

If Occupational Health certify that you are permanently incapable of working but are likely to be able to undertake gainful employment within three years, you will receive a tier 3 pension, based only on the amount of service you have accrued (no enhancement). Tier 3 is a temporary pension payable for a maximum of 3 years, the pension will cease if you commence employment of at least 30 hours per week. The payment of a tier 3 ill health pension will be reviewed after 18 months to determine an ongoing entitlement to payment.  At this point the occupational health physician can decide that your pension remain on the same tier, increase to tier 2, or cease completely if your health has improved.

Tier 2

You will meet the criteria of tier 2 if it is deemed that you will be unable to undertake gainful employment within three years of leaving but it is likely that you will be able to obtain employment before reaching your normal pension age. Your ill health pension will be based on your accrued membership, plus 25% of the tier 1 enhancement described below.

Tier 1

If Occupational Health find that there is no reasonable prospect of you returning to work before you reach normal pension age, your pension will be enhanced by adding the amount of pension you would have accrued had you continued in employment until your normal pension age.

  • Your pension benefits may not be eligible to be increased if you have previously been awarded an ill health pension under the scheme.
  • If you were paying additional regular contributions, these will be deemed to be paid in full.
  • Ill health pensions are increased each year in line with the consumer prices index

If you retired on the grounds of ill health and are in receipt of your pension, you may wish to view our pensioner pages.

Our Jargon Buster may help with pensions terminology.