The following process is to be used, if you are intending to dismiss a Local Government Pension Scheme (Scheme) member on:
- ill health/capability grounds
Referral to a medical practitioner
The member must be referred to a qualified Independent Registered Medical Practitioner (IRMP). They will assess the them for potential ill health retirement against the LGPS regulations.
The IRMP must provide a completed OH3 certificate.
They must not:
- have previously advised or,
- given an opinion on or,
- been involved in the particular case for which the certificate has been requested.
Narrative Reports
The Pensions Ombudsman Service (TPOS) have highlighted the importance of employers in obtaining:
- a narrative report from the IRMP in dealing with ill-health retirement cases.
Narrative reports help employers to understand the reasoning behind the medical opinion the IRMP has given.
As the decision to award an ill-health retirement is that of the employer, a full understanding of the IRMP's reasoning will be important. This minimises the risk of you:
- making a poor or flawed decision, resulting in a mal-administration claim from a member
You should make it clear at the time of commissioning the IRMP to provide a medical opinion, that you need a narrative report
Implementing the decision to award ill health benefits
If the IRMP provides an opinion that the member meets the conditions set out in the LGPS regulations that the member is;
-
As a result of ill-health or infirmity of mind or body, permanently incapable of discharging efficiently the duties of the employment the member was engaged in and that the member;
-
As a result of ill-health or infirmity of mind or body, is not immediately capable of undertaking any gainful employment
As the scheme employer:
- you decide whether to award an ill-health retirement benefit
- you decided which tier to award according to the likelihood of undertaking any gainful employment.
An active member who:
- has qualifying service for a period of two years and
- whose employment is terminated by an employer on the grounds of ill-health
is entitled to, and must take, early payment of a retirement pension.
The amount of retirement pension that a member who satisfies the conditions above receives is determined by which of the benefit tiers that member qualifies for.
Ill Health Retirement Training
The Local Government Association has training available on ill health retirement that you may find beneficial, this training covers the ill health retirement process for both active and deferred members.
