If a former employee has left the Local Government Pension Scheme (LGPS) and falls seriously unwell, they may be eligible to receive their pension benefits unreduced on grounds of ill health, no matter their age.
The conditions for early payment depend on when the member left the LGPS.
Members who left the LGPS before 1 April 2008
The former employee must:
- be permanently incapable by reason of ill health or infirmity of body or mind of discharging efficiently the duties of their former employment.
Members who left the LGPS between 1 April 2008 and 1 April 2014
The former employee must:
- be permanently incapable by reason of ill health or infirmity of body or mind of discharging efficiently the duties of their former employment.
- have a reduced likelihood of carrying out any gainful employment before age 65 (or for at least three years, whichever is sooner).
Members who left the LGPS after 1 April 2014
The former employee must:
- be permanently incapable by reason of ill health or infirmity of body or mind of discharging efficiently the duties of their former employment.
- have a reduced likelihood of carrying out any gainful employment before state pension age (or for at least three years, whichever is sooner).
Gainful employment is defined as paid work for at least 30 hours per week, for a period of no less than 12 months.
The member can receive full payment of their deferred benefits. There will be no reduction for early payment, and no enhancement. There is no tier system for ill health retirement from deferred status.
A deferred member of the LGPS would need to apply in writing to the Cornwall Pension Fund if they wish to request payment of their deferred pension on ill health grounds.
We will arrange for:
- the initial application forms
- the relevant medical certificate (OH3)
To be sent to you so you can refer the former employee to an Independent Registered Medical Practitioner (IRMP).
The OH3 certificate required for deferred members is dependent on which Pension Scheme regulations apply to the member’s benefits.
Please do not use the active employee OH3 certificate.
Once you receive the documentation from the Fund you must refer the member to an IRMP. The IRMP will:
- Assess whether the employee meets the criteria for ill health retirement.
- Complete the OH3 certificate to certify their findings.
The Pension Fund does not supply a list of recommended IRMPs, so you will need to ensure whoever you choose for this role is:
- registered with the General Medical Council and holds a diploma in Occupational Health medicine (D Occ Med) or;
- an equal qualification issued by a competent authority in a European Economic Area (EEA) state. Or;
- is an Associate, a Member or a Fellow of the Faculty of Occupational Medicine or an equal institution of a European Economic Area (EEA) state. The OH3 certificate the IRMP signs confirms this is the case.
Once the OH3 certificate and the supporting documentation are completed and returned, you as the former employer have the responsibility for deciding if the member’s pension can be paid on ill health grounds.
Informing the Fund
If you decide not to release the pension on ill health grounds, please:
- send the former employee confirmation of your decision.
- provide a copy of the correspondence and a copy of the completed OH3 certificate to Cornwall Pension Fund via pensions@cornwall.gov.uk.
If you decide to release the pension early on ill health grounds, please contact Cornwall Pension Fund via pensions@cornwall.gov.uk with:
- a copy of the completed OH3 certificate and;
- a copy of the correspondence informing the former employee of the award of ill health pension
and we will contact the former employee with their pension options.
The Local Government Association has training available on ill health retirement for deferred members that you may find beneficial.