Ill Health Retirement in the New LGPS

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Ill Health Retirement in the
New LGPS
Andrew Knox Chief Pensions Officer (Operations)
25th March 2009

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Agenda

• Pre 1st April 2009 Arrangements
• Arrangements From 1st April 2009
• Ill Health Enhancements -Explanation of tiers
• Definitions
• Serious Ill health
• Paperwork and Process
• Appeals
• Deferred
• Open Forum

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Pre 1st April 2009 Arrangements

• Regulation 26 96 LGPS Regulations 1998
• Permanently Incapable of discharging the duties
  of that employment or any other comparable
  employment with his employing authority
• The scheme employer must obtain a certificate
  from an independent registered medical
  practitioner qualified in occupational health
  medicine. (No definition of independent)
• The scheme employing authority must obtain the
  approval of the administering authority to their
  choice of medical practitioner.
• Ill Health Enhancement based on members period
  of scheme membership

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Arrangements From 1st April 2009

• Regulation 20 LGPS Benefits Regulations
  Regulation 52 LGPS Administration Regulations
  2008
• First qualifying condition the members ill
  health or infirmity of mind or body renders the
  member incapable of discharging efficiently the
  duties of the members current employment
• The scheme employer must obtain a certificate
  from an independent registered medical
  practitioner qualified in occupational health
  medicine. (Now includes definition of
  independent).
• The scheme employing authority must obtain the
  approval of the administering authority to their
  choice of medical practitioner
• Enhancement based on potential service to age 65

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Ill Health Enhancement 2009

• Tier 1 - Employing authority determines that
  there is no reasonable prospect of the member
  obtaining gainful employment before the members
  normal retirement age the member is credited with
  the prospective service the member could have
  attained from date of retirement to age 65.
• Tier 2 - Employing authority determines that
  there is a reasonable prospect of the member
  obtaining gainful employment before age 65 the
  member is credited with 25 of the prospective
  service the member could have attained from date
  of retirement to age 65
• The ill health enhancement of a pre 1/4/2009
  member cannot be less than it would have been
  under the 1998 regulations.
• Third tier ill health enhancement exists outwith
  the LGPS in Scotland

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Definitions

• Permanently incapable means that the member will
  more likely than not be incapable until, at the
  earliest, his 65th birthday.
• Gainful employment means paid employment for not
  less than 30 hours in each week for a period of
  not less than 12 months
• Independent means the medical practitioner has
  not previously advised, or given an opinion on,
  or otherwise been involved in the particular case
  for which the certificate has been requested and
  is not acting, and has not at any time acted, as
  the representative of the member, the employing
  authority, or any other party in relation to the
  same case.
• Reasonable prospect, no definition given.

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Serious Ill Health

• Member with a life expectancy of less than one
  year
• Administering authority can pay a single lump sum
  to the member equal to 5 years pension
• No further death grant payable from the scheme
  for subsequent death in retirement
• Does not affect any dependants / partners
  entitlement to pension from the scheme on the
  death of the member
• Death grant for a death in retirement where no
  serious ill health grant paid is equal to 10
  years pension. (value judgement)
• Sensitive issue - Is the member aware of their
  life expectancy?

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Paperwork Process

• All post 31st March 2009 medical retirements must
  be submitted to Strathclyde Pension Fund office
  using the new S9 form and new S18 form
  downloadable from our website.
• Copies of the forms should be retained by the
  employing authority and the medical practitioner
  in the event of an appeal.
• Strathclyde Pension Fund Office do not require a
  copy of medical reports in support of the S9 and
  S18 forms but copies of such medical reports will
  require to be provided should the member raise an
  appeal.
• It is assumed that the process of considering
  re-deployment within the organisation or any
  issues under the disability discrimination act
  have been considered by the employer prior to
  termination of the members employment on either
  medical grounds or lack of capability.

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Appeals

• A member has the right of appeal against any
  decision of the employing authority or the
  administering authority that affects their rights
  under the scheme.
• The member has six months from the date of
  notification of that decision to lodge an appeal.
• The appeal must be submitted in writing , in this
  case to the specified person named by the
  employer who is responsible for that decision.
  Specified person must be independent.
• The specified person has two months within which
  to reach a determination in that case. (Must
  consult with SPFO)
• The employee has a further right of appeal to the
  Scottish Ministers if dissatisfied with the
  decision of the specified person.
• The Scottish Ministers may seek further medical
  opinion

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Deferred

• Pre 1st April 2009 Position
• Member assessed as being permanently
  incapable of discharging efficiently the duties
  of their former employment because of ill health
  or infirmity of mind or body
• Post 31st March 2009 Position
• Member assessed as being permanently incapable
  of discharging efficiently the duties of their
  former employment because of ill health or
  infirmity of mind or body.
• Medical Practitioner to assess whether that
  condition is likely to prevent the member from
  obtaining gainful employment (in local government
  or otherwise) before reaching the members normal
  retirement age, or for at least three years,
  whichever is the soonest.
• No Ill Health Enhancement

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Open Forum
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• Questions?