LGPS ill health retirement

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
7 replies 1.5K views
Chris_N_3Chris_N_3 Forumite
11 Posts
Hi

I am 32 and was fairly recently diagnosed with incurable cancer. My actual life expectancy is unclear as it depends on current treatment - a few years if this is working but very unlikely to be more than that.

I worked in local government for 7 years and have a deferred LGPS pension (first 18 months or so pre-2008, then left in 2013).

Since becoming ill, I've had a month off work from my current employer (a charity - DC pension, I've been there a year) and then have returned part time while having chemotherapy. I am keen to continue some form of work while I can, but this is now likely to be sporadic and current occupational sick pay will run out in a few months.

Could I apply for ill health retirement from the LGPS? I understand they can't stop me working in a non-local government job. Will my grim prognosis be enough or will they want to carry out a separate assessment? My old job was full time which I clearly couldn't do. Should I just apply?

I also understand my husband will no longer get a lump some on death if I take ill health retirement. However, I should be able to take a (slightly smaller) lump sum on retirement and on balance this seems more useful.

Thanks in advance.

Replies

  • I should add that I already understand I will only get a pension for my years of service as it is deferred - but every little helps.
  • hyubhhyubh Forumite
    3K Posts
    Eighth Anniversary 1,000 Posts
    ✭✭✭✭
    Could I apply for ill health retirement from the LGPS?

    Yes. You need to apply to your former employer rather than the pension fund/administering authority (and if the 'administering authority' of the fund is your former employer, then HR rather than Pensions).
    I understand they can't stop me working in a non-local government job.

    The standard applied is with regard to your old local government job, i.e. whether you are permanently incapable of doing such a job again.

    Short summary:

    http://www.lgps.org.uk/lge/core/page.do?pageId=278848

    Actual regulations (as you left in 2013, it will be the 2008 scheme regs that are applicable, or the 2009 ones if you were a member of the Scottish LGPS):

    http://www.legislation.gov.uk/uksi/2007/1166/regulation/31/made

    A potential fallback would be applying for early payment of benefits on 'compassionate' grounds. However, if that terminology comes up make sure it's put to one side because it refers to something else (e.g., if you were caring or a very sick spouse), and involves the former employer needing to apply their own standard rather than following a common one.
    Will my grim prognosis be enough or will they want to carry out a separate assessment?

    Probably the latter, but I wouldn't worry about it - as a council tax payer you'd want things done properly, no?
    I also understand my husband will no longer get a lump some on death if I take ill health retirement.

    Not exactly. Your death benefits will just become the death benefits for a pensioner rather than a deferred member.
  • Thank you so much for such a thorough reply. I've now looked again at the LGPS website in the 'pensioners' section and there is indeed still a death grant. I'm concerned about leaving him with a mortgage he can't afford so that's reassuring as that amount and the widowers pension would make a real difference.

    It sounds like I should just apply. I assume if I was turned down I could just apply again when my illness progresses further?
  • hyubhhyubh Forumite
    3K Posts
    Eighth Anniversary 1,000 Posts
    ✭✭✭✭
    Chris_N wrote: »
    I assume if I was turned down I could just apply again when my illness progresses further?

    Yes, that is correct.
  • SystemSystem Forumite
    177.9K Posts
    10,000 Posts Name Dropper
    ✭✭✭✭✭✭
    ################
    I also understand my husband will no longer get a lump some on death if I take ill health retirement. However, I should be able to take a (slightly smaller) lump sum on retirement and on balance this seems more useful.
    ################

    Hi

    You need to make sure that you take the maximum lump sum, and reduced pension.

    This gets the largest amount of money out of the fund for you.
  • A quick update:

    I had my medical with the independent doctor (employed by Capita) about 10 days ago. It was a bit difficult as my former employer hadn't passed on any details of my case, so I basically had to start from the beginning. I had fortunately brought additional copies of all the letters from specialists, etc.

    Anyway, the doctor did sign the certificate. I'm now waiting for my former employer to get back to me assuming they have approved on the basis of his recommendation.

    I am currently responding well to my treatment and hoping we can get the lump sum soon so we can plan a couple of trips over the summer.

    Thank you so much for your help.

    Chris
  • hyubhhyubh Forumite
    3K Posts
    Eighth Anniversary 1,000 Posts
    ✭✭✭✭
    Chris_N wrote: »
    Anyway, the doctor did sign the certificate. I'm now waiting for my former employer to get back to me assuming they have approved on the basis of his recommendation.

    I am currently responding well to my treatment and hoping we can get the lump sum soon so we can plan a couple of trips over the summer.

    Thanks for the update - hopefully it will be all sorted soon.
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals