LGPS ill Health Retirement

dibble34

Hi all, first post so be gentle . I have a question about my lgps scheme and wondered if anyone can help. I am 40 and was diagnosed with an auto immune disease 10 years ago and it is looking like I am going to heave to go part time as I am getting worse and really struggling. There is no cure for my condition, just drugs to slow it down. It is not directly life threatening (I hope!!!!!)

Anyway I have also been looking at my pension as it seems to offer ill health retirement if I am unlikely to be able to wok 30 hours a week or more in the future. I am probably going down to 20 hours and think the doctors will be happy to say this is permanent,

Requirements for ill health are

(1) The first condition is 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.
(2) The second condition is that the member, as a result of ill-health or infirmity of mind or body, is not immediately capable of undertaking any gainful employment.

Gainful employment is classed as 30 hours or more for 12 months which I am pretty sure I could meet. It is point 1 I am struggling to find any details about. Does the same 30 hour rule apply to my current Job? I do desk work so don't think they can say I could do another job. Point 1 just seems so vague!

So confused, but want to consider all my options. I would rather work part time than retire, but I would be better off retiring from a financial perspective.

If anyone knows more or can offer advice I would be every grateful

Thanks

Silvertabby

With the LGPS, there are 4 levels:

3 levels of ill health retirement which give immediate access to LGPS benefits

Dismissal on the grounds of ill health, whereby pension benefits are deferred in the scheme in the same way as an early leaver.

You would need to be assessed by an Occupational Health Dr, who will confirm which level of ill health applies. If, as you say, you can currently work for 30 hours per week then you are unlikely to meet the criteria for ill health retirement.

I do hope I'm not coming across as too harsh, but ill health retirements - especially Tier 1 - are awarded only in the most serious cases.

dibble34

Thanks silvertabby, yes understood it is not easy. Just strikes me that if work agree I can do less than 30 hours a week because of my condition then I am also potentially meeting this requirement. Just looking at all or my options and aware I would need tier 1 which is hardest to get.

I am saying I don't think I can work 30 hours anymore, probably 23 max. I have been doing 37 badly for some time now and currently signed off by doctor.

Silvertabby

I do sympathise, but it would be unfair for me to encourage you to apply for Tier 1 (Tiers 2 or 3 would be no good to you at your age) when it sounds like that you currently don't meet the criteria.

Before going down the Occupational Health route, could you run this past your own GP and see what he/she says? You would need to make it quite clear that Tier 1 ill health benefits would only be awarded in the event that the Occ Health Dr confirms that you are incapable of working again full stop.

Good luck.

dibble34

Its ok and thanks. I am under a consultant at the hospital and have very good doctor. I am simply asking does the 30 rule applies to my current job too? If my consultant and doctor both confirm I am no longer capable of working full time then in my mind I do potentially meet the criteria assuming 30 hours applies to my current job. I am not asking for encouragement as would be unfair as I have not explained my condition or background in enough detail for anyone to make that call. I just wanted more info on requirement one if anyone knows or has experience of the process.

Silvertabby

I'm a retired LGPS administrator, but I've just had a look at the current regs. They do seem to indicate that Tier 1 is a possibility for someone who cannot meet the terms of gainful employment (ie, at least 30 hours per week) but stress that the Occ Health Dr would have to certify that you are deemed to be 'permanently incapable'.

You may find that different Local Authorities have different interpretations of the rules - for instance, in the one I worked for, Tier 1s tended to be for terminal cancer and other serious illnesses. It sounds like your own medical team is supportive - would they be willing to send their opinions to the Occ Health Dr for consideration?

I'm not a medic, so I wouldn't be able to make the call even if you did post details of your condition - but I have some experience of auto immune conditions as my late sister had lupus, and I wouldn't wish that on anyone. Take care.

dibble34

Thank you that is very kind to take a look. I was a little surprised by the criteria myself if I am honest and assumed you would need a similar fate as you have mentioned. I met with Citizens advise this morning who think reading all the info and my medical history that it is reasonable to apply. My doctor has confirmed she will write that I am no longer able to work full time because of my condition as will my nurse. I am seeing my consultant at the hospital in April and will be asking them to do the same before I apply. If they will also write that I am not longer capable of a 30 hour week I will look at my options. My pension provider has confirmed I can put in for early retirement while working still, so I may reduce my hours as planned and then look to apply for this and see what happens. If i don't qualify for tier 1 then hopefully I will manage better working part time and be able to stay in work a bit longer.

Silvertabby

My pension provider has confirmed I can put in for early retirement while working still, so I may reduce my hours as planned and then look to apply for this and see what happens. If i don't qualify for tier 1 then hopefully I will manage better working part time and be able to stay in work a bit longer.

As you are under 55, you would only be able to access your pension benefits on the grounds of ill health, not early retirement. You could, as you say, just reduce your hours, but would you be able to manage on this reduced income? Whatever you do, don't be tempted to save money by opting out of the LGPS - should you be awarded Tier 1 in the future, the difference between ill health from deferment and ill health from current membership status at your age is enormous.

dibble34

Sorry I meant ill health, not early. No I wont opt out if don't get it. We could just about manage, but would be tight. However at least my children might get their dad back a bit and for me that is more important than money. Plus of entry and stay full time I think I may get into trouble at work. One annoying thing is if I reduce my hours on medical grounds they won't actually confirm if it will be topped up to my full time equivalent until I retire. That could be 10-15 years of not knowing if my pension will be 15k or 35k.

System

Hi

Just to re-inforce...

While you are a member of the LGPS, active or deferred, you can apply for "ill health" retirement.

Even if you have left your current employer and work in the local newsagents or not working at all.

Below is an old extract and may not be relevant, but you could still ask about compassionate grounds for an early release of benefits.

Compassionate reasons for early retirement
Where the Employer certifies that the employee has retired early for ‘compassionate reasons’ the reduction in employee benefits may be waivered and the Employer is not required to reimburse the fund. The Employer's policy on this matter is to agree to such ‘compassionate’ cases where an employee is required to care for a sick or disabled spouse or very close relative to an extent that prevents them from working. The same policy applies to a former employee whose benefits have been frozen and who then seeks immediate payment of their pension on compassionate grounds.

Silvertabby

One annoying thing is if I reduce my hours on medical grounds they won't actually confirm if it will be topped up to my full time equivalent until I retire. That could be 10-15 years of not knowing if my pension will be 15k or 35k.

The rules say that if you reduce your hours on medical grounds and are then awarded ill health retirement for the same medical condition, then your enhanced pension would be based on your full time equivalent pay. However, if you are thinking 10 years ahead then you may have a problem proving that you have the same medical condition, as 'they' could argue that you didn't originally meet the criteria for ill health, but dropped your hours voluntarily.

If you stay full time, could your line manager make any adjustments to your working practices which may help? If your line manager won't play ball, then Occ health could make the determination for you.