Should I apply for ill health retiral? Long post

Susan1962

Hi. hoping for some help with this decision.

I'm currently working 4 days a week, reduced from full time due to multiple health issues. I'm 57, due LGPS and SP at 67.

Following four months sick leave I've been asked if I want to apply for ill health retiral but am unsure if it's the right thing to do right now?

Current salary £28,400 approx paid4 weekly (approx 325 per week after deductions, including AVC); private pension of £790 paid monthly (about £12-13 per week) and have just been awarded standard rate PIP for 3 years £57ish a week. As this would have to be reviewed in 3 years' time, I'm not including it in any retirement planning and will put it into the emergency fund until such time ...
The LGPS website states that ill health retirement would give me £14,000 a year to live on. If I work till 60 it would be £10,000 or at 67 £17,000.

My health is such that I will not be able to continue full term.

So the ill health option seems best BUT - if I apply and am refused can they use my health as an excuse to get rid of me without the pension?

Hope this makes sense?

Thanks in advance!

Brynsam

Applying for ill health retirement makes no difference to your capability to do the job. Who has suggested you apply - your employer, or a doctor, or someone else?

Susan1962

Thanks. It was my line manager. shes be n dropping hints about my not being fit to do the job any more. Just made me a bit jittery I suppose.

Silvertabby

The next stage would be a medical arranged by your occupational health department. The independant Dr will then say if he/she recommends ill health retirement and at what level (Tier 1, 2 or 3).

If the occ health Dr doesn't consider that you meet the ill health criteria then, yes, your employer could still dismiss you on incapability grounds. If that happens you will still be able to access your LGPS pension, as you are over 55 - but there would be no ill health enhancement and you would take the full hit in respect of early retirement actuarial reductions.

hyubh

Susan1962 wrote: »

The LGPS website states that ill health retirement would give me £14,000 a year to live on. If I work till 60 it would be £10,000 or at 67 £17,000.

Keep in mind there are three 'tiers' of ill heath retirement in the LGPS:

https://www.lgpsmember.org/tol/thinking-leaving-illhealth.php

if I apply and am refused can they use my health as an excuse to get rid of me without the pension?

Well it is perfectly possible to be made redundant because ill health means you can't fulfil your job, yet not meet the criteria for an LGPS ill health retirement. In addition, it is the employer's decision in both cases. So long as you believe you fulfil at least the tier 3 criteria however, this shouldn't put you off.

Edit - Silvertabby beat me to it!

Susan1962

Thanks Silvertabby and hyubh. I'm a bit less anxious now. I've been in the pension scheme for 21 years, so can't be disallowed on that basis. I came Home to a letter from my employers doctor saying that he would support an application based on current and previous ill health. He is requesting an assessment from the pension company's GP so there's a way to go yet. He also mentions Tiers 1 and 2 so that sounds hopeful. As you said hyubh I think I meet the criteria so I won't be put off. I'll go forward with the assessment - fingers firmly crossed!

Brynsam

hyubh wrote: »

Well it is perfectly possible to be made redundant because ill health means you can't fulfil your job,

Wouldn't be redundancy, though - it would be (in)capability.

Susan1962

Thanks Brynsam!