NHS PENSION: EARLY RETIREMENT ON MEDICAL GROUNDS ON FULL PENSION

bkmla

My friend is an auxiliary nurse working for the NHS in Scotland and has paid into a pension scheme over a number of years. 

Unfortunately, he isn't a member of a union so can't seek advice from one.

He is five years from retirement (66).

A few years ago he suffered a couple of strokes and is struggling at work. He feels unable to do his present job or any other job.

His superviser appears to be gently coaxing him into retiring early.

What would be the most efficient way of applying for early retirement on medical grounds on full pension?

Obviously, a supporting letter from his GP would help.

Would his supervisor/human resources be in a position to supply him with a letter stating that he is deemed not competent to do his job?

Step-by-step, what would be the procedure regarding applying for early retirement?

JoeCrystal

Here: https://pensions.gov.scot/nhs/life-events/i-am-ill-or-injured

Please look under How to apply section. There is no "most efficient way"; there is only a single way, and all processes and forms must be filled out and endless loops to jump through.

Here is the relevant section from the website I linked

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If you're an active member of the scheme and have at least two years’ qualifying service, you should approach your employer to discuss whether they would support your claim for ill-health retirement.

If they do, you'll be given an Application for Ill Health Benefits form, which you'll need to complete with your employer. This form must then be submitted to SPPA accompanied with a Medical Report form, completed by Occupational Health, and any supporting medical evidence, such as GP and consultant reports.

If Occupational Health will not support your application and complete the Medical Report form this can be completed by a GP or specialist clinician. A completed Application for Ill Health Benefits form along with additional information required by our medical advisers (such as job description, sickness absence records) must be sent to us through your employer.

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However, is there any reason why he cannot retire early already? if I was highly cynical about the supervisor's motive, he/she meant just taking early retirement rather than ill-health retirement? Anyway, your friend will need to do proper research on Ill-Health retirements and do everything correctly.  As he is already 61 or 66 (not sure there), he may find Ill-Health retirement only really means his current accrued pension will get paid out without any actuarial reduction. I do wish him luck in his attempt!

Flugelhorn

agree this all needs to go through occ health and is a complicated procedure and no quick way round it. he can take is pension now with some reduction and that may be worth considering anyway of he can't get ill health pension

Bigphil1474

Depends on length of service.  I'm in the similar LGPS and ill health retirement used to be quite tough to get through. Usually Tier 1 ill health retirement pays the most (in the LGPS scheme), down to Tier 3. For the LGPS, it usually requires an independent assessment, not just a letter from the doctors. Given his age, the assessment would likely not be as onerous. They have to basically assess whether the person is likely to be able to work, may be able to work at some future point, or is never going to be capable of work. If they are in that bad a shape at that age, then getting Tier 1 should be easier. 

There may be an option of early retirement through any voluntary scheme the employers have. In my experience this can be at a similar level to ill health retirement. There is some reduction, but basically the employer makes up their contributions to state pension age, so the main loss is from employee contributions. At his age, this is relatively low cost for the employer. 

The last option he should consider is just leaving and taking his pension, as this would be the lowest amount. If he has a very long service, it may be an amount that is acceptable to him though. 

For ill health retirement, he needs to speak to HR as JoeCrystal provided. If his manager supports this, then they should get the ball rolling. Once agreed, then they will get ill health retirement. There's usually no option to reconsider though - if you go through all that and they deem you not fit to work, it's difficult to say you're not going because the amount of pension is too low. 

If he decides to look at voluntary early retirement, he would normally have to get agreement from the employer, who would request figures from the pension scheme, and he can then decide whether to proceed or not. If he wants to just quit, he can ask for his figures from the pension provider and decide whether he wants to proceed. On the last 2 options, he should seek independent financial advice (which the union would provide if he were a member).

Bobinyorkshire

My wife got Tier 1 NHS Ill health retirement after collecting medical evidence and seeing the OH doctor. What I would say is don’t give up. Her 1st request was turned down, largely as they did not review all the evidence and only used an algorithm for her latest problem only. On appeal, it seemed the data was more thoroughly reviewed by a more experienced assessor, whose conclusions were more based on the latest evidence provided by the OH doctor. It was a relief as the Trust she worked at dismissed her when she applied, as this was a standard policy when a request for Ill health retirement is made regardless of the outcome (ps not all Trust do this, but this one did). HR stated that if you are saying you’re not up to the job, then they have no choice. Bit of a worry if you cannot afford to leave without knowing if it’s been approved.

hyubh

Bigphil1474 said:

Depends on length of service.  I'm in the similar LGPS and ill health retirement used to be quite tough to get through. Usually Tier 1 ill health retirement pays the most (in the LGPS scheme), down to Tier 3. For the LGPS, it usually requires an independent assessment, not just a letter from the doctors. Given his age, the assessment would likely not be as onerous. They have to basically assess whether the person is likely to be able to work, may be able to work at some future point, or is never going to be capable of work. If they are in that bad a shape at that age, then getting Tier 1 should be easier. 

I'd be careful on some of the details. The NHS pension scheme has two tiers of ill health, rather than three like the LGPS - and confusingly, tier 1 is the less generous NHS tier, whereas tier 3 is the least generous LGPS tier. (That said, I see SPPA's member site uses the terms 'lower tier' and 'upper tier', which is sensible!) 

There may be an option of early retirement through any voluntary scheme the employers have. In my experience this can be at a similar level to ill health retirement. There is some reduction, but basically the employer makes up their contributions to state pension age, so the main loss is from employee contributions. At his age, this is relatively low cost for the employer. 

Employer-led early retirements in the LGPS (i.e. made redundant or retired for reasons of 'business efficiency' aged 55 or over) cancel what would otherwise be the actuarial reduction involved in a voluntary early reduction before NPA. The employer payment to the pension fund (the 'strain charge' in LGPS jargon) covers that, rather than purchasing additional service to NPA. The NHS Scotland arrangements are similar-ish to that, notwithstanding there being no pension fund to reimburse.

mick08

Been through this in nhs Scotland last year, occupational health were a disgrace, absolutely against Ill health retirement, my actual employer was  supportive as was gp and consultant. Long process, I was initially given lower tier, but appealed it as I have a life limiting condition. 

As said above I was dismissed under capability, not knowing if I would be given I'll health retirement.

With the help of my consultant I was given upper tier, looking back it's a horrible process at a time when you're at your lowest ebb. I was never more aware that you're just a number as an employee of the nhs, neither wonder it's falling to bits.

hyubh

mick08 said:

Been through this in nhs Scotland last year, occupational health were a disgrace, absolutely against Ill health retirement, my actual employer was  supportive as was gp and consultant. Long process, I was initially given lower tier, but appealed it as I have a life limiting condition. 

As said above I was dismissed under capability, not knowing if I would be given I'll health retirement.

With the help of my consultant I was given upper tier

So... first you accrued a generous fully indexed DB pension. Then following a life limiting condition (clearly not good...) you ended up with still nicer ill health terms. It would seem your pension situation could have been much, much worse - and very likely would have been, had you worked in the private sector...?

I was never more aware that you're just a number as an employee of the nhs, neither wonder it's falling to bits.

All the money spent on its employees' pensions it would seem...