Deferred LGPS ill health pension

blues

I’ve been approved for ill health retirement by a previous LG employer. They’ve sent my pension figures which are considerably lower than the yearly pension statement I received in August this year. 

Their letter states that pension increases haven’t been applied to my figures because I’m not 55 (I’m in my 40’s). However, I’ve read that pension increases should have been applied because I’ve been declared permanently unfit for work. Could anyone please advise if I’ve misunderstood, before I go back to them? Tia.

Silvertabby

blues said:

I’ve been approved for ill health retirement by a previous LG employer. They’ve sent my pension figures which are considerably lower than the yearly pension statement I received in August this year. 

Their letter states that pension increases haven’t been applied to my figures because I’m not 55 (I’m in my 40’s). However, I’ve read that pension increases should have been applied because I’ve been declared permanently unfit for work. Could anyone please advise if I’ve misunderstood, before I go back to them? Tia.

The usual criteria for payment of cost of living increases pre age 55 is that you have been deemed permanently unfit for full time work.  Is this definitely the case? But -  when exactly did you leave, as that could make a difference.

The figures you have been quoted are lower than your latest benefit statement because they have (rightly or wrongly) been reduced by cost of living increases applied since you left.  

blues

Thanks Silvertabby. I left the job in 2009. I think you’ve hit the nail on the head with the “deemed permanently unfit for full time work” comment. The letter states I meet the criteria for ill health retirement but at the end of the report, the Dr has put “I expect her to reach a point where she can work gainfully full time before age 65.” 

Does this also mean I won’t receive any yearly increases in the pension amount once it’s in payment? Tia

Silvertabby

blues said:

Thanks Silvertabby. I left the job in 2009. I think you’ve hit the nail on the head with the “deemed permanently unfit for full time work” comment. The letter states I meet the criteria for ill health retirement but at the end of the report, the Dr has put “I expect her to reach a point where she can work gainfully full time before age 65.” 

Does this also mean I won’t receive any yearly increases in the pension amount once it’s in payment? Tia

Yes, until you are 55.  Your pension will be the amount due as at your date of leaving then, at 55, it will be uplifted by the total cost of living increases.  It will then continue to increase yearly.