In the LGPS a member can apply to their former employer and ask for them to release their deferred benefits early on grounds of ill health.
They can apply for payment of their deferred benefits at any age, without reduction if, because of their health they would be permanently incapable of the job they were working in when they left the LGPS.
For members who left the LGPS after 31 March 2008 there is a further requirement that they are unlikely to be capable of undertaking any gainful employment within 3 years of applying for the benefit or by their Normal Pension Age, whichever is the earlier. The conditions required for early payment of deferred benefits can depend on when the member left the scheme.
Before an employer can reach a decision on this, they have to have a certified ill health medical certificate from an Independent Registered Medical Practitioner (IRMP). Therefore, if a member approaches their former employer to investigate releasing their deferred benefits on the grounds of ill health, the employer has a responsibility to arrange for them to be assessed by an IRMP.
Ill health medical certificates
Once the IRMP has made their medical opinion, they should complete the relevant certificate based on when the member left the LGPS and return this to you.
You should use this certificate, along with any other supporting information to make your decision on the pension entitlement.
Your decision and responsibilities
When you have made the decision, you must inform the member:
- of the decision in writing.
- the reasons for the decision.
- their right of appeal under the Internal Dispute Resolution Procedure (IDRP).
What you need to tell us
You must provide a copy of the ill health certificate as well as an accompanying email confirming that they are happy for the benefits to be released on ill health grounds (if applicable).
- Appropriate Ill health certificate – (LGPS 16B, 18A, B, C or D).
- Supporting letters/emails.
- Date that benefits are to be released from.
The date the benefits are payable from depends on when the member left the LGPS:
| After 31 March 2014 | The date the former employer makes the determination that the member meets the criteria for early release of their deferred pension benefits under the LGPS on health grounds. |
| Between 1 April 2008 & 31 March 2014 | The date, certified by the IRMP, that the member first met the criteria for payment of their deferred pension benefits under the LGPS on health grounds. |
| Between 1 April 1998 and 31 March 2008 | The date the member applied to their former employer to release them. |
| Before 1 April 1998 | The date, certified by the IRMP, that the member first met the criteria for payment of their deferred pension benefits under the LGPS on health grounds. |
Statutory guidance
2013 Regulation 36(4) makes it a requirement that both employers and independent registered medical practitioners have regard to statutory guidance when carrying out their functions.
The latest guidance is dated September 2014 and is accompanied by FAQs dated June 2015. Both documents are available under ‘Statutory guidance relating to the LGPS Regulations 2013’ section of the LGPS Regulations 2013 page. https://www.lgpsregs.org/schemeregs/lgpsregs2013.php