Ill-health retirement for deferred members
You may be asked by a former member if you'll pay their deferred benefits due to ill-health. You may also be asked by an active member who has either opted out of the scheme, or has deferred pension benefits.
Unlike for active members there are no enhancements available - you can only award payment of deferred benefits.
If a member has more than one deferred benefit, they will need to be dealt with separately.
For more information, take a look at our ill-health frequently asked questions.
Getting the opinion of an independent registered medical practitioner (IRMP)
To decide if ill-health benefits should be awarded, you need the opinion of an IRMP.
You should send the IRMP the medical evidence from the members treating professional, along with an ill-health certificate. There are different certificates depending on when the member left the scheme. Please make sure you send them the correct one.
The IRMP will look at the information and decide if the member is permanently incapable of discharging efficiently the duties of the employment the member was previously engaged in.
You should also ask the IRMP for a narrative report. This will describe how they've reached their decision.
We have a list of approved IRMPs you can choose from. Please contact us to request a copy of this list.
Making the final decision
If the IRMP believes the member meets the ill-health rules, and you agree with this opinion, you should award the member immediate payment of their benefits.
If you decide the member doesn't meet the ill-health rules, based on reference to the IRMPs opinion, their benefits will remain deferred.
The notice letter
If you decide to award deferred benefits or not, you still need to let the member know.
You should put your decision in a letter to the member explaining:
- Your decision
- That you've made the decision with reference to the IRMPs opinion
- How you reached the decision in the context of the regulations
- If a decision of no award has been made, the reasons why the member hasn't met the conditions outlined in the regulations
- Information on how the member can appeal the decision, including the timescales for making an appeal and the contact details.
Which regulations apply?
Different regulations will apply depending on when the member left their employment. If the member left before 2008, they only have to show that they are permanently incapable of carrying out the job the benefits relate to, until their normal pension age. If the member left after 2008, they will also need to show that there is a reduced likelihood of gainful employment, because of their ill-health.
What do we need in order to process an ill-health retirement?
For us to process an ill-health retirement, please send us the following:
- The job description of the role the benefits relate to
- A copy of the relevant certificate completed by the IMRP
- P45 (if available) – this should be sent in order for income tax deductions from the pension to be assessed.