Awarding Ill-Health Benefits For Deferred Members
When considering an application for bringing deferred benefits into payment on the grounds of ill-health, the Independent Doctor, and yourself as the former employer, must consider the member’s capability of fulfilling the job description of the previous role to which their deferred benefit applies.
You may receive requests for deferred ill health pension from:
- Former employees
- Active employees who have opted out of the scheme
- Employees who are current members but also have a deferred pension
The referral process for a deferred member is similar to that of active members, however a deferred member can only receive unenhanced benefits.
If the member making the request is still enrolled in the LGPS through an active employment, and/or holds a separate deferred benefit, each benefit will need to be dealt with separately. Each employer has to make their own decision about the relevant employment.
What are the criteria for awarding and Deferred member an Ill Health Pension?
The criteria for deferred pension being brought into payment on the grounds of ill-health are simpler than for an active member being dismissed on the grounds of ill-health and subsequently awarded a pension. As a deferred member can only be awarded unenhanced benefits there are no decisions to be made over which tier of pension to apply. Therefore, if the IMP signs the certificate to say that the deferred member fulfils the medical requirements, then awarding the member their deferred benefits as a pension is a straight forward process.
For a list of the funds approved IRMPs, click here.
Which regulations apply?
Different regulations will apply depending on the date the member left their relevant membership. There are different certificates for IRMP to complete depending on when the membership occurred and the date upon which the deferred member left your employment/scheme determines the certificate to be completed. These certificates are the same that you would use were you processing an active member.
The certificates to be used for each type of member can be found here.
What does the Pensions Team need in order to process an ill health retirement for a deferred member?
- Copy of the certificate completed by IMRP
- P45 (if available) – this should be sent in order for income tax deductions from the pension to be assessed.
- Job description of the role that the deferred member was employed in.