Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

Ill-health retirement for deferred members

These pages are for employer use only. Member information can be found on the home page.

You may be asked by a former employee if you will pay their deferred benefits due to ill-health. You may also be asked by an active employee who has either opted out of the scheme, or has a deferred pension.

You can only award payment of deferred benefits. There is no tier to choose from, so there will be no enhancement to the benefits awarded.

If an employee 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.

Seeking the opinion of an Independent Registered Medical Practitioner (IRMP)

So that you can decide if ill-health benefits should be awarded, you first need the opinion of an IRMP.

You should send the IRMP the medical evidence from the employees treating professional, along with an ill-health certificate. There are different certificates depending on when the employee left the scheme. Please ensure you send them the correct one.

The IRMP will review the information and decide if the employee is permanently incapable of discharging efficiently the duties of the employment the member was engaged in.

You should ask the IRMP for a narrative report, which will outline how they come to their decision.

We have a list of approved IRMPs from whom you can choose from. Please contact us to request a copy.

Making the final decision

If you agree with the opinion of the IRMP, you will award the employee immediate payment of their benefits.

If there are circumstances where you do not agree with the IRMP, the benefits will remain deferred.

The notice letter

Whether or not you decide to award deferred benefits, you still need to let the employee know.

You should put your decision in a letter to the employee explaining:

  • Your decision
  • That you have 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, then reasons as to why the employee has not met the conditions outlined in the regulations
  • Information on how the employee 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 employee left their employment.

If an employee 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 an employee left after 2008, they will also need to show that there is a reduced likelihood of gainful employment, because of their ill-health.

The certificates to be used for each type of employee can be found below.

What do we need in order to process an ill-health retirement?

So that we can process an ill-health retirement, please can you send us the following:

·         The job description of the role the benefits relate to

·         A copy of the relevant certificate completed by IMRP

·         P45 (if available) – this should be sent in order for income tax deductions from the pension to be assessed