LGPS – Tier 3 ill-health pension to be paid for life

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2017 Local Government Service Group Conference
14 February 2017

Currently if a member’s employment contract ceases on medical capability grounds they may qualify for immediate payment of their pension, irrespective of age, on the grounds of ill-health.

Currently on the advice of a medical advisor retiring members are allocated to one of three tiers.

The member’s pension is enhanced in the case of Tier 1 and Tier 2 awards but is simply payment of the pension earned to the date of employment cessation in the case of a Tier 3 award.

Not only is there no extra pension paid in being awarded a Tier 3 ill-health pension but worse it is only paid for a maximum of 3 years. After 3 years a recipient is either upgraded to a Tier 2 ill-health pension or ceases to receive an ill-health pension at all. In the majority of cases it’s the latter.

UNISON condemns the fact that someone in ill-health can potentially lose their pension and calls for the abolition of the Tier 3 ill-health pension.

Conference calls on the service group executive to:

1) Ensure that this continues to be raised at the LGPS ‘Cost Management and Benefits Administration’ sub committee to push for the removal of Tier 3 as soon as possible;

2) Explore whether there are any equality or discrimination issues related to the way the ill-health retirement regulations are currently implemented.