Human Resources - Ill health retirement - police staff members of the LGPS protocol (L1500)

1. Summary of changes

1.1. This protocol has been reviewed in December 2023 – minor amends made to terminology throughout the document.

2. What this protocol is about

2.1. This protocol is a guide to the ill health retirement process for eligible police staff members of the Local Government Pension Scheme (LGPS).

Compliance with this protocol and any governing policy is mandatory.

This protocol is not nor is it intended to be contractual.

3. Detail the protocol

3.1. Conditions for receiving ill health retirement pensions benefits:

3.1.1. Conditions for receiving pension benefits early on the grounds of permanent ill health are:

• The individual must be leaving local government employment; and
• The reason for leaving must be as a result of being “permanently incapable of discharging efficiently the duties of their current employment or any other comparable employment within the organisation because of ill health or infirmity of mind or body”; and
• The individual must have a reduced likelihood of obtaining gainful employment before their normal retirement age; and
• An independent occupational health physician must have certified eligibility for ill health retirement; and
• The individual must have at least 3 months pension scheme membership (or have transferred benefits from another pension scheme).

3.1.2. Decisions regarding whether a member of the pension scheme is eligible for benefits are separate from decisions regarding the individual’s future employment.

3.2. The ill health retirement process: line management and Human Resources

3.2.1. An ill health retirement is a dismissal in law and it is therefore essential that the procedures in protocol L1100 Capability: Police Staff are triggered prior to any consideration of ill health retirement. This ensures that the organisation gives due regard to the requirement for reasonable adjustments, and that the individual’s employment rights are not compromised i.e. that they have the right to state their case, to representation and to appeal against any decisions.

3.2.2. Where the individual is seriously ill consideration should be given to fast tracking to stage 3 of the capability process and advice should be obtained from Human Resources - HR Services page.

3.2.3. Where the outcome of the capability process is that ill health retirement should be considered, the line manager should refer the individual to occupational health for the advice of the Force Medical Advisor (FMA). The line manager should provide the following information in the referral:

• Absence record for the previous 2 years;
• Current role requirement;
• Details of adjustments that have been made to enable the individual to undertake their role.

3.2.4. If the individual requires an illustrative pensions quote, the line manager should ask Human Resources - HR Services page to obtain this.

3.3. The ill health retirement process: Occupational Health

3.3.1. The FMA will review existing medical evidence to establish if it supports the case for ill health retirement. If additional information is required, the individual may be asked to attend an appointment with the FMA and may be asked for their consent for a report to be obtained from their GP or Consultant.

3.3.2. If there is sufficient medical evidence to support the case for ill health retirement the FMA will write a report which is submitted to an Independent Registered Medical Practitioner (IRMP), who has had no prior involvement in the individual’s case, for a second opinion.

3.3.3. If an individual contests the medical opinion of the FMA, they should write to the Clinical Governance Manager in Health and Wellbeing Services, stating their concerns. If the FMA does not feel that his or her advice should be amended to take account of the individual’s views, the individual has the right to give their comments in writing directly to the line manager dealing with their case. The line manager can seek guidance from an appropriately qualified Human Resources professional where required - HR Services page.

3.3.4. The role of the IRMP is not to confirm the termination or otherwise of employment, but to confirm whether the individual meets the criteria for ill health retirement.

3.3.5. The IRMP will have access to the following information:

• Details of illness or medical condition
• Absence record for the previous 2 years
• Reports from OH
• Reports from GP or specialist if required
• Accident report forms if appropriate
• Current role requirement
• Details of adjustments that have been made to enable the individual to undertake their job

3.3.6. The IRMP will consider:

• Whether the individual has a condition that renders them permanently incapable of discharging efficiently the duties of the relevant employment because of ill-health or infirmity of mind or body.
• Whether, as a result of that condition, the individual has a reduced likelihood of obtaining any gainful employment before reaching normal retirement age.

3.3.7. This will determine which of the 3 tiers of ill-health pension would be paid if ill health retirement is granted by the employer.

3.3.8. The IRMP will then complete the Ill Health Retirement Declaration form which is forwarded to Health Services.

3.4. The tiers of graded benefits

3.4.1. There are 3 tiers of graded levels of benefit based on the likelihood of the individual being capable of obtaining gainful employment after they leave.

3.4.1.1. Tier 1 - No reasonable prospect of being capable of obtaining gainful employment before normal retirement age: ill health benefits are based on the membership the individual would have had if they had stayed in the Pension Scheme until age 65.

3.4.1.2. Tier 2 - Unlikely to be capable of obtaining gainful employment within 3 years of leaving employment but may be capable of doing so before normal retirement age: ill health benefits are based on the individual’s membership built up to leaving plus 25% of their prospective membership from leaving to age 65.

3.4.1.3. Tier 3 - Likely to be capable of obtaining gainful employment within 3 years of leaving: benefits are based on the individual’s membership at leaving. Payment of these benefits will be stopped after 3 years, or earlier if the individual obtains gainful employment or becomes capable of undertaking such employment.

3.4.2. This outcome is subject to an Occupational Health Physician review after 18-months.

3.4.3. Payments continue either:
• Until the individual returns to gainful employment (within 3 years of date of termination);
• Until the individual is considered to be capable of obtaining employment at their 18 month review;
• For 3 years.

3.5. Contesting the retirement benefit awarded

3.5.1. The individual can appeal against the type (tier) of award, or non-payment of an award through the LGPS Internal Dispute Resolution Procedure. (See policy L60a).

3.5.2. Appeals must be received within 6 months of the date of the notification of the decision, act or omission about which the individual wishes to appeal.

3.6. Action following determination of the IRMP

3.6.1. Health Services will advise the line manager of the decision of the IRMP.

3.6.2. Unless a member of staff is appealing the finding of a permanent incapacity through the Internal Dispute Resolution Procedure, HR in consultation with the line manager and member will take steps to terminate the contract of employment for reasons of medical capability with ill health LGPS benefits. At this meeting the individual has the right to state their case, to representation and to appeal against any decision.

3.6.3. Where the outcome is that the individual is to be ill health retired, the line manager should advise Human Resources - HR Services page and Health Services.

3.6.4. Human Resources will contact LGPS for an estimate on the lump sum and pension benefits that the individual will receive by completing the online Pensions Estimate Form.

3.6.5. If the individual is seriously ill and an urgent estimate is required the request can be emailed to [email protected].

3.7. Effective date of ill health retirement

3.7.1. Retirement would commence after the individual’s notice period. This would be either their statutory or contractual notice, whichever is the greater.

3.8. Terminal illness - payment of pension benefits

3.8.1. Pension benefits will be available to individuals who are terminally ill (i.e. a life expectancy of less than a year) who retire on the grounds of ill health or in the case of death in service to the next of kin or nominated recipient.

3.8.2. There are 2 approaches when an individual becomes terminally ill:
• Continue in employment resulting in a death in service, or
• Retire on the grounds of ill health.

3.8.3. Advice can be obtained from LGPS to determine which option is most suitable in terms of pensions provisions for each case.

3.9. Definitions

3.9.1. “Permanently incapable” - the individual will, more likely than not, be incapable until, at the earliest, their 65th birthday.

3.9.2. “Discharging efficiently” - it is for the organisation to determine the definition of acceptable standard of performance, taking into account the requirements of the role.

3.9.3. “Comparable employment” - employment in which, when compared with the individual’s current employment:
• The contractual provisions as to capacity are the same or differ only to an extent that is reasonable given the nature of the individual’s ill health or infirmity of mind or body, and
• The contractual provisions as to place, remuneration, hours of work, holiday entitlement, sickness or injury entitlement and other material terms do not differ substantially from those of the member’s employment.
3.9.4. “Gainful employment” - paid employment for not less than 30 hours in each week for a period of not less than 12 months.

3.10. Further information

3.10.1. Local Government Pension Scheme website: www.lgps.org.uk

3.11. Complexity of pension regulations

3.11.1. The regulations concerning the provision of ill-health pensions are very complex.
These notes only represent a simplified guide and are not intended to cover every
circumstance. It should not be treated as a definitive statement of Law and nothing contained within this policy may over-ride the scheme regulations.

4. Equality impact assessment

4.1 This protocol has been assessed with regard to its impact on equality. As a result of this assessment the protocol has been graded as having a medium potential impact.

4.2 Attached is the latest equality impact assessment that forms part of the policy review process.

5. Risk assessment

5.1 There is no specific risk assessment or health and safety consideration thought relevant to the content of this protocol.

5.2 Officers and members of police staff engaged within the process must remain aware that they must follow the protocol correctly otherwise the risk to the organisation of a possible employment tribunal could be raised. A failure to fully adopt the principles set out in this protocol could have a detrimental effect upon the reputation of the organisation.

6. Consultation

6.1 This is a format change only, therefore no consultation is necessary.

7. Monitoring and review

7.1 The monitoring of this HR protocol will be by the Head of Health Services.

7.2 The protocol will be reviewed every two years with the next review due in December 2025.

8. Governing force policy. Related force policies and related procedures (Essex) / linked standard operating procedures (Kent)

8.1 This HR protocol supports the overarching HR policy L1.