Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

Ill HealthRetirementWhat happens if Ihave to retire earlydue to ill health?If you have to give up workbecause of illness, you maybe able to receive immediatepayment of your benefits.To qualify for ill health benefits,an independent doctor, who isqualified in occupational healthand appointed by your employer,must be satisfied that you will bepermanently unable to do yourjob until you reach age 65.Ill health benefits can be paidat any age and are not reducedon account of early payment –in fact, you can be awarded extramembership to increase thevalue of your benefits and makeup for your early retirement.How is an ill health pensionand lump sum calculated?If you have at least 3 monthstotal membership an immediatepension and tax-free lump sumis payable based on actualmembership, plus additionalmembership depending on thelevel of incapacity – see below.Tiered ill healthFrom 1 April 2008 the LGPSintroduced a new system forthe early payment of pensionsdue to permanent ill health.When establishing a member’sincapacity to carry out their job,the independent occupationalmedical practitioner appointed byemployers will also need to indicatea member’s likelihood of beingcapable of further employment.This will determine under whichtier the pension will be paid.28