Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

Tier 1: Immediate benefits can be paid to members who, in addition to beingpermanently unable to carry out their job, are medically certified as incapableof gainful employment*’ before age 65. The benefits under Tier 1 are basedon the membership the Scheme member has built up to that point, plus aperiod of enhancement equal to the member’s potential membership up toage 65. (For members aged 45 or over at 1 April 2008, the enhancementunder the old’ rules, where greater, would be applied instead).Tier 2: Immediate benefits can be paid to memberswho, in addition to being permanently unable tocarry out their job, are certified as incapableof any alternative gainful employment*’within three years of retirement, but capablebefore age 65. The Fund will pay anill health pension with benefits based onthe membership the Scheme memberhas built up to that point, plus a period ofenhancement equal to 25% of their potentialmembership to age 65 (For members aged 45or over at 1 April 2008, the enhancement underthe old’ rules, where greater, would be applied instead).Tier 3: Immediate benefits can be paid to a member who is permanentlyunable to carry out their job, but is certified as capable of obtaining gainfulemployment* within three years of leaving his/her employment.The Fund will pay an ill health pension with benefits based only on themembership the Scheme member has built up to that point, withoutenhancement. Members retired under these circumstances will be requiredto notify their previous employer when gainful employment is foundproviding details, including pay, working hours and length of contract of thatemployment. Former employers will be required to undertake a review whenpayments have been made for 18 months to determine whether paymentsshould cease, continue, or be paid under Tier 2.Pension payments cease after 3 years and the member becomes entitledto a deferred benefit, payable from age 60 at a reduced rate, if applicable,or in from age 65 without reduction.*gainful employment is defined as paid employment for no lessthan 30 hours per week for a period of no less than 12 months’.29In thecase of part-timemembers, any period ofenhancement at Tier 1 or Tier2 is calculated in accordancewith the same conditionshad the member remainedpart-time until normalretirement age.