Ill-health retirement - the role of the employer

As per the 2013 Local Government Pension Regulations (Section 36(1)), it is the employer who must decide whether to award ill-health retirements benefits or not, after obtaining the opinion of an Independent Registered Medical Practitioner (IRMP) approved by Wiltshire Pension Fund. 

The Scheme Employer must notify the member accordingly in a notice letter containing:

• Employer decision (whether an ill health benefit is to be awarded or not)
• Inform the member that the employer decision has been made with reference to the Independent Medical Practitioner's (IRMP) opinion
• If a benefit has been awarded, the tier of ill health benefit
• If a Tier 3 benefit is granted, it must mention that it is a temporary benefit and that there is a review at 18 months
• If a decision of no award has been made, then the reasons of this decision should be included. The employer should explain why the member has not met the conditions outlined in the regulations
• Information on how the member can appeal the decision must also be included, via the Internal Disputes Resolution Procedure (IDRP) process. This should include the timescales for making an appeal and the contact details of the employer's appointed person for appeal

Please ensure Wiltshire Pension Fund recieves a copy of the above notice letter to the member.

It is important to note that the Scheme Regulations do not require an active member to apply to their employer to receive their benefits on ill-health grounds, it would usually be the employer, or a doctor consulted by the employer, that would instigate the process for an active employee. Furthermore, not all members will be aware of the provisions of the scheme in regards to ill-health retirement, please refer them to Ill health retirement for more information. 

Also to note is that a long period of sickness is not required before an employee could be referred for ill health retirement, eg they could be diagnosed with a terminal illness. 

Ultimately, the employer has to decide if an employment should be terminated.