Ill-Health Retirement

Updated : Nov 20, 2019 in Articles

Ill-Health Retirement


If you have to leave work at any age due
to permanent ill health and have at least two years scheme membership you
may be eligible for an ill health retirement package. To qualify for ill
health benefits you must be considered permanently incapable of doing your own
job and to have a reduced likelihood of being capable of doing any other job
before your normal pension age. Ill health benefits can be paid at any age
and are not reduced for early payment. The pension which you’ll receive is
based on the benefits that you’ve built up in the scheme. If you’re an active
member you’ll also get a pension enhancement depending on the severity of
your illness. There are two tiers of ill health enhancement. Tier one is an
enhancement of 100% of the pension that you would have built up in the main
section of the scheme between your date of leaving and your normal pension age. To get a tier one enhancement you must be considered unlikely to be capable of
doing any other job before your normal pension age. Tier two is an enhancement
of 25% of the pension that you would have built up in the main section of the
scheme between your date of leaving and your normal pension age. To get a tier 2
enhancement you must be considered likely to become capable of doing any
other job before your normal pension age. If you’ve left the scheme and have
deferred benefits you can apply for early payment on ill health grounds.
Different rules will apply depending on when you left the scheme. Your deferred
benefits are not reduced for early payment but there is no enhancement of
your pension. If you’re leaving your job because of ill health your employer
should send NILGOSC an application and supporting medical evidence. An
appointment will be arranged for you with our independent occupational health
doctor. We’ll then consider the medical evidence on the doctors opinion and
write to you to let you know the outcome. If you’re unhappy with this outcome you
can’t appeal to the secretary within six months of the decision. If you’re still
unhappy following the Secretary’s decision there’s a second stage of
appeal to our committee. This appeal must be made within six months of the Secretary’s decision. This short video has given an overview of ill-health
retirement. We cannot cover every individual circumstance but staff at NILGOSC will be happy to discuss how the regulations apply to you. For more
information you can browse the ill-health retirement section of our
website. You can also contact us directly on 0345 3197 320 and a member of staff will be happy to answer any
questions that you may have. you

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