What the member receives - the 3 tiers
The amount of benefits payable and the duration of their payment depend on the member's ability to undertake gainful employment. There are three tiers. Enhancements in tiers 1 and 2 are based on the member's annual rate of assumed pensionable pay.
Tier 1
Awarded where there is no reasonable prospect of the member being capable of undertaking any gainful employment before their normal retirement date.
The member will receive an enhancement related to the pension they may have built up if they had stayed within the scheme until their state retirement age.
Tier 2
Awarded where the member is unlikely to be capable of undertaking any gainful employment within three years of leaving local government employment, but they will likely be capable of undertaking gainful employment before their state retirement age.
The member will receive both:
- a pension based on the pension up to the date of leaving
- an enhancement of 25% of the pension they may have achieved if they had continued in employment to state retirement age
Tier 3
Awarded where the member is likely to be capable of undertaking gainful employment within three years of leaving employment.
They will receive an unreduced pension for no more than three years. The pension will then be reinstated once they reach retirement age.
You must review the member's medical situation after 18 months.
During the three years, the member must tell you if they take up any employment. You will have to decide whether the employment is 'gainful'. If you believe it is gainful employment, the pension will then be suspended.
Learn more about the tier 3 review.
If the member does not meet the ill health retirement criteria
If the member doesn't satisfy the main ill health criteria, the member will not receive any benefits on ill health retirement.