Ill health tiers
What you are paid depends on which benefit tier you qualify for. Your employer decides on the appropriate tier. The benefits payable under the different tiers and the qualifying conditions are set out below.
Tier 1
You qualify for Tier 1 if you are unlikely to be capable of gainful employment before your Normal Pension Age. The ill health benefits you would receive are:
- the pension you have already built up on your date of leaving
- no reduction for early payment
- plus the pension you would have built up in the main section of the LGPS from your leaving date to your Normal Pension Age.
A Tier 1 pension is paid for the rest of your life. The increase to your pension under Tier 1 is based on your Assumed Pensionable Pay. You can find out more about Assumed Pensionable Pay in the next section.
Tier 2
You qualify for Tier 2 if you are unlikely to be capable of gainful employment within three years of leaving, but you are likely to be capable of gainful employment before your Normal Pension Age. The ill health benefits you would receive are:
- the pension you have already built up on your date of leaving
- no reduction for early payment
- plus 25% of the pension you would have built up in the main section of the LGPS from your leaving date to your Normal Pension Age.
A Tier 2 pension is paid for the rest of your life. The increase to your pension under Tier 2 is based on your Assumed Pensionable Pay. You can find out more about Assumed Pensionable Pay in the next section.
Tier 3
You qualify for Tier 3 if you are likely to be capable of gainful employment within three years of leaving, or before your Normal Pension Age, if this is earlier. You would receive the pension you have built up on your date of leaving. it would not be reduced for early payment. Your Tier 3 pension is paid temporarily. It will stop when the first of these events happens:
- your Tier 3 pension has been paid for three years
- you start gainful employment
- you become capable of gainful employment.
If you reach your Normal Pension Age while your Tier 3 pension is being paid to you, it will not stop. Your former employer must assess whether you are capable of undertaking gainful employment.
After your Tier 3 pension is stopped, it will normally become payable again from your Normal Pension Age. You may take it earlier. Your pension fund will provide you with information about your options when your Tier 3 pension stops.