If an employee meets the qualifying requirements as a member of the Local Government Pension Scheme and where it is appropriate for an ill-health retirement assessment to be requested this should be considered. An ill health retirement assessment is carried out by an Independent Registered Medical Practitioner through an approved occupational health service. The occupational health service will assess the employee against the ill health retirement criteria contained within the Local Government Pension Scheme Regulations and can make one of two assessments, if ill health retirement applies;

1. The employee meets the criteria for a Tier 1 ill health retirement
2. The employee meets the criteria for a Tier 2 ill health retirement

In both cases, the employee should immediately be managed in line with the guidance on ill health retirement (available on the People Anytime portal or from  line managers.). Where the employee does not meet the criteria for either a Tier 1 or Tier 2 ill health retirement, a Capability Assessment Meeting will be arranged.

If the outcome of a Capability Assessment Meeting is to dismiss an employee who is currently absent, and the medical evidence suggests that they may be unlikely to return to work within a reasonable timescale, a Tier 3 gratuity will be paid if; • the employee is a current member of the Local Government Pension Scheme (LGPS), with 2 or more years’ service in the Scheme
• an ill-health retirement assessment has been undertaken and it is confirmed that ill health retirement does not apply This gratuity is equivalent to one week’s pay for each completed year of  continuous service up to a maximum of 30 weeks. This payment will be made in addition to any pay in lieu of notice and only applies to dismissal on grounds of lack of capability due to ill health.

The ill health retirement provisions and process for teachers/SNCT employees are separate and are available on the People Anytime portal or from line managers.

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