If an employee requests and is approved for Ill health retirement, the retirement notification should be submitted to the Fund via the Employer Self-Service (noting Ill health as the reason for leaving), alongside the following documents are required to be submitted to the Fund:
- The completed M1 form (this form is available from the Employer Services Team upon request, via email at: WMPFEmployerLiaison2@wolverhampton.gov.uk)
- A copy of the RB1 and RB1(D) forms
- Copies of any relevant certificates: birth certificate, *marriage certificate and *spouses birth certificate (*if applicable)
- A copy of the statutory notification provided to the member (specimen found in the downloads section)
If you are requesting a M1(D) - Leaver, relating to a former employee (now a deferred member), please state in your email request the former members date of leaving/opting out.
Qualifying for ill health benefits
You must first ensure that an employee if eligible for an Ill health retirement. They must have met the two-year vesting period in the LGPS to qualify for ill health benefits. You employer must be satisfied that:
- The member is permanently unable to do their job until their Normal Pension Age, and
- They are not immediately capable of undertaking gainful employment.
If they qualify, the member should be referred to an independent registered medical health practitioner (IRMP) who will assess the member and complete the M1 form with their opinion.
Ill Health Tiers
A tiered approach is taken to Ill Health retirement and the tier awarded is dependent upon the severity of the condition.
| Tier |
Detail |
Benefits payable |
| Tier One |
Unlikely to be capable of undertaking gainful employment before normal pension age |
Tier One pension is payable for life |
| Tier Two |
Unlikely to be capable of undertaking any gainful employment within 3 years of leaving employment but likely before NPA |
Tier Two pension is payable for life |
| Tier Three |
Likely to be capable of undertaking gainful employment within 3 years of leaving the employment or before normal pension age |
Tier Three benefits are payable for a maximum of 3 years 18 Month review undertaken |
Any decision to award ill health retirement and the particular Tier or to not award ill health retirement should be documented by the employer (in case of query or member appeal).
Early payment of deferred benefits on ill-health grounds
If you are contacted by a former member (any age) with deferred benefits, who wishes to claim their benefits early on ill-health grounds, you will need to request from the Fund the appropriate M1(D) form - dependant on when the member left - and arrange for the former member to be assessed by your Independent Registered Medical Practitioner (IRMP).
In this event, no early retirement cost is calculated by the Fund, however any ill-health retirement will increase an employer's pension liabilities, and these will be calculated at the next triennial valuation, or earlier if the employer ceases.
Captive Insurance for Ill-Health Retirements
The Fund has explored arrangements to help mitigate employer financial implications of unexpected additional ill-health costs, with the primary advantage being the protection of employers with weaker covenants or smaller workforce against the significant strain costs and additional (unbudgeted) contribution requirements that can arise following an ill-health early retirement. For all employers with less than 1000 members, the Fund has implemented a captive self-insurance mechanism achieved through a reserve based on the existing implicit assumption for ill-health liability exposure adopted by the Fund actuary. For further details, see the Fund's Funding Strategy Statement.
