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Drawing your deferred benefits early due to ill health

APRIL

2013

For deferred benefits which came into effect before 1 April 2008

Introduction 3

IntroductionWe have produced this booklet to help you understand how the rules surrounding ill health pensions affect you, and in particular how you go about drawing your deferred benefits with GMPF early on the grounds of ill health.

This booklet covers the options for drawing your deferred benefits which came into effect before 1 April 2008. In other words...

l You stopped paying into GMPF before 1 April 2008, and have deferred benefits as a result, or

l You split your benefits with the same employer - for example following a pay cut - before 1 April 2008.

In our literature we try and keep jargon to a minimum, but where we have had to use a technical term we have put it in bold red ink and included a brief explanation the first time we use it.

Disclaimer:The information in this leaflet is based on the 1997 LGPS Regulations (as amended) and the 1995 LGPS Regulations. The LGPS regulations concerning ill health are complex, and this booklet is only designed to give you a simple guide, and may not cover all situations. In the event of any dispute or disagreement, it is the actual regulations which will be used to reach a decision.

4 xxxxxx 4 Contents

ContentsIntroduction 3Contents 4 Deferred benefits & ill health 5Referral to an approved doctor 6Once your former employer reaches a decision 8What pension benefits will I be paid? 9When will my pension benefits be brought into payment? 10If you disagree with the decision made by your former employer 11The 2 stage complaints procedure 12Help from outside organisations 13Further information on ill health & the LGPS 14Your notes 15

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Introduction to deferred benefits and ill healthYou are classed as having deferred benefits if you stopped paying into GMPF, but left your benefits on hold with us, for us to pay at a later date. Normally you would have to wait until 60 onwards to draw these benefits. But at any age, you can apply to your former employer, and ask them to release your benefits early on health grounds.

What does your former employer have to look at?Your former employer has to be satisfied that you meet one key condition, and that is:

That you are permanently incapable of doing your former job.

Please note: other factors such as how long you had been a member, or your financial position have no effect at all on deciding whether you are entitled to an ill health pension.

Introduction to deferred benefits and ill health 5

Glossaryl Former employer: The employer

you were working for before you stopped paying into GMPF.

l Permanently incapable: Your medical condition prevents you from carrying out your former job, until age 65.

l Former job: The job you used to do for your former employer before you stopped paying into GMPF.

Only covers deferred benefits which began before 1 April 2008

6 Referral to an approved doctor

Before your former employer can decide whether or not to bring your deferred benefits into payment early due to ill health, they will need to refer your case to an Independent Registered Medical Practitioner. This is a specially qualified doctor who is approved by GMPF to look at such cases, but for simplicity from now on we shall just refer to this practitioner as the approved doctor.

The approved doctor will have a copy of your job description from

your former employer, to help them understand the demands of your former job. It is also in your interest to help the approved doctor understand your medical condition as fully as possible. So we recommend that you are fully involved in gathering together the information about your case, so that you can be happy it is accurate and complete before it goes off to the approved doctor. The role of the approved doctor in this process is to give an opinion as to whether you are permanently incapable of doing your former job.

Glossaryl Approved doctor: we have used

this term for simplicity, but the correct term is an Independent Registered Medical Practitioner. This practitioner has been approved by GMPF because they are suitably qualified in Occupational Health, they are registered with the General Medical Council, and they have an understanding of the ill health regulations in the Local Government Pension Scheme (LGPS). The approved doctor must not have had any previous involvement in your particular case, either for you or your former employer.

Referral to an approved doctor

Referral to an approved doctor 7

As part of assessing your case, the approved doctor may ask you to go for a medical. This is not always necessary and will depend on your individual case and the doctor’s preferred method. Under the LGPS rules, the approved doctor is allowed to simply carry out a paper review of your case, rather than seeing you in person. They can do this if they feel they can form an opinion and certify on your condition, simply by referring to various letters, reports, etc. However, if you would prefer to see the approved doctor in person, please tell your former employer.

If the approved doctor does want to see you in person, they will most likely contact you directly to arrange the appointment. They may also need to request medical information from your GP or specialist, but will ask for your written permission first.

Please note: the medical assessment process can take a while - sometimes up to 12 weeks - as it involves gathering enough medical information to reach a decision.

If you want to check the progress being made on your case you should contact your former employer.

More about the approved doctor’s role

When the approved doctor is forming an opinion about your permanent incapacity, they aren’t just looking at whether you are currently incapable of doing your former job. They also have to consider whether you will be incapable of doing that job right up to age 65 - and that could be many years away.

It could be that you are waiting for further tests or treatments for your illness, and the approved doctor may not feel able to form an opinion, until these have been completed. The approved doctor will also take into account your age when looking at your case.

Remember, an opinion given by the approved doctor does not in itself entitle you to ill health benefits. An approved doctor should not indicate to you whether such benefits should be paid. This is a decision for your former employer.

8 Once your former employer reaches a decision

Once your former employer reaches a decision

If your former employer decides NOT to release your deferred benefits early...Your former employer will write to you directly with their decision, and to explain the reason for this. The letter will also include full details of how to appeal against this decision if you are unhappy with it. Please see the section If you disagree with the decision made by your former employer for further information about the complaints procedure.

If your former employer DOES decide to release your deferred benefits early...Your former employer will write to you directly with their decision, and will notify ourselves at GMPF, so we can make arrangements to start paying your benefits.

Once the approved doctor has formed an opinion, they will write to your former employer with a medical certificate. It is your former employer who must then decide whether or not to release your deferred benefits early - and normally they will go along with the approved doctor’s findings.

What pension benefits will I be paid? 9

What pension benefits will I be paid?We will pay you the full value of the deferred benefits we are holding for you. So there will be no early retirement reduction but no enhancement either.

Because you joined the LGPS before April 2008 the benefits package is an automatic one off lump sum, and a pension for life.

Once in payment, your pension will only get the annual inflation increase if you have reached 55, or if you are too ill to work at all.

What if I also have deferred benefits with other former LGPS employers?It’s quite possible you may also have deferred benefits either with other employers within GMPF, or even other LGPS employers. In this case you must contact each former employer separately, and they will follow a similar procedure to the one outlined in this booklet.

Swapping pension for lump sumMost deferred members can choose this option no matter when they left or when or how their benefits come into payment. If you choose this option, every £1 of yearly pension you give up will create £12 of tax free lump sum. If you are interested in this option, you must choose it before we start to pay your benefits!

10 When will my pension benefits come into payment?

When will my pension benefits come into payment?

The date we can

begin paying your deferred

benefits depends when they were

set up...

If your deferred benefits were set up between 1 April 1998 and 31 March 2008:We will pay your pension benefits from the date you applied to your employer to release them. In many cases this means there is some backdated pension too because of the time taken to get the necessary medical approvals etc.

If your deferred benefits were set up before 1 April 1998:We will pay your pension benefits from the date you became permanently incapable of doing your former job. So this could be some time ago, and as long as the approved doctor confirms this is the case, your benefits will be backdated.

If you disagree with the decision made by your former employer 11

If you disagree with the decision made by your former employerAs you can see, it is your former employer who has to make the decision about whether your deferred benefits should be brought into payment early on health grounds.

If you disagree with their decision, you have a right to challenge it. If you wish to do this, your should complain to your former employer by using our two stage complaints procedure, as explained on the next page.

12 The two stage complaints procedure

The two stage complaints procedure

You can proceed to stage 2 of the complaints procedure if:

l You are not satisfied with the stage 1 decision, or

l If the specified person has failed to issue a decision, or

l If you have not had a decision within the specified time limits.

Stage 2 is the responsibility of ourselves at GMPF, and we will refer your case to one of two local stage 2 referees. You must complain in writing and do so within six months of the Stage 1 decision. We recommend you supply as much information and evidence as possible, along with a copy of the Stage 1 decision. The referee should respond within two months of your application, giving you their decision, or at least an acknowledgement.

Stage 2

We have produced a booklet called How to complain which gives further details of the complaints procedure, and includes a form to help you explain your complaint clearly. You can also find out more on our website.

If you disagree with a decision made by your former employer, or if no decision is made, the first stage is for you to refer the matter to the specified person at your former employer.

The letter informing you of the decision should have included the name and address details of who to contact. You must complain in writing and do so within six months of the date of your former employer’s decision letter. The specified person should respond within two months of your complaint, giving you a full reply, or at least an acknowledgment.

Stage 1

Help from outside organisationsIf you remain dissatisfied with the decision made by GMPF’s stage 2 referee, you may refer the matter to the Pensions Ombudsman and /or to the High Court. The Pensions Ombudsman expects you to have made use of the services of The Pensions Advisory Service (TPAS). At any stage of the dispute procedure, you can turn to TPAS for free confidential help.

0845 601 2923

The Pensions Advisory Service 11 Belgrave Road London SW1V 1RB

www.pensionsadvisoryservice.org.uk/

020 7630 2200

The Office of the Pensions Ombudsman 11 Belgrave Road London SW1V 1RB

www. pensions-ombudsman.org.uk

Help from outside organisations 13

14 Further information on ill health and the LGPS

Further information on ill health and the LGPSThe Department for Communities and Local Government (DCLG) has issued guidance on ill-health and the LGPS. These documents are available in the Policies and Documents section of the GMPF website.

You are welcome to call our helpline for more information, or you can contact us electronically via our website. Please see the back cover for all contact details.

Your notes 15

Your notes

Produced by Tameside MBC, Administering Authority for Greater Manchester Pension Fund. It may be possible to produce this booklet in other formats - please contact us for more information.

Version 1, April 2013

Visit our website to find out more or to contact us by email:

Or call our friendly helpline on:

www.gmpf.org.uk

0161 301 7000Or call in at our offices:

GMPF, Concord Suite, Manchester Rd, Droylsden, M43 6SF.

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