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2Scottish NHS Pensions: Ill Health Retirement Briefing No.174 Nov 2007 Introduction
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Scottish NHS Pensions: Ill Health Retirement Briefing No.174 Nov 2007

Introduction

This briefing highlights the proposed changes to the ill health retirement benefits of NHS Pension Scheme in Scotland. The Scottish Pension Review Group (SPensiR), comprising a partnership group with representatives from NHS employers, trade unions, professional organisations and the Scottish Government including SPPA, have endorsed the proposals which form the basis of this consultation.

The Current Scheme Arrangements

Ill-health retirement benefits are an integral part of the NHS Pension Scheme. The current NHS Pension Scheme, like most occupational pension schemes, provides earlier access to pension benefits to compensate individual members who because of ill-health are permanently incapable of carrying out their duties and have to prematurely end their occupation.

The principle is that the enhancement should help to compensate for loss of further opportunity for pension accrual, which has been prematurely curtailed through ill-health. This is why the Scheme's Regulations insist on the measure of permanence, i.e. permanently incapable of efficiently discharging the duties of that employment.

Access to ill-health retirement provisions are dependant on a minimum 2 years membership of the scheme while the amount of extra membership awarded is dependant on length of membership and age at retirement.

The Proposals

SPensiR propose the creation of tiered arrangements for the determination of ill-health retirement benefits, recognising the different levels of benefits for members should be dependent on the severity of their condition and the likelihood of them being able to work again.

This is shown in the table below:

Lower Tier

Unable to do own job

Accrued service without any actuarial reduction; no enhancement provided

Upper Tier

Unable to carry out any regular employment

In addition to the lower-tier award, members will receive an enhancement of two-thirds prospective service

The new scheme would allow movement between the two tiers, dependant on a medical assessment. There is still some clarification needed on the definitions used to specify issues such as 'regular employment'.

Consultation

The consultation paper seeks the views of respondents. The full list of questions are printed below.

Question 1.

Do you support the creation of a tiered approach for the determination of ill-health benefits?

yes/no

Question 2.

Do you agree with the proposed definition for the lower-tier?

yes/no

Question 3.

Do you agree with the proposed definition for the upper-tier?

yes/no

Question 4.

Do you support the proposed level of benefits in the lower-tier?

yes/no

Question 5.

Do you support the proposed level of benefits in the upper-tier?

yes/no

Question 6.

Do you support the minimum enhancement of 4 years in the upper-tier?

yes/no

Question 7.

Do you support a review of entitlements based on the Lower Earnings Limit for members receiving upper-tier awards?

yes/no

Question 8.

Do you agree that the medical advisor should be able to defer a decision on awarding the upper-tier in appropriate cases?

yes/no

Question 9.

Do you agree that if a member requests that the review be brought forward they should forego the opportunity for a further review, other than through the appeals process?

yes/no

Question 10.

Do you agree that there should be a "one-off" opportunity for members to return to employment knowing that they could regain their upper-tier benefit if subsequently they were unable to work during the first 12 months of starting work?

yes/no

Question 11.

Do you support the proposed method of calculating benefits for terminal illness?

yes/no

Question 12.

Do you support the proposed method of calculating benefits for death in service?

yes/no

Question 13.

Do you support the proposed method of calculating benefits for Deferred Benefit members?

yes/no

Question 14.

Do you agree that lower-tier benefits should be paid to deferred members?

yes/no

Question 15.

Any other comments?

 

 

 

Action for Branches

UNISON Scotland will be submitting a response to the consultation on ill health retirement and would encourage members to forward any relevant information they may have to Willie Duffy by 13th Dec 2007.

Further Information

UNISON Scotland
www.unison-scotland.org.uk

SPPA NHS Pension Reforms
www.sppa.gov.uk/pension_reform/nhs.htm

Contacts list:

Willie Duffy
w.duffy@unison.co.uk

Kenny MacLaren
k.maclaren@unison.co.uk

Dave Watson
d.watson@unison.co.uk

@ The P&I Team
14 West Campbell St
Glasgow G26RX
Tel 0845 355 0845
Fax 0141-307 2572

 

 

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Further Information

Action for Branches

UNISON Scotland will be submitting a response to the consultation on ill health retirement and would encourage members to forward any relevant information they may have to Willie Duffy by 13th Dec 2007.

Further Information

UNISON Scotland
www.unison-scotland.org.uk

SPPA NHS Pension Reforms
www.sppa.gov.uk/pension_reform/nhs.htm

Contacts list:

Willie Duffy
w.duffy@unison.co.uk

Kenny MacLaren
k.maclaren@unison.co.uk

Dave Watson
d.watson@unison.co.uk

@ The P&I Team
14 West Campbell St
Glasgow G26RX
Tel 0845 355 0845
Fax 0141-307 2572