Medical retirement and pensions paid on grounds of ill health
The arrangements for ill-health retirement in NPPS are complex and the following can only be a general guide. There is a set order of procedure and before any decision can be made the police authority must put specific questions to a duly qualified medical practitioner selected by them (the ‘selected medical practitioner’) to determine whether you are permanently disabled for ‘the performance of the ordinary duties of a member of the police force.
As you are an active member of the 2015 Police pension scheme, the ill health pension benefits are paid under these regulations. However, it does take into account the benefits accrued in the 2006 scheme. Please refer to the 2015 scheme pages.
Standard ill health pension
If you are found by the selected medical practitioner to be permanently disabled for the ordinary duties of a member of the police force, but not permanently disabled for any regular employment, and there are no suitable alternative duties that you could undertake within the police force (taking account of both your disability and capabilities), the police authority will decide whether to retire you on those grounds.
If the police authority decide to retire you, you will be entitled to an immediate standard ill-health pension and lump sum
- If you have at least two years’ qualifying service and your retirement is on the grounds of permanent disablement for performing the ordinary duties of a member of the force; or
- After any length of service if your retirement is on the grounds of permanent disablement for performing the ordinary duties of a member of a force resulting from an injury received without your own default in the execution of your duty.
- Your standard ill-health pension and lump sum are calculated in a similar way to an ordinary pension, based on your pensionable pay and pensionable service at the time when you became disabled. They are not enhanced as the disability is not so severe as to prevent you from performing other work outside the police service.
Example
An officer retires from NPPS on being disabled for the ordinary duties of a member of the force at age 35 with 10 years’ pensionable service. She earns £28,000 per year. Her ill-health pension and lump sum are based on 10 years’ pensionable service, and are payable immediately without reduction:
Her pension = (£28,000 x 10) / 70 = £4,000 per year (index linked immediately)
Her lump sum = (£28,000 x 10 x 4) / 70 = £16,000 (tax free)
Enhanced top-up ill health pension
If you are found by the selected medical practitioner to be permanently disabled for the ordinary duties of a member of the police force and permanently disabled for any regular employment, the police authority will decide whether to retire you on those grounds.
If the police authority decide to retire you, you will be entitled to an immediate standard ill-health pension plus an enhanced top-up ill health pension and lump sum:
- If you have at least two years’ qualifying service and your retirement is on the grounds of permanent disablement, or
- After any length of service if your retirement is on the grounds of permanent disablement resulting from an injury received without your default in the execution of your duty (see also section 6.6).
Your enhanced top-up ill-health pension and lump sum are to compensate for the lost opportunity of working until normal retirement. The top-up pension is calculated so that the combined effect, with the standard ill-health pension, is as follows:
- Less than 5 years pensionable service – the actual pensionable service is multiplied by 4, subject to the combined enhancement to service not exceeding half prospective service as below
- Five or more years’ pensionable service – addition of half the prospective service from the date of retirement to 35 years’ service or age 55, whichever is the earlier.
Example
An officer retires from NPPS on being disabled for any regular employment at age 30 with 3 years’ pensionable service. He earns £28,000 per year. His standard ill-health pension and enhanced top-up ill-health pension and lump sum combined are based on 12 years’ pensionable service, being four times his actual pensionable service.
His pension = (£28,000 x 12) / 70 = £4,800 per year (index linked immediately)
His lump sum = (£28,000 x 12 x 4) / 70 = £19,200 (tax free)
Example
An officer retires from NPPS on being disabled for any regular employment at age 35 with 5 years’ pensionable service. She earns £35,000 per year. Her standard ill-health pension and enhanced top-up ill-health pension and lump sum combined are based on 15 years’ pensionable service, the enhancement being half of her prospective service to age 55 (half of 20 years).
Her pension = (£35,000 x 15) / 70 = £7,500 per year (index linked immediately)
Her lump sum = (£35,000 x 15 x 4) / 70 = £30,000 (tax free)
If you serve or have served part-time, any enhancement of pensionable service will not be on a full-time basis but will be reduced to reflect that some of your service has been part-time.
Ill health gratuity
An ill-health gratuity is payable if you have less than two years’ qualifying service and retire on grounds of permanent disablement. The amount of the gratuity will not be less than your total pension contributions. The gratuity is taxable.
Early payment of deferred pension because of permanent disablement
If you have been a member of NPPS but have opted out or left the service and you become permanently disabled for any regular employment, any deferred pension to which you are entitled will be paid to you with effect from the date of your disablement without actuarial reduction, providing you were not dismissed or required to resign under the Conduct Regulations (in which case payment will only be made early at the discretion of the police authority).
Injury award
If, as a result of an injury on duty, you are permanently disabled from performing the ordinary duties of a member of the police force, and you have left the service, you will receive an injury award under the Police (Injury Benefit) Regulations. This does not form part of the pension scheme.