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PART 5Retirement benefits

CHAPTER 4Ill-health benefits

Consequences of review

77.—(1) If, on such consideration as is mentioned in regulation 76(1) (review of ill-health award or early payment of retirement pension), the scheme manager determines(1) that a member (H) who is in receipt of a higher tier ill-health pension has become capable of undertaking regular employment, H’s entitlement to that pension must cease with immediate effect.

(2) Subject to paragraph (3), a lower tier ill-health pension must continue to be paid to a member who ceases to be entitled to a higher tier ill-health pension.

(3) If—

(a)on such consideration as is mentioned in regulation 76(1) (review of ill-health award or early payment of retirement pension), the scheme manager determines that a member (L) who is in receipt of a lower tier ill-health pension has become capable of performing the duties appropriate to the role from which L retired on grounds of ill-health; and

(b)the Board makes L an offer of employment in that role (“a paragraph (3)(b) offer”),

L’s entitlement to a lower tier ill-health pension must cease whether L accepts or declines the offer.

(4) The Board must by written notice when making a paragraph (3)(b) offer specify a date by which, if the member has not accepted the offer, the member will be taken to have declined it.

(5) A lower tier ill-health pension ceases to be payable on the earlier of the following dates—

(a)the date on which a member re-enters scheme employment pursuant to a paragraph (3)(b) offer; or

(b)such date after the paragraph (3)(b) offer is made as the employer specifies by notice under paragraph (4).

(6) Where a member declines a paragraph (3)(b) offer, a deferred member’s account must be established under regulation 57 (account established after ill-health award ceases to be payable) from the date on which that member’s ill-health award ceases to be payable in accordance with paragraph (5).

(7) If, on such consideration as is mentioned in regulation 76(2) (review of ill-health award or early payment of retirement pension), the scheme manager has obtained the IQMP’s opinion which states that a deferred member (P) whose deferred pension is being paid early has become capable of undertaking regular employment, P’s entitlement to early payment of the pension must cease with immediate effect and P’s deferred member’s account must be adjusted under regulation 56 (adjustment of account after early payment of deferred pension ceases).

(1)

Regulation 151 (determinations by the Pension Board) requires the scheme manager to obtain the opinion of the IQMP in certain circumstances.