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These frequently asked questions are about the partnership review of ill health retirement, injury benefit and sickness absence in the NHS. What was the aim of the review? What changes are being made to ill health retirement benefits? Why are changes to ill health retirement benefits necessary? Are employers going to be charged for ill health retirements? What about existing claimants of ill health retirement benefits? Who would make the decision on who goes into what tier of pension under these proposals? Can an application for ill health retirement delay a dismissal on the grounds of incapacity? Who is responsible for implementing the changes to ill health retirement arrangements? What are the new arrangements regarding managing sickness absence? What is happening with the Injury Benefit Scheme review? How did the review partners involve NHS staff and employers in the review process? Is the review considering changes to NHS sick pay entitlements? Where can I get more information? What was the aim of the review?The review came about as part of the NHS Pension Scheme review, and was carried out by NHS Employers in partnership with the NHS Trade Unions on behalf of the Department of Health and the National Assembly for Wales. The review partners wanted to take the opportunity to take a holistic look at managing staff sickness in the NHS and to consider how injury is dealt with through the NHS Injury Benefit Scheme. This included looking at prevention, improving occupational health services and supporting staff to ‘step down’, so they can do a different job in the NHS or work part-time. What changes are being made to ill health retirement benefits?Under the current arrangements, only one level of criteria is used to determine whether or not to award benefits, that is the individual is judged to be unable to continue in their own job. Under the new arrangements there will be tiered arrangements for the determination of ill health retirement benefits, recognising that 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. Why are changes to ill health retirement benefits necessary?There are many reasons: How will the introduction of a normal retirement age of 65 for new members of the NHS Pension Scheme (from 1 April 2008) impact on the likelihood of increasing numbers of staff retiring on ill health grounds?As the probability of ill health retirement increases with age, an increase in the normal retirement age will undoubtedly create cost pressures in the scheme. This context was pivotal in the creation of the recommendations to ministers, as the review partner’s sought to create a sustainable solution for the future. Are employers going to be charged for ill health retirements?A key aim of the review was to develop a mechanism for employers to meet some of the cost of ill health retirement, costs which are currently met in full by the NHS Pension Scheme, and to incentivise employers to put in place a robust set of standards to support the effective management of ill health. The review partners support the principle of recharging, however, no clear preferred option was identified through the consultation process.
What about existing claimants of ill health retirement benefits?Existing claimants of ill health retirement pensions will continue to receive their current benefits. Deferred members from 1 April may apply for early payment of preserved benefits as now. The tier 2 definition will apply, but will only be able to access the tier 1 benefits of accrued service only, with no actuarial reduction. Will the new arrangements be different depending on whether you are in the old or new pension scheme?The new tiered arrangements will apply to all members of the NHS Pension Scheme who apply for ill health retirement benefits after 1 April 2008, including new entrants. The only difference will be the normal pension age (NPA) for calculating benefits will differ depending on which scheme you’re in. NPA is 60 for the current Scheme and 65 for the new Scheme. Do members/employers need to do anything differently on 1 April following changes to the NHS Pension Scheme ill health retirement arrangements?Implementation will be straight away: if you have a claim that reaches pensions division before 31 March 2008 it will be assessed under the old scheme arrangements. Who would make the decision on who goes into what tier of pension under these proposals?As is the current situation, the scheme’s medical advisers decide this based on the regulations and a medical advisers handbook. It has been agreed that the medical advisers’ handbook is revised to assist them in making decisions and this process is still ongoing. This will be jointly agreed with trade unions and will be made publicly available in due course. A review process is also included in the new arrangements if applicants are unsuccessful in obtained the proposed tier 2 but the medical advisers feel in their view the applicant has a condition which mat deteriorate within three years of a tier 1 pension being granted. Those in receipt of a tier 1 pension may also appeal that outcome. The outcome of the medical advisers decisions will also be monitored jointly with trade unions and employers representatives through governance arrangements to ensure that the jointly agreed criteria are being adhered to. Do employers have any influence on whether an ill health retirement pension is awarded under these proposals?No. If a member of staff refuses redeployment offered as an alternative to dismissal on the grounds of capability, will it affect the outcome of their pension application under these proposals?No, the decision to award a pension and which tier of benefit is all based on medical criteria decided on by the scheme's medical advisers.
Is an employer able to refuse to action an ill health retirement application in that case under these proposals?No, an employer cannot stop an individual from applying for their pension early on the grounds of ill health. Can an application for ill health retirement delay a dismissal on the grounds of incapacity?No. With robust supporting evidence and following a fair procedure an employer may dismiss on the grounds of incapacity even if an application has been made. However if the application for ill health retirement is successful then the pension will be backdated to the date of dismissal. Who is responsible for implementing the changes to ill health retirement arrangements?The NHS Pensions Division is responsible for implementing the changes. Full details can be found via their website at www.nhspa.gov.uk What are the new arrangements regarding managing sickness absence?A key aim of the review was to identify clear processes for handling sickness absence, rehabilitation, redeployment and ill health retirements, reflecting current good practice across NHS organisations. The review partners have agreed that these processes should be set out in an enabling agreement. Do employers have to do anything differently as a result of the changes to the NHS Staff Council terms and conditions handbook from 1 April?Employers should: These requirements have been set out in the Pay Circular 2/2008. Copies of this circular can be downloaded from: www.nhsemployers.org What is happening with the Injury Benefit Scheme review?Negotiations on the NHS Injury Benefits Scheme have yet to be concluded. The review partners propose to detail the arrangements for reaching agreement on a set of recommendations for change once the ill health retirement benefit and sickness absence arrangements have been implemented. How did the review partners involve NHS staff and employers in the review process?Two stakeholder events took place in 2006 to engage both staff and employers in the development of the review partner’s proposals. The review partners held a three month consultation from 22 October 2007 to 21 January 2008 on the review partner’s proposals. This consultation was supported by a further two stakeholder events held in November and December 2007 to actively seek the views of NHS staff as well as other key groups such as employers and Trade Unions on the proposals. Local employers and staff sides were encouraged to submit partnership responses during the consultation phase. The responses were used to inform the final recommendations for Ministers. Is the review considering changes to NHS sick pay entitlements?No. This review does not have any remit to consider any changes to current sick pay entitlements other than those detailed in Section 14.9 of the NHS Terms and Conditions Handbook. The review partners are specifically proposing clarification of the current arrangements for the use of the extension of sick pay entitlements. Where can I get more information?A full set of supporting materials can be downloaded from www.nhsemployers.org/illhealthreview. Any specific queries can be directly sent to illhealthretirementreview@nhsemployer.org Last reviewed 31 Mar 2008 |
