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Local government ill-health retirement set to cause headache

2 July 2008

Local authorities are bracing themselves for an increase in complaints from those who are facing delays in receiving ill-health pensions, says law firm Pinsent Masons.

According to a survey carried out by the firm in April 2008, 68 per cent of the claims currently dealt with internally by local authority schemes relate to ill-health retirements, and this figure is higher for complaints made to the Pensions Ombudsman at 71 per cent.

The recent statement by the Association of Local Authority Medical Advisers (ALAMA) that its members are being asked to make decisions on non-medical issues and the new tiered nature of the LGPS ill-health retirement provisions are even now leading to delays, and Pinsent Masons says these will raise further grounds for disagreement between LGPS members and their employers about whether a member qualifies for ill-health retirement.

John Hanratty, head of public sector pensions at Pinsent Masons, said: “As the disagreement between the ALAMA and the DCLG continues, local authorities will surely see a big increase in these complaints and, even when that situation is resolved, there is the tiered nature of the ill-health retirement benefits under LGPS which in itself will give rise to an increase in reasons for complaint. I would not be surprised to see the survey figures increase markedly in the future.”


- Pensions Age July 2008

   
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