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Document How is a Tier 2 ill health pension calculated and how do I qualify for it?

If you are currently paying into the NHS Pension Scheme, have at least two years membership and become permanently incapable of work because of ill-health, you may be able to receive a pension if you are:
  • incapable of both doing your current NHS job; and
     
  • permanently incapable of regular employment
You may be eligible to receive Tier 2 ill health retirement benefits. The information below shows how the Tier 2 benefits are calculated in each of the NHS Pension Schemes.
  • In the 1995 / 2008 Scheme, Tier 2 is entitlement to the retirement benefits you have earned to date enhanced by two thirds of your prospective membership up to reaching your Normal Pension Age (NPA). *
     
  • In the 2015 Scheme, Tier 2 is entitlement to the retirement benefits you have earned to date enhanced by 1/2 of your prospective membership up to reaching your Normal Pension Age (NPA).
For Special Class/MHO members the enhancement will be calculated on the basis of retirement at 60. The enhanced membership will not attract doubling.
 
Enhancements to your benefits will only be applicable if you are currently employed within the NHS and you have not already received an NHS pension due to ill health for which you received enhanced membership. If you are not employed within the NHS or have already received an NHS Pension on ill health grounds that included enhanced membership only Tier 1 retirement benefits are applicable.
 
* For members of the 1995 Section whose employment ended on or before 31 March 2016 and are accepted for Tier 2 Ill health there is a minimum enhancement which is the lesser of either 4 years or the actual membership you could have achieved by the age of 60.
 
For example; if a member is 57 they could have gained three years actual membership if they worked until their NPA. Therefore the enhancement will be three years using the above provision.
 
If a member is 55 they could have gained 5 years actual membership if they worked until their NPA. Two thirds of this would only give 3 years 122 days. Therefore the enhancement would be 4 years as this would be the minimum enhancement using the above provision.
 
If a member is 51 they could have gained 9 years actual membership if they worked until their NPA. Two thirds of this would give 6 years. Therefore the enhancement would be 6 years as two thirds of their prospective membership would be above the minimum enhancement.
 
The provision is only applicable to members of the 1995 Section whose employment is terminated on or before 31 March 2016 and who are accepted for a Tier 2 ill health pension as it was part of the transitional arrangements agreed during consultation with the Department of Health and Social Care, NHS Pensions, NHS Employers and NHS trade unions following the introduction of two-tiered ill health retirement in April 2008. If you are a 1995 Section member and your employment is terminated on or after 1 April 2016 the minimum enhancement provision would not apply and your enhancement will be two thirds of your prospective membership.

For more information, please see the Ill Health section on our website.
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