Health insurance services

Tender description

The West Midlands Pension Fund is looking to procure an insurance policy to cover the strain cost passed onto participating employers as a result of member ill health early retirement. In the event of an ill-health early retirement in the LGPS, additional liabilities arise in the Fund due to: a) early payment of accrued pension; and b) enhancement of the pension in accordance with LGPS Regulations. There are 3 tiers of ill health outlined in the Regulations, however only 2 of these involve enhancement (as below) and it is for these tiers that the Fund is wishing to obtain insurance. Tier 1 — The active member of the scheme is expected to never return to work. The member will receive their accrued pension plus 100 % of their expected future service as an ‘enhancement’. Tier 2 — The active member of the scheme is expected to be unable to work for at least 3 years. The member will receive their accrued pension plus 25 % of their expected future service as an ‘enhancement’. The West Midlands Pension Fund is looking to procure an insurance policy to cover the strain cost passed onto participating employers as a result of member ill health early retirement. In the event of an ill-health early retirement in the LGPS, additional liabilities arise in the Fund due to: a) early payment of accrued pension; and b) enhancement of the pension in accordance with LGPS Regulations. There are 3 tiers of ill health outlined in the Regulations, however only 2 of these involve enhancement (as below) and it is for these tiers that the Fund is wishing to obtain insurance. Tier 1 — The active member of the scheme is expected to never return to work. The member will receive their accrued pension plus 100 % of their expected future service as an ‘enhancement’ Tier 2 — The active member of the scheme is expected to be unable to work for at least 3 years. The member will receive their accrued pension plus 25 % of their expected future service as an ‘enhancement’.