PP16158 - WMPF Ill Health Insurance

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 three tiers of ill health outlined in the Regulations, however only two 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 three years. The member will receive their accrued pension plus 25% of their expected future service as an ‘enhancement’ Keywords: health, ill, retirement, insurance