When you learn that one of your employees is seriously or terminally ill, if that employee is a member of the LGPS you should seek guidance from us as soon as possible.

At such difficult times, both for our scheme member who is ill and the people closest to them, it's crucial that their pension is high on the list of things to think about, particularly where life expectancy is limited.

The employment status of a scheme member at their date of death can greatly affect the amount of money their family or beneficiary will receive from the fund.

Sometimes there may be much greater financial benefit for the family or beneficiaries of your employee if they are already receiving their pension when they die. 

If that is the case, you may need to begin discussing a procedure for ill health retirement.

Liaising with us as soon as you find out about your employee's ill health will help to ensure that you have the right information to hand when you are providing support about their options on continuing in employment or considering ill health retirement.

Potential impact of taking no action

Inactivity or delay on the part of the employer at this crucial time can have a significant impact on your employee or their family or beneficiary. It's important that your employee is aware that they have a key decision to make about their pension. Where an employer does not support their employee in providing information about their pension options, an appeal against an employer's inaction may be considered as maladministration. 

With the consent of your employee, we can supply prospective quotes to employers to ascertain which is more financially beneficial to the family; death in service, or death in receipt of their LGPS pension.