Tier 3 pension review
A tier 3 pension is a temporary pension that you must review if the member gets a new job or after 18 months.
The member gets a new job
Pensioners receiving a tier 3 ill health retirement must inform you when they start a new job.
- you, as the employer, must decide if the new employment is 'gainful'
- if you decide it is gainful, you must advise Pension Services to stop payment of the pension
18-month review
If the member has retired under tier 3 ill health, you must contact them after 18 months, unless they will be over state pension age at the date of the review.
This review is to determine whether the person has undertaken any gainful employment. If they have not, it is to determine which of the following is true:
- the member is capable of undertaking gainful employment, and if so, the pension will stop
- the member's condition has deteriorated, and therefore the pension increased to a tier 2 ill health
- there is no change, and the pension continues for a further 18 months
At the 18-month review, you should arrange for the member to be re-assessed by your independent registered medical practitioner.
- download the certificate
- you decide at the review and advise Pension Services and the member of your decision
- if you decide to award a tier 2 ill health retirement, Pension Services will contact the member to arrange payment of the new pension