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SECTION 5: BENEFITS IN THE EVENT OF ILL-HEALTH RETIREMENT: DEATH: RESIGNATION
  

Ill-health retirement benefits

Enhancement after 5 or more years' service
 

5.01 Except for fixed term appointments where Rule 5.04 applies, subject to Rule 5.05, a member with 5 or more years' qualifying service who is retired on medical grounds before 6 April 1988 or with 2 or more years qualifying service on or after that date, will be paid an ill-health pension and lump sum; provided that, if the retirement takes place after 5 April 1978 and at or after retiring age, this Rule shall be construed as if the reference to 5 or more years or, on or after 5 April 1988, 2 or more years' qualifying service were omitted. The pension and lump sum prior to 6 April 2006 will be calculated in the same way (and be liable to similar deductions) as a pension and lump sum payable under Rule 4.03; except that, for the purpose of the calculation under this Rule and within the limits set out in Rule 5.02, a member with 5 or more years' qualifying service will have his reckonable service enhanced as follows:
  
  (i) if it is less than 10 years, to double its length or
  
  (ii) if it is 10 years or more, in whichever of the following ways gives better result:
  
    (a) to 20 years: or
  
    (b) by 6 2/3 years.
  
 

Except that where a member has withdrawn from the Scheme no enhancement will be made to his reckonable service.

Where a refund of contributions for family benefits is due in accordance with Rule 5.18, this will be paid in addition to the lump sum.
  

Commutation on serious ill health
  

  (a) Where a member who is retired on medical grounds with benefits under Rule 5.01 or 5.04, or an individual whose preserved benefits are brought into immediate payment under the provisions of Rule 5.10, has a medically assessed life expectancy of less than 12 months, he may elect, before the aforementioned benefits are due to come into payment, to commute his ill health pension into a lump sum payment. The lump sum payment shall be an amount equal to five times the annual rate of the ill health pension, less an amount equal to the ill health lump sum and, where appropriate, less the annual amount of any guaranteed minimum pension payable under Section 14(1) of the Pension Schemes Act 1993. The ill health lump sum, the lump sum resulting from the commutation and, where appropriate, a pension equal to any guaranteed minimum pension will be put into payment immediately. An election made under this Rule shall not affect the value of any benefits payable under Parts 1 or 4 of Section 6. For the purposes of determining benefits under Rules 6.03, 6.25, 6.26, 6.35(3), 6.41(C), 6.45 and 7.18(1), the pre-commutation value of the ill health pension shall be used.
  
Maximum enhancement under Rule 5.01
  
5.02 Reckonable service enhanced under Rule 5.01 by method (i) or (ii) (a) may not exceed what the member's reckonable service would have been had he stayed in service in a full-time capacity until age 65. Reckonable service enhanced by method (ii)(b) may not exceed what his reckonable service would have been had he stayed in service in a full-time capacity until age 60; or until age 65 if he retired on medical grounds on or after 1 February 1985 and he had retained a retiring and retirement age of 65; (or until 65 in the case of a female member who retired on medical grounds on or after 15 December 1986 and had exercised an option to change her retirement age to 65); or until age 65 in the case of a mobile member who was aged 50 or over on 1 April 1973, and whose employment under his current contract of employment began before that date and who retains a retirement age of 65. For the purpose of calculating the limits on enhancements of reckonable service under this Rule, added years shall be brought into account as reckonable service in accordance with Rule 3.26. For the purpose of applying these limits only, where retirement on medical grounds takes place before 1 August 1984, any period of non-reckonable service on sick leave which includes his last day of service will be treated as if it were reckonable. Where retirement on medical grounds takes place on or after 1 August 1984, and is immediately preceded by any non-reckonable service on sick leave, this service will be treated as if it had ended on his last day of reckonable service.
  
After less than 2 years' service
  
5.03 Subject to Rule 5.05, a member with less than 2 years' qualifying service who is retired on medical grounds on or after 6 April 1988 without being entitled to a pension under Rule 5.01 will be paid a return of basic contributions in accordance with Rule 5.15. A member with less than 5 years' qualifying service who is retired on medical grounds before 6 April 1988 without being entitled to a pension under Rule 5.01 will be paid an ill-health payment calculated as follows:
  
  (i) a return of basic contributions in accordance with Rule 5.15; together with
  
  (ii) (if the member has at least 2 years' qualifying service) a sum equal to the aggregate of one month's pensionable final earnings multiplied by the length of his reckonable service, and one month's pensionable final earnings multiplied by the length of his reckonable service given after his 35th birthday.
  
  Where a refund of contributions for family benefits is due in accordance with Rule 5.18, this will be paid in addition to the return of basic contributions.
  

Ill health pension for fixed term appointees
  

5.04 A member who is retired on medical grounds on or after 1 July 1997 will be awarded ill-health pension and lump sum calculated under Rule 4.03 with his reckonable service under the fixed term enhanced as if he had continued in service to the end of the appointment or by 5 years whichever is the lesser period.
  

Ill-health pension withheld in certain cases
   

5.05 In all cases of retirement on medical grounds, the Authority may at their discretion treat the retirement as a resignation, if the member made a false declaration, or deliberately suppressed a material fact, about his health when applying for employment.
  
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