Further regulations amending the new-look Local Government Pension Scheme (LGPS) came into force on 7 May 2008. The regulations make various changes to the different sets of LGPS regulations, primarily the Local Government Pension Scheme (Benefits, Members and Contributions) Regulations 2008 (SI 2008/1166). The main change is the introduction of a third tier of ill-health early retirement (IHER) benefits, following consultation on this proposal during 2007. The new tier provides IHER pensions for members who are assessed to be incapable of performing their current local government jobs, but are judged capable of obtaining other gainful employment within three years. Benefits in this situation are calculated as though the date on which the member left employment were his or her normal retirement age (NRA).

The existing two tiers of IHER pensions in the LGPS provide two different levels of enhanced benefits: the addition of 100% of the member's notional service to NRA for members for whom there is no reasonable prospect that they will work in any other employment before reaching NRA; and the addition of 25% of their notional service for those who are likely to become capable of some work before NRA. Under transitional provisions in the amendment regulations, until 1 October 2008 members who are worse off under the new regime than they would have been under the predecessor 1997 LGPS regulations will be treated as though the 1997 regulations still applied.

For a commentary on the new LGPS, see Legal update, LGPS regulations commentary guidance now available.

See Local Government Pension Scheme (Amendment) Regulations 2008 (SI 2008/1083).