Ill health retirement

On this page	Guidance on the process for ill health retirement
Reference to the Sickness Absence Procedure	Section 13

If an employee has been absent for an extended period, is considered to be permanently unfit to carry out their duties and is an active member of the Universities’ Superannuation Scheme (USS) or University of Exeter Retirement Savings Scheme (ERSS), or if applicable, the NHS Pension Scheme, ill health retirement may be considered.

Ill health retirement allows employees to access their pension benefits early due to sickness, disability, or a medical condition that prevents them from continuing to work. There are different types of ill health retirement, and this is determined by how much an employee is able to work with their health.

Ill Health Retirement can be considered at any stage prior to or during the Sickness Absence Procedure; however, it is vital that advice is sought from our Pay and Benefits (Pensions) team prior to progression to a Stage 3 formal meeting as the requirements for an employee to remain employed during the application/approval process for ill health retirement differs between the USS, ERSS and NHS Pension Schemes.

For an active employee, the application under the USS and NHS Pension Schemes must come from the Employer, the member cannot apply themselves. For ERSS the application must be made by the member direct to the ERSS administrators. For employees who were in the Exeter Retirement Benefit Scheme (ERBS), which closed from November 30, 2016, the University can assist with making an application for benefits. Please contact the Pensions section to discuss this.

It is important to highlight that the process for ill health retirement is complex and requires approval of both the University’s Occupational Health physician and the pension scheme’s physician and may therefore take several months.

Where ill health retirement is approved, the University will treat such retirements as mutually agreed terminations of employment, not dismissals, and therefore do not carry a right of appeal or right to paid notice.

An employee who is not a member of the one of the pensions schemes, or who does not meet the eligibility criteria for ill health retirement can still leave their employment with the University by mutual agreement, where both parties agree that the employment cannot be continued due to ill health.

Where ill health retirement is not an option, or is not agreed to by the employee, termination of employment with contractual notice will be considered on the grounds of the employee’s lack of capability to carry out the duties of the post. This may be necessary where the medical review indicates that the employee is unlikely to be fit to return to work or within a reasonable timescale.

It is important to recognise that the employee is not being accused of any form of misconduct and termination of employment will only be considered after a thorough investigation and consultation with the individual at all stages of the Sickness Absence Procedure.

Where an employee does not return to work following an extended period of absence and their employment is terminated, whether by resignation, dismissal or mutual consent, any untaken statutory entitlement from previous leave years should be calculated and paid in lieu, along with pro-rata contractual entitlement from the current leave year.

Example: A full time employee on Grade D leaves employment at the university at the end of April 2025, having been off work since February 2024.  They took no annual leave (other than bank holidays and closure days) in 2024 and 2025. They should be paid in lieu of untaken statutory leave in 2024 (28 days - 11 bank holiday/closure days = 17 days) + pro-rata contractual leave to end of April 2025 (4/12*28 days = 9 days) = 26 days.