Guidelines on retirement on the grounds of ill health
Section 39 of the Public Sector Management Act 1994 provides for the retirement of public service officers on the grounds of ill health. Section 4 of the Public Sector Management (Redeployment and Redundancy) Regulations 1994 restricts an employee who retires or is retired on the grounds of ill health from eligibility for redeployment or voluntary severance. It does not however prevent an employee who receives a voluntary severance from being entitled to a disability benefit.
The following guidelines have been produced to assist agencies administer this matter.
Objective:
To provide a set of guidelines that assist agencies to:
consider and determine requests for retirement on the grounds of ill health
manage issues involving employees being called upon to retire on the grounds of ill health.
in a consistent manner.
Guidelines:
Where an officer requests to be retired, or is called upon to retire, from the public service on the grounds of ill health, the following procedures should apply.
Employee Initiated Request
The employee is to provide the employing authority with a detailed medical report from a registered medical practitioner that fully addresses their inability to continue in employment.
At this stage the employee should be advised to obtain advice from their superannuation fund and be given appropriate time to obtain that advice and to consider their intention to withdraw or progress their request.
Upon receipt of the employee’s medical details, further independent advice should be sought as to the officer’s inability to continue in current employment. A copy of all relevant papers relating to the employee’s condition should be referred.
Where the independent advice supports the employee’s retirement on the grounds of ill health, the employing authority may approve the employee’s request.
Where the independent advice does not support the employee’s retirement on the grounds of ill health, the employing authority may on the medical evidence presented:
seek further independent advice;
direct the employee to return to work;
offer alternative work options suitable to both the employee and agency. For example, the offer of voluntary regression, a reduction in working hours (part time employment);
take other action appropriate to the circumstances.
Any decision is to be made in writing and a copy of the independent medical advice is to be provided to the employee.
It is suggested that an employee be given the right of review in respect of an unsuccessful request to retire on the grounds of ill health. This would include the employing authority seeking additional independent medical advice.
Ill health should not be used as the reason for permitting voluntary severance. An offer of voluntary severance should only be considered when an employee’s office, post or position is, or is to be, abolished; and the employee will become surplus to the requirements of his or her organisation.
Employer Initiated Request
Where an employing authority is strongly of the opinion that an employee’s sustained poor performance is directly attributed to the employee’s ill health, or where an employing authority has sufficient evidence to suggest that an employee’s sustained poor health poses a significant risk to the welfare of themselves and/or other employees, the employing authority may seek independent medical advice as to the employee’s ability to continue in current employment.
Again, the employee should be advised to obtain advice from their superannuation fund and be given appropriate time to obtain that advice.
Where the independent advice supports the employee’s retirement on the grounds of ill health, the employing authority may call upon the employee to retire in accordance with section 39 of the Public Sector Management Act 1994.
Where the independent advice does not support the employee’s retirement on the grounds of ill health, the employing authority may on the medical evidence presented:
seek further independent advice;
offer alternative work options suitable to both the employee and the agency. For example, the offer of voluntary regression, a reduction in working hours (part time employment);
take other action appropriate to the circumstances.
Any decision is to be made in writing and a copy of the independent medical advice is to be provided to the employee.
Ill health should not be used as the reason for offering voluntary severance. An offer of voluntary severance should only be considered when an employee’s office, post or position is, or is to be, abolished and the employee will become surplus to the requirements of his or her organisation.
Unlike the repealed Public Service Act 1978 and its Regulations, there are presently no provisions relating to those instances where an employee is called upon to retire on the grounds of ill health but refuses to do so. In his review of the Public Sector Management Act 1994, Commissioner Fielding highlighted the following.
“The only way an employing authority can enforce the ‘retirement’ of a public servant on the grounds of ill-health is to charge the public servant with a breach of discipline, constituted by disobedience or disregard of a lawful order.”
Accordingly, any decision to terminate the services of an employee will need to have regard for the Human Resource standard established by the Public Sector Commissioner relating to Termination.
Superannuation
As outlined, the employee should be advised to obtain advice from their superannuation fund and be given appropriate time to obtain that advice and to consider their intention to withdraw or progress their request.
Insofar as the Government Employees Superannuation Board (GESB) is concerned, disability is defined as being either totally and permanently disabled or partially and permanently disabled.
The GESB defines disability as being where a person will never be able to perform their usual work (partial disability) or any other alternative work (total disability).
A decision on a person’s eligibility for a superannuation disability benefit is vested with the Board and is made independently of the view of an employing authority. Further, if an employing authority refuses to support retirement on the grounds of disability, an employee can still apply to the GESB and retire with a full disability superannuation benefit. Hence it is important that employees seek advice from their superannuation funds.
Workers’ Compensation
Where an employee’s condition has been caused through a work related injury and is subject to a claim for workers’ compensation, retirement on the grounds of ill health is not to be approved until their claim is settled. Notwithstanding this, the matter may be progressed where it is known that a workers’ compensation settlement is being negotiated. Following the settlement, the retirement may proceed as normal.
Guidelines on retirement on the grounds of ill health
Section 39 of the Public Sector Management Act 1994 provides for the retirement of public service officers on the grounds of ill health. Section 4 of the Public Sector Management (Redeployment and Redundancy) Regulations 1994 restricts an employee who retires or is retired on the grounds of ill health from eligibility for redeployment or voluntary severance. It does not however prevent an employee who receives a voluntary severance from being entitled to a disability benefit.
The following guidelines have been produced to assist agencies administer this matter.
Objective:
To provide a set of guidelines that assist agencies to:
in a consistent manner.
Guidelines:
Where an officer requests to be retired, or is called upon to retire, from the public service on the grounds of ill health, the following procedures should apply.
Employee Initiated Request
At this stage the employee should be advised to obtain advice from their superannuation fund and be given appropriate time to obtain that advice and to consider their intention to withdraw or progress their request.
Upon receipt of the employee’s medical details, further independent advice should be sought as to the officer’s inability to continue in current employment. A copy of all relevant papers relating to the employee’s condition should be referred.
Employer Initiated Request
Again, the employee should be advised to obtain advice from their superannuation fund and be given appropriate time to obtain that advice.
Unlike the repealed Public Service Act 1978 and its Regulations, there are presently no provisions relating to those instances where an employee is called upon to retire on the grounds of ill health but refuses to do so. In his review of the Public Sector Management Act 1994, Commissioner Fielding highlighted the following.
“The only way an employing authority can enforce the ‘retirement’ of a public servant on the grounds of ill-health is to charge the public servant with a breach of discipline, constituted by disobedience or disregard of a lawful order.”
Accordingly, any decision to terminate the services of an employee will need to have regard for the Human Resource standard established by the Public Sector Commissioner relating to Termination.
Superannuation
As outlined, the employee should be advised to obtain advice from their superannuation fund and be given appropriate time to obtain that advice and to consider their intention to withdraw or progress their request.
Insofar as the Government Employees Superannuation Board (GESB) is concerned, disability is defined as being either totally and permanently disabled or partially and permanently disabled.
The GESB defines disability as being where a person will never be able to perform their usual work (partial disability) or any other alternative work (total disability).
A decision on a person’s eligibility for a superannuation disability benefit is vested with the Board and is made independently of the view of an employing authority. Further, if an employing authority refuses to support retirement on the grounds of disability, an employee can still apply to the GESB and retire with a full disability superannuation benefit. Hence it is important that employees seek advice from their superannuation funds.
Workers’ Compensation
Where an employee’s condition has been caused through a work related injury and is subject to a claim for workers’ compensation, retirement on the grounds of ill health is not to be approved until their claim is settled. Notwithstanding this, the matter may be progressed where it is known that a workers’ compensation settlement is being negotiated. Following the settlement, the retirement may proceed as normal.
Page last updated 27 September 2012