Views:

You can apply to exchange all your ill health benefits for a one-off lump sum payment if you’re diagnosed with a terminal illness and do not expect to live longer than 12 months.

If you're over your Normal Pension Age (NPA), there's other criteria that will be checked to make sure this is possible.

This may be taxed. Contact HM Revenue & Customs (HMRC) if you have a query about tax.

To be able to exchange your pension benefits you must have:

  • membership in the Scheme on or after 6 March 1995
  • some of your HMRC personal Lifetime Allowance (LTA) remaining
  • not already claimed your pension.

If you choose to exchange your benefits, your dependants will still get any benefits they’re entitled to in full.

If your condition improves or you return to work, you’ll not need to repay this lump sum and there will be no abatement action taken.

Read more information on terminal ill health on our website.

Under NPA

You must first apply for consideration of entitlement to ill health benefits on either a:

  • AW33E form if you're an active member
  • AW240 form if you're a deferred member
  • AW240(PC) form if you’re a Pension Credit member

Once you’re accepted, you must complete and send the AW341 form with an:

  • AW8 if you're an active member
  • AW8P if you're a deferred member
  • AW8PC form if you are a Pension Credit member

Over NPA

You’re unable to apply for ill health retirement benefits.

You have the option to exchange your retirement benefits for a one-off lump sum payment.

You must complete and send an AW341A form with an:

  • AW8 form if you're an active member
  • AW8P form if you're a deferred member
  • AW8PC form if you are a Pension Credit member

Use the reason for retirement as ‘commuted ill-health’.

Fast track application

If you’ve been given a terminal diagnosis with less than 12 months to live, you can ask that your application is dealt with urgently.

If you’re under NPA, you can apply for consideration and apply for your pension at the same time.

In NHS employment

Your employer must email a copy of all forms to stakeholderengagement@nhsbsa.nhs.uk.

Not in NHS employment

You must send a copy of all forms to medoperations@nhsbsa.nhs.uk.

Keywords: terminal illness, terminally ill, terminal over NPA, terminal under NPA, serious ill health, commuted ill health, ill health, terminal, dying