You may be able to take your pension as a one-off lump sum if either the:
- capital value of all your pension arrangements except State Pension or adult dependant’s pension is £30,000 or less
- total value of the one-off lump sum in your NHS Pension not including any commencement lump sum is £10,000 or less
This applies to all pensions payable under the NHS Pension Scheme including the ill health retirement pension.
Taking your pension as a one-off lump sum is known as ‘trivial commutation’.
Read information about trivial commutation restrictions on our website.
Apply for trivial commutation
Send a covering letter with your AW8 or AW8P pension benefit application form.
If you have membership in the 1995 and 2008 Section, you must take trivial commutation from both sections. A separate decision can be made for the 2015 Scheme.
We'll confirm if you’re eligible to take trivial commutation and send you 3 forms to complete:
- AWTC2 - this provides details of your estimated pension, lump sum and potential trivially commuted lump sum
- AWTC3 - this an option form for you to sign and say if you want to continue with trivial commutation
- AWTC4 - this is a questionnaire to give details of any pension arrangements you have outside of the Scheme which will be checked against the ‘HM Revenue and Customs (HMRC) information’ section of the AW8 or AW8P form
If the details on the AWTC4 form do not match, an AWTC4 reissue letter will be sent explaining the reason.
Choice letter
If the capital value of the total benefits across all pension providers is £6,000 or less, you’ll be sent a choice letter.
It’s your decision to take normal benefits or a one-off lump sum payment.
Normal benefits will be paid unless you ask for a one-off lump sum if the capital value of the benefits across all pension providers is both:
- more than £6,000
- less than £30,000
Capital value
To calculate your capital value, multiply your annual pension by 20 and add your total retirement lump sum.
If a different pension provider has asked for the capital value of your NHS Pension for trivial commutation, you must put your request in writing to:
NHS Pensions
PO Box 683
Unit 5
Newcastle Upon Tyne
NE5 9EE