If the capital value of all of your pension arrangements (not including State Pension or adult dependants pension) both within and outside of the NHS Pension Scheme is £30,000 or less, or the total value of the trivially commuted pension (excluding any commencement lump sum) in your NHS pension alone is £10,000 or less, you may be able to take your pension as a one off lump sum. This is known as "trivial commutation" and applies to all pensions payable under the Scheme including the ill health retirement pension.
Where the capital value of the benefits built up within the NHS Pension Scheme and with any other pension providers is £6,000 or less, you will be sent a choice letter and it is your decision to either take normal benefits or to have the pension benefits trivially commuted into a once and for all payment.
Where the capital value of the benefits built up within the NHS Pension Scheme and with any other pension providers is more than £6,000 but not more than £30,000, normal benefits will be paid unless you ask for your pension benefits to be trivially commuted.
There are other restrictions that would mean it is not possible to take trivial commutation. For further information on these restrictions please see the Trivial commutation factsheet on our website.
If you think you may meet the criteria to take your pension as a one off lump sum, please enclose a covering letter requesting this be considered with your AW8 or AW8P pension benefit application form. If you have membership in both the 1995 and 2008 Sections of the Scheme you must take trivial commutation from both Sections. A separate decision can be made in respect of the 2015 Scheme.
NHS Pensions will then confirm if you are eligible to take trivial commutation, and if so send you three forms to complete confirming your decision. These forms are:
- AWTC2 - provides details of your estimated pension, lump sum and potential trivially commuted lump sum
- AWTC3 - an option form for you to sign and indicate whether you wish to proceed with trivial commutation
- AWTC4 - a questionnaire to provide details of any pension arrangements that you have outside of the scheme
We cannot pay a trivial commutation lump sum without all of the above forms being completed.