If you apply for a terminal illness one-off lump sum, this will be calculated depending on your circumstances.
If you were actively contributing to the Scheme on or after 1 April 2008, we’ll calculate the maximum lump sum available to you using the commutation rate.
We’ll apply this up to HM Revenue & Custom's (HMRC) pension commencement lump sum limits. The remainder of your pension will be converted to a lump sum. For every £1 of pension, we’ll give you £5 of lump sum.
If you left the Scheme before 1 April 2008, we’ll calculate your lump sum which will normally be equal to 3 times your annual pension.
We’ll convert the remainder of your pension. For every further £1 of your pension, you’ll receive £5 in your lump sum.
If the payment of your lump sum is more than your available Lifetime Allowance (LTA), the excess will be subject to a LTA charge at the rate of 55%.
If you choose to exchange your pension benefits for a one-off lump sum payment, your dependents will still be entitled to receive any survivor pension due to them. No death gratuity lump sum will be payable.
Read more information on ill health retirement on our website.