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Document What does Pension Credit membership provide if it is implemented after retirement?

After Pension Sharing the former spouse or civil partner will become a Pension Credit member and hold Pension Credit benefits in the NHS Pension Scheme in their own right.
Where Pension Sharing is implemented after the member’s retirement, the Pension Credit will provide:
  • an annual pension payable from Normal Pension Age, or the date of the Pension Sharing, whichever is the later, or  commutation of trivial benefits at Normal Pension Age.* (If the pension credit is very small we may be able to convert it into a once and for all payment providing the requirements of the Finance Act 2004 are met)
     
  • on death before retirement – a lump sum on death benefit will be payable
     
  • on death after retirement, a lump sum on death benefit may be payable, this will depend on how long the pension has been in payment
Benefits may be paid before NPA if you:
  • are seriously ill and life expectancy is less than one year, or
     
  • are accepted for early payment because you are permanently incapable of regular employment because of ill health, or
     
  • apply for early payment of benefits with an actuarial reduction from the minimum pension age, (currently age 55)
*Normal Pension Age is age 60 where the Pension Credit benefits are held in the 1995 Section, age 65 where the Pension Credit benefits are held in the 2008 Section and State Pension Age, or age 65 if later, where benefits are held in the 2015 Scheme.

At payment stage the Pension Credit benefits, if applicable, will be increased in line with the cost of living from the date of the Pension Sharing and will be subject to the Lifetime Allowance. The receipt of the Pension Credit does not count for the purposes of the individuals’ Annual Allowance.

Please note: Pension Credit benefits do not provide survivor or dependants’ benefits.
 
For more information, please see the Pensions on Divorce or Dissolution of a Civil Partnership section on our website.
 
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