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Document What happens if I am paid a Tier 2 ill health pension as a one-off lump sum and then return to work?

If you are terminally ill and do not expect to live longer than a year, you can apply at retirement to exchange all of their ill-health benefits for a one-off, usually tax-free, lump sum payment. If, after being paid this lump sum, your condition improves or you return to work, you will not be expected to repay this lump sum and there will be no abatement action taken.

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terminal ill health, ill health commutation back returning to work, tier 2
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