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Document What does Pension Credit membership provide if it is implemented before the member's 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 the Pension Sharing was implemented before the member's retirement, the Pension Credit will provide:
 
1995 Section
  • An annual pension payable from age 60, or the date of the Pension Sharing if later. 
     
  • A lump sum of three times the pension.
     
  • An increased lump sum by choosing to commute some of the pension.
     
  • 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 normal pension age if you:
  • are seriously ill and life expectancy is less than one year,
     
  • 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).
2008 Section
  • An annual pension payable from age 65, or the date of the Pension Sharing if later.
     
  • A lump sum by choosing to commute some of the pension (providing the Pension Sharing was implemented prior to the actual member’s pension benefits coming into payment).
  • 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 normal pension age if you:
  • are seriously ill and life expectancy is less than one year,
     
  • 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).
 2015 Scheme
  • An annual pension payable from the Pension Credit member’s normal pension age, or the date of the Pension Sharing if later.
     
  • 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 normal pension age if you:
  • are seriously ill and life expectancy is less than one year,
     
  • 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).
At the 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.

Please note: Pension Credit benefits do not provide survivor or dependant benefits.

Find more information on Pensions on Divorce or Dissolution of a Civil Partnership on our website.
 
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