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Document What will happen to my NHS pension if I retire after age 75?

Following HM Revenue and Customs legislation introduced on 6 April 2006 scheme regulations did not allow the payment of a lump sum to a member who at the time the payment is authorised was aged 75 or over. This rule included any lump sum death benefit where the member died after age 75 on or before 5 April 2011.

Members receiving either a retirement award or a substitute retirement award who were aged 75 or over on or before 5 April 2011 must have their lump sum or additional lump sum converted to extra pension as in this case trivial commutation lump sum paid after age 75 is an unauthorised lump sum.

Members receiving either a retirement award or a substitute retirement award who were aged 75 or over on or after 5 April 2011 will receive a lump sum. Members that fall into this category can elect to commute their pension benefits, subject to all other conditions being met.

Please note: If the member is aged 75 on or after 5 April 2011, and becomes terminally ill they may be able to take their benefits as a serious ill health lump sum, however this would be subject to a 45% tax charge which would be deducted from the lump sum before it is paid.

For more information, please see our website.

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