NHS Seriously Ill Lump Sum........remaining benefits

Dean1970

Hi all - I have joined to ask for your help in relation to my wife’s NHS pension and I hope there is someone here who can help me.

My wife is 47 and has worked for the NHS for 25 years. Unfortunately she is terminally ill and I am trying to work through the various pension options available from the scheme to establish which will be the most beneficial for myself and our two children but it is proving to be hard work. I have a question that I am struggling to find the answer to as follows:

If my wife takes the maximum Serious Ill Health lump sum (which she has qualified for) can anyone confirm whether a surviving spouse pension and dependent children’s pension are still payable after her death and,if so, whether they are diminished due to the lump sum paid?

I am trying to compare the amount payable via that route compared to taking the maximum other normal retirement lump sums and surviving spouse/children’s pension.

Thanks in advance.

Dean

2.

xylophone

Below seems relevant.

https://contactcentreservices.nhsbsa.nhs.uk/selfnhsukokb/AskUs_Pensions/en-gb/5166/terminal-ill-health/16999/if-i-am-terminally-ill-can-i-claim-my-pension-as-a-one-off-lump-sum

If you are terminally ill and do not expect to live longer than a year, you can apply at retirement to exchange all of your ill-health benefits for a one-off, usually tax-free, lump sum payment. To be eligible to exchange your pension benefits in this way, you must have:
membership in the scheme on or after 6 March 1995
some of your HM Revenue & Customs (HMRC) personal Lifetime Allowance (LTA) remaining
If you take up this option, your dependants will still get any benefits they are entitled to in full.

Dean1970

Thank you Xylophone - that is useful. I called the NHS pension helpline today to ask this question but the person I spoke to was unable to tell me what the surviving spouse/children’s pension would be in these circumstances. I guess I need to ask them to confirm that the “full” spouse/children’s pension referred to there equates to the same amounts as available under the tier 1 and 2 retirement routes. If that is the case then it will make the decision straightforward.

crv1963

Sorry to hear of your wife health. My understanding of the scheme(s) is that whatever sum/ exchange your wife takes it makes no difference to the survivors and childrens pension on the scheme members demise. it is her pension, so she should maximise the benefit to her it does not have an impact on the pension you and your children will get as they are your benefits not hers.

xylophone

https://contactcentreservices.nhsbsa.nhs.uk/selfnhsukokb/AskUs_Pensions/en-gb/5166/terminal-ill-health/20176/if-i-apply-for-a-terminal-illness-lump-sum-how-will-this-be-calculated

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 applicable to them however no death gratuity lump sum would be payable in this case.


https://www.nhsbsa.nhs.uk/sites/default/files/2018-05/Survivors%20Guide%20%28V8%29%2005.2018.pdf

Dean1970

Thank you both for your replies