MyCompanyPension.co.uk - Helping members of occupational pension schemes to better understand their benefits.

12th December 2017
:: Scheme Member | Drawing My Benefits | Terminal Illness

Terminal Illness
 
In pension legislation, the phrase terminal illness is not used. Instead, the term ‘serious ill-health’ is used which is described as someone having a life expectancy of less than one year.
 
So, whilst you may be medically diagnosed as ‘terminally ill’ and perhaps have been told you have at most several years to live, the rules governing pension benefits are more rigid. Pension schemes can only consider ‘serious ill-health’ for someone having less than one year to live.
 
If you suffer serious ill-health and have a life expectancy of less than one year, you may be able to get the whole of your pension benefit exchanged and paid to you as a lump sum. This is called a ‘serious ill-health lump sum’ and is not to be confused with any other type of lump sum available from a pension scheme.
 
To find out more, choose one of our free Factsheets on the right to match your category of membership.
 
 
Not sure which category of member you are? See our definitions:
 
 
 
 
 
See our Glossary for definitions of phrases in our Factsheets
       
 
 
 
 
 
  Defined Benefit scheme members
 
Terminal Illness - for Active Members of Defined Benefit Schemes
Terminal Illness - for Preserved Members of Defined Benefit Schemes
Terminal Illness - for Pensioner Members of Defined Benefit Schemes
       
 
  Money Purchase scheme members
 
This Factsheet is not yet available for Money Purchase members.
This Factsheet is not yet available for Money Purchase members.
 
     

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