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Small lump sum payment – reminder for employers

Due to the transition to the 2015 Scheme, NHS Pensions has seen an increase in members eligible to claim their benefits under the small lump sum payment processes.

To confirm, our existing process is as follows:

When an AW8 is submitted, and the 2015 Scheme benefits have been selected for payment the benefits team check the member record to confirm if they are eligible to claim any portion of their benefits under small lump sum payment.

If they are eligible, the member will be sent an options letter for them to confirm their choices. This will be sent to their email address if held, if not it will be sent to their postal address. The member will then need to review and submit their response before the award can be processed.

The reason we cannot complete part payment of benefits is that we need to ensure that the lifetime allowance information is correct for any benefits paid.

Please note, if we do not receive the response from the member in a timely manner, this could delay their payment. If a payment is delayed, we will assess the record to determine if there is any interest due to the member and this will be processed separately. We ask that all applications to retire are submitted three months ahead of the retirement date.

Please can you ensure when submitting an AW8, that you ensure the member has made a choice about whether they want to claim their 2015 Scheme benefits, as this will aid processing.

We are reviewing the process at this time following comments from employers. We will keep you updated of any developments.