PSI8.3.18 - Commutation for Triviality or Serious Ill Health: Leaving Service On Grounds Of Serious Ill Health

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

[PN8.20]

A person who leaves service in mid-career in exceptional circumstances of serious ill health can have his or her pension commuted on the basis that he/she is retiring on incapacity grounds (see PSIPart10 Section 2) and is commuting an immediate pension. A person who

• has left service with an entitlement to a deferred pension, or
• is an ex-spouse and has an entitlement to a deferred pension credit benefit (see PSI24.1.1)

and

• later becomes seriously ill before the pension commencement date

may also commute that pension immediately if the scheme rules permit.