20.05.2026
The Pension Schemes Act 2026 has changed how terminal ill health payments work for Pension Protection Fund (PPF) and Financial Assistance Scheme (FAS) members.
In some cases, you may now be able to receive payments earlier after a terminal illness diagnosis.
What has changed?
Previously, you needed medical evidence showing you were expected to live for six months or less to receive a terminal ill health payment from us. Now, this has changed to 12 months.
This broadly aligns with the Department for Work and Pension’s’ social security payment definitions.
Why has this changed?
The change was made so that terminally ill members can access their payments earlier, to help ease any financial worries at this difficult time.
What does this mean for members?
If you’re terminally ill, you may be eligible to receive a terminal ill health payment sooner.
We’re able to make payments to PPF and FAS members who have been diagnosed with a terminal illness in certain circumstances:
PPF members diagnosed with a terminal illness can be paid a one-off lump sum providing you have not previously received compensation from us. If you receive a lump sum for terminal illness, you won’t receive any further compensation from us.
FAS members diagnosed with a terminal illness can start to receive their assistance payments at any age. However, you’re not entitled to a one-off lump sum on terminal illness. You’ll be offered the same options as if you retired on your normal retirement date.
Receiving a terminal ill health payment will not affect your dependents' eligibility for PPF or FAS benefits after your death.
For further information about terminal ill health payments, see the FAQs on the PPF member website or FAS member website.
If you think you’re eligible for a payment, you should send us a secure message via the PPF member website or FAS member website or contact us another way. We’ll then send you the relevant paperwork and quote.
