Death Benefits
What happens if I die before my pension starts?
If you die while in employment and are contributing to the Scheme as required by your employer, the benefits are:
| » |
Lump Sum |
» |
Survivor’s Pension |
» |
Children’s Pensions |
•
• |
three times your pensionable
earnings at the date of your death; and
a refund of your own
contributions, with
interest.
|
• |
50% of the pension you would have received, calculated on full pensionable service to
age 65 and your
pensionable earnings
at the date of your death. |
• |
12.5% of the pension you would have received, calculated on full pensionable service to
age 65 and your pensionable earnings
at the date of your death, would be paid to each of up to four dependent children.
|
See Important Notes
What happens if I die after leaving the Scheme?
If you die after leaving the Scheme but before you start receiving your pension the benefits are:
| » |
Lump Sum |
» |
Survivor’s Pension |
» |
Children’s Pensions |
•
|
a refund of your own
contributions, with
interest.
|
• |
50% of the pension you would have received, calculated on the
value of your deferred pension at the date of your death.
|
• |
12.5% of the pension you would have received, calculated on the value of your deferred pension
at the date of your death, would be paid to each of up to four dependent children.
|
See Important Notes
What happens if I die after my pension starts?
When you die after your pension has started the benefits are:
| » |
Lump Sum |
» |
Survivor’s Pension |
» |
Children’s Pensions |
•
|
if you die within five years of the start then a lump sum is paid. This is equal to the unpaid balance of the first five years’ pension payments, the balance payable at the current rate of pension at the date of death.
|
• |
50% of your pension (calculated on your full pension before you
took any tax-free cash and including increases to your pension).
|
• |
12.5% of your pension
(calculated on your full pension before you took any tax-free cash and including increases to
your pension) would be paid to each of up to four dependent children. |
See Important Notes
Important Notes
If you joined the Scheme before 1 October 1997 a survivor’s pension will only be provided for any period when you paid full-rate contributions.
If your survivor is more than 10 years younger than you, the pension will be reduced by 2.5% for each year in excess of 10 that he/she is younger than you.
Except for legal spouses, it will be necessary for the Trustees to receive confirmation that the nominee for a pension is eligible at the date of the
member’s death.
Because of the regulations governing schemes which are ‘contracted-out’ of the additional State pension, the Widow’s/Widower’s Guaranteed Minimum
Pension, or Minimum ‘Reference Scheme’ pension (for any member’s service from 6 April 1997), will always be provided, and must be paid to a legal spouse, if you have one, from the date of your death.
Do I Need To Update My Nominations?
You should ensure that your nominations are kept up to date. If you wish to make any changes to the nomination, please notify The Pensions Trust in writing.
If you would like to download the Nomination Form click here
Who Is Eligible For The Lump Sum?
| » |
Lump Sum May Be Paid To: |
•
•
• |
one or more persons or organisations;
if you choose more than one, you must state the percentage you want each person or organisation to receive;
you should not use the words ‘Executor’, ‘Administrator’, ‘In Trust for’ or ‘Estate’ for your nomination, but the proper names of persons or organisations.
|
Who Is Eligible For The Survivor's Pension?
| » |
Survivor’s Pension May Be Paid To: |
•
•
•
• |
your spouse or ex-spouse; or
anyone who lives with you and shares the living expenses; or anyone who is financially dependent on you (A child may only be nominated as described
below.);
you may nominate a child (of any age) who is disabled and is unable to earn a living (in this case the child would be paid the survivor’s pension, but not the
child’s pension);
you may nominate a dependent child to receive the survivor’s pension only up to the date he or she ceases to be treated as a “Child” (See Who Is Eligible For The Children's Pension? for definition of Child). No other child’s pension can be paid at the same time.
|
Who Is Eligible For The Children's Pension?
| » |
Children’s Pensions May Be Paid To: |
•
•
•
• |
any child who is aged under 18; or
any child below age 22 if in fulltime education; or
a child of any age who is disabled and unable to earn a living, unless the child is already receiving a survivor’s pension;
“Child” will have the meaning defined in the formal rules.
|
Are There Any Circumstances That Affect The Children's Pension?
Children’s pensions cease on reaching age 18, or 22 if in full-time education, unless the child is disabled and unable to earn a living when the pension can continue for the rest of that child’s life.
Children’s pensions will be doubled if:
| no survivor’s pension is paid |
OR
|
dependent children are orphans or become orphans |
What If I Joined The Scheme Before 1 October 1997 ?
You had the choice of paying:
full contributions to provide for a survivor’s
pension |
OR
|
reduced contributions and not providing for a
survivor’s pension |
The reduced contribution is 1% lower than the full contribution. The 1%
reduction now applies to the new contribution rates.
You may have delayed paying the 1% contribution for a survivor’s pension until later in your membership. In this event, the pension for your nominated survivor will be calculated from the date on which you start to pay the full rate of contribution. Once you decide to pay the additional contribution, you will not be able to reverse your decision.
If you have paid the full contribution and choose not to provide for a survivor’s pension, you may take an increased pension for yourself. In this case for any
period of Scheme membership before October 1997, when you paid the full contribution, then for each 8 months of the Scheme membership you will gain an
additional one month’s pensionable service. For service from October 1997 see
Do I Have To Provide A Spouses Pension?
These options do not apply to deferred members who left before 6 April 1992