Death Benefits
As well as providing retirement benefits the Pension Scheme also provides valuable life assurance benefits to help protect your dependants. This section describes these benefits.
Death in service benefits
Death in deferment
Death after retirement
What happens if I die whilst working for the Group?
If you are a full member of the Scheme and die in service before your Normal Pension Date, the benefits will be as follows:
| A lump sum payment of four times your Base Salary (subject to the Scheme Cap) at the date of your death | plus | A spouse's pension of one half of the pension you would have received if you had remained a member of the Scheme until your Normal Pension Date, but calculated using your Final Pensionable Salary (sbject to the Individual Salary Cap) at the date of your death. | plus | A refund of any contributions you have made to the Scheme, including your accumulated additional voluntary contributions. |
What benefits are payable if I die in service after Normal Pension Date?
If you die having continued working after your
Normal Pension Date, and you are not in receipt of your pension, the benefits payable will be calculated as if you had retired on the date of death and taken the maximum cash sum as described in
here).
If you die having continued working after your
Normal Pension Date and you are already in receipt of a pension then the rules that apply under Death after Retirement will apply.
Are pensions payable to Civil Partners?
Yes. The Trustees effected a Deed of Amendment in
March 2018 to widen the definition of spouse under the Scheme Rules to include
civil and same sex partners. This,
therefore, means that civil and same sex partners are treated the same as if
they are of an opposite sex spouse and are also entitled to the same benefits.
Are dependants' pensions payable?
Yes, dependants pensions are payable at the discretion of the trustees to long term partners who are financially interdependent but only where there is no spouse. The amount payable is also at the discretion of the trustees but must not be more than the equivalent spouse's pension.
Are children's pensions payable?
Yes, but only if there is no spouse. To be eligible for a children's allowance they must be either your own children, adopted children or financially dependant on you and they must be under age 18 (or under 23 if in full-time education). The amount of children's allowance payable is equal to the spouse's pension and will be split equally between any qualifying children.
Key notes:
- If your spouse is more than 15 years younger than you, the spouse's pension will be reduced.
- Your spouse would be entitled to a spouse's pension provided that you have been married for at least six months at the date of your death. If you have been married for less than six months, payment of the spouse's pension would be at the discretion of the Trustees. Proof of marriage will be required before the spouse's pension is paid.
- Your spouse's pension will continue to be paid until his/her death, even if he/she remarries, and will receive guaranteed annual increases on the same basis as other pensions in payment.
- The Trustees have absolute discretion as to who will receive any lump sum payable from the Scheme on your death. You may, however, nominate your preferred beneficiaries by completing a "Wishes Letter". Click here to complete a Wishes Letter.
- The Base Salary used to calculate the lump sum death benefit and the Final Pensionable Salary used to calculate the spouse's pension cannot exceed the Scheme Cap if you joined the Scheme on or after 1 June 1989.
- If a member dies between the age of 60 and 75 and a spouses pension becomes payable, it is possible to commute the spouses pension in exchange for a cash lump sum as long as the cash value of the pension is less than £30,000. 25% of this cash sum would be tax free and the rest would be taxed at marginal rate.
Death in Deferment
What happens if I die as a defered member?
If you leave the Scheme on or after 1 January 2002 and then die before your pension comes into payment your spouse will receive a pension equal to 50% of your deferred pension increased between your date of leaving and the date of death.
If you left the Scheme before 1 January 2002 your spouse will receive a pension equal to 50% of the element of your deferred pension which represents your rights from contracted-out employment.
In addition to the pensions set out above any personal contributions to the Scheme, including AVCs, will be paid as a lump sum.
Are pensions payable to Civil Partners?
Yes. The Trustees effected a Deed of Amendment in March 2018 to widen the definition of spouse under the Scheme Rules to include civil and same sex partners. This, therefore, means that civil and same sex partners are treated the same as if they are of an opposite sex spouse and are also entitled to the same benefits.
Are children's pensions payable?
Yes, but only if there is no spouse. To be eligible for a children's allowance they must be your own children, adopted children or financially dependant on you and they must be under age 18 (or under 23 if in full-time education). The amount of children's allowance payable is equal to the spouse's pension and will be split equally between any qualifying children.
Key notes:
- If your spouse is more than 15 years younger than you, the spouse's pension will be reduced.
- Your spouse's pension will continue to be paid until his/her death, even if he/she remarries.
- If you marry, or re-marry, after retirement your spouse will qualify for a pension provided that you have been married for at least six months before your death
- Proof of marriage will be required before the spouse's pension is paid.
Death after retirement
What happens if I die after my pension has started?
If you die after your pension has started, the following benefits will be payable:
| A spouse’s pension of one half of your own pension at the date of your death (or if you took tax free cash at retirement, one half of the pension you would have been receiving had you not taken any cash). | plus | If you die between the age of 60 & 75 and within five years of the date of your first pension payment, your spouse or beneficiaries will receive a cash lump sum equal in value to the unpaid instalments of your pension for the balance of the five year period
If you die over 75 the trustee will pay the remaining instalments as additional pension to the dependants |
Are pensions payable to Civil Partners?
Yes. The Trustees effected a Deed of Amendment in March 2018 to widen the definition of spouse under the Scheme Rules to include civil and same sex partners. This, therefore, means that civil and same sex partners are treated the same as if they are of an opposite sex spouse and are also entitled to the same benefits.
Are dependants' pensions payable?
Yes, dependants pensions are payable at the discretion of the trustees to long term partners who are financially interdependent but only where there is no spouse. The amount payable is also at the discretion of the trustees but must not be more than the equivalent spouse's pension.
Are children's pensions payable?
Yes, but only if there is no spouse. To be eligible for a children's allowance they must be your own children, adopted children or financially dependant on you and they must be under age 18 (or under 23 if in full-time education). The amount of children's allowance payable is equal to the spouse's pension and will be split equally between any qualifying children.
Key notes:
- If your spouse is more than 15 years younger than you, the spouse's pension will be reduced.
- Your spouse's pension will continue to be paid until his/her death, even if he/she remarries.
- If you marry, or re-marry, after retirement your spouse will qualify for a pension provided that you have been married for at least six months before your death
- Proof of marriage will be required before the spouse's pension is paid.
