If you die within five years of taking your pension
Whenever your pension starts, it’s guaranteed for five years. This means if you die within five years of your pension starting (as long as you’re still under 75), until the fifth anniversary of retirement payments will continue to be made at the same level as you were receiving; these payments will go to your spouse. Once the guarantee period ends, payments to your spouse will reduce to broadly 50% of the pension you were receiving.
If you don’t have a spouse, a lump sum can be paid to a beneficiary, subject to Trustee discretion. This lump sum will be equal to the balance of the remaining guaranteed pension instalments (disregarding any increases).
If you die after five years of taking your pension
Spouse’s pension
If you die whilst working for the Company and you’re an active member of the Fund at the time you die but you have already started to draw a pension from the Fund, a spouse’s pension or a qualifying partner’s pension will be payable. Its value will be 50% of your pension, including any pension given up for cash at retirement that would have been payable to you at that date.
Children’s and dependants’ pensions
Dependent children will receive a pension until they are 18 (or 23 if they’re in full-time education or training approved by the Trustee).
All eligible children will receive a pension amount of 1/8th of the amount of pension income you were eligible to receive as at your date of death.
Where there’s no spouse or dependant (other than children) the children’s pension will be increased by up to a further 1/8th on all the amounts set out above.
The aggregate amount of Spouse’s pension and the children’s pension at any time will not exceed the member’s pension.
Children’s, dependants’ and spouses’ pensions increase at the same level as normal retirement pensions.
Nomination form
You should complete a nomination form for your DB Benefits to let the Trustee know how you’d like your death in service or deferment benefits to be distributed – you can update your nomination form by clicking here. The Trustee will take into account your wishes when it comes to paying these benefits, but ultimately the discretion to whom the benefits are paid remains with the Trustee.
You will need to complete a separate form for any DC Benefit you hold, please see the DC Benefits information below.