If you die after leaving the Scheme but before your pension has started, the following benefits are payable:
- A cash sum equal to the maximum tax-free cash lump you could have received when your pension started, plus 5 x your remaining deferred pension;
- A pension for a spouse, civil partner or other financial dependant; and
- A pension for any eligible children, provided that they were born before you left service.
Don’t forget to keep your Nomination Forms up to date!
The Trustee has discretion over who receives any lump sum benefits payable. This means that they are generally exempt from inheritance tax. So that the Trustee knows who you would like to receive any lump sum, you need to complete a Nomination for Lump Sum Life Assurance Benefit Form. If you haven’t completed a form recently, or your wishes change, make sure you submit a new form. This will help the Trustee to consider your wishes and make any decisions regarding lump sum benefits. Please note that although the Trustee will take your wishes into account, it is not legally obliged to follow them.
If you are not married or in a civil partnership, or have other financial dependants, you may also wish to complete a Nomination for Dependant’s Pension Benefit Form. This will let the Trustee know of any financial dependant that you would like to receive a dependant’s pension in the event of your death. The Trustee has the final say in who receives any dependant’s pension payable, and will use your form to help them make their decision.