Lump sum death in service benefit
If you are a member of the DC Section and die while in service without having reached the greater of age 65 and State Pension Age, a lump sum death in service benefit of six times your Final Pensionable Earnings (2012) will be payable to your beneficiaries.
In addition to any lump sum death in service benefits payable, your beneficiaries will receive the value of your Member Account as a lump sum, or the value will be used to secure a spouse’s or dependants’ pension, as determined by the Trustee.
Payment of lump sum benefit
To ensure that the lump sum death in service benefit can be paid free from inheritance tax, the Trustee must have discretion when deciding to whom the benefit is paid. However, the Trustee will take your wishes into account when distributing the benefit.
You can nominate one or more beneficiaries to receive your lump sum death in service benefit by completing a Nomination form. If your circumstances change, and you wish to change your nominated beneficiaries then you should complete a new form.
Death benefits after leaving the Company’s employment
- A lump sum equal to the value of your account if you have one is payable (unless your contributions were refunded to you or your account has been transferred out of the DC Section);
- If your account has been used to purchase an annuity the death benefits will depend on the annuity you chose
Life assurance benefits can be restricted in circumstances where the insurance cover taken out by the Trustee does not provide the funds needed to pay benefits.