Benefits payable on death

If you die while an active member of the Scheme, your employer will notify UK Pensions Operations who will start the process of paying any death benefits.

We've included the process below.

You can nominate who you wish to receive the tax-free lump sum death benefit by quickly and easily updating your nomination details online via My Online Services.

If you're not married, you can nominate someone who is financially dependent or interdependent on you to receive the dependant’s pension. This can be done quickly and easily online via My Online Services.

In both cases, this will update your records immediately. You can log in and review or change your nominations at any time. If you’re unable to use My Online Services, you can complete a paper form, which is available on the documents page.

Any death benefits will be subject to the Lifetime Allowance.

Lump sum

The death-in-service lump sum payable would be equal to four year’s uncapped pensionable salary in the last year of your employment. For example:

For example
Uncapped pensionable salary = £20,000
Lump sum death benefit = £80,000
For GO21 members - the death-in-service lump sum would be based on 4 x uncapped protected pensionable salary.

The lump sum is paid by the Trustees who will take into account the person or people you have nominated on your Letter of Intent form.

This means the lump sum usually isn't subject to Inheritance Tax and it can be paid without delay.

Dependant’s pension

If you have a spouse or a civil partner a dependant’s pension would be payable for the rest of their life from the day following your death. Benefits would also be payable to eligible children.

Children includes step-children and adopted children. All children must be under age 18, or under age 21 if they are in full-time education or vocational training. The Trustees have the discretion to pay benefits to children up to the age of 23 if they remain in full-time education. If the Scheme's Medical Adviser confirms that a child can’t support themselves financially due to illness or incapacity, the Trustees can use their discretion to pay benefits for the rest of the child's life.

The section above tells you how you can let us know who you wish to receive benefits in the event of your death.

If someone dies in service

What's the process?
1 HR notifies UK Pensions Operations when a member dies
2 The team will send a letter to the member's next of kin within two working days of notification

Lump sum

3 We'll send your next of kin a questionnaire asking for information about potential beneficiaries

4 Your next of kin sends back the relevant information
5 We share this with the Trustees
6 The Trustees decide who the tax-free death lump sum should be paid to
7 Your beneficiaries will be notified and the payment made

Dependant’s pension

3 If you're married we’ll ask for additional details to set up a dependant’s pension; and pensions for any eligible children:

  • Death certificate (photocopy)
  • Birth and marriage certificates (originals or certified copies)
  • Bank form.
4 We then arrange the pension from the next available pay date, which is the 15th of each month