If you die while an active member of the Scheme, the following may be payable:
- A Life Assurance cash sum payment equal to four times your Pensionable Salary;
- A ‘Spouse’s Pension’ of two thirds of the pension you would have received at NPA, which is payable to your Spouse, Civil Partner or at the Trustee’s discretion to a financial Dependant; and
- Allowances for your eligible children (maximum of two) which is equal to one half of the Spouse’s Pension. If you have more than two children, the allowance for two is divided equally between all your children.
Example
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Pension at NPA
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£10,000 a year
|
|
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2/3
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Spouse’s Pension
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£6,667 a year
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|
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1/2
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Child’s Pension
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£3,334 a year
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Lump sum death benefits
To ensure that the lump sum can be paid without delay and does not form part of your estate, and is therefore not subject to inheritance tax, the Trustee has discretion to decide to whom it should be paid. Under the rules of the Scheme we can consider paying this money to anyone you have named on your Dependant Nomination Form. To guide the Trustee, you should check that you have completed and returned a confidential Life Assurance Nomination Form. Although the Trustee will take your wishes into account, they are not legally obliged to follow them.
It is important that you submit a new form if there is a change in your personal circumstances for example, if you get married or divorce, register or end a Civil Partnership or if you have children. You can print off a new Life Assurance Nomination Form and once completed and signed you should post this to the Pensions Administration Team at the address shown on the form.
If you joined before 1 September 1986 please complete a Rule 22 Notice of Direction if you have not already done so. This Notice arranges for the Trustee to pay the cash sum at their discretion. You can also suggest to us who you would like to receive the money. If you do not complete a Notice, the Scheme must pay the cash sum to your estate, and it may be subject to inheritance tax.
Spouse’s/Civil Partner/Children/Dependant’s Pension
Your legal Spouse is your husband, wife, same-sex spouse or Civil Partner. If there is no Spouse/Civil Partner or you have submitted a Dependant's Pension Nomination Form, the Trustee can decide to pay the pension to another person who depends on you financially or whose finances were interdependent with yours.
The Trustee has discretion in certain circumstances to pay all or part of the pension to someone other than your Spouse or Civil Partner, who is financially dependent on you or a person with whom you cohabited and were financially interdependent with in order to maintain a standard of living which depended on your joint income. If you would like the Trustee to consider a Dependant for this benefit, please include details on the Dependant's Pension Nomination Form. A Dependant can include a partner, your children or any other financially dependent member of your family.