What happens if I die?

The benefits that are payable in the event of your death depend on whether you die before or after taking retirement, and whether you are still working for FDR Limited or not. 

To help the Trustees decide who they should make any lump sum payments to, you should complete an Expression of Wish form. The Trustees aren’t legally bound by your wishes, but it will help them in making their decision.

Death in Service before Normal Retiring Date

If at the time of your death you are still working for FDR Limited and you were a member of the DB Scheme at the closure date on 30 June 2009, your spouse or civil partner would be entitled to a pension based on the greater of:

  • one-third of your Pensionable Earnings at 30 June 2009; or
  • 50% of your pension entitlement as at 30 June 2009

These amounts are subject to revaluation for each complete year between 30 June 2009 and your date of death.

In addition to a pension, any contributions you paid while you were a member of the DB section will be paid out as lump sum. This lump sum would be paid to your beneficiaries at the discretion of the Trustees.

Death after leaving Service but before Normal Retiring Date

If at the time of your death you have a deferred pension in the DB Section but are no longer working for FDR Limited, your spouse or civil partner would be entitled to a pension calculated as follows:

  • any Guaranteed Minimum Pension payable to your spouse or civil partner; plus
  • 50% of your pension entitlement relating to Service after 5 April 1997

A widow will generally be entitled to 50% of a member’s Guaranteed Minimum Pension. A widower or civil partner will generally be entitled to 50% of the Guaranteed Minimum Pension relating to service between 6 April 1988 and 5 April 1997 only.

Note that the pension is only payable to a legally married spouse or civil partner and not to an unmarried partner.

In addition to a pension, any contributions you paid while you were a member of the DB section will be paid out as lump sum. This lump sum would be paid to your beneficiaries at the discretion of the Trustees.

Death after Normal Retiring Date but before taking pension

If you have passed your Normal Retiring Date but have not yet taken your pension, your spouse or civil partner would be entitled to a pension calculated as follows:

  • 50% of the pension you would have been entitled to if you had retired on the day before your date of death

In addition, a lump sum would be payable equivalent five years' worth of the pension instalments you would have received if you had retired on the day before your date of death. This lump sum would be paid to your beneficiaries at the discretion of the Trustees.

What happens if I die after taking my benefits

If you die after you have retired from the Scheme, a pension will be payable to your spouse or civil partner. The pension will be calculated as follows:

  • if you did not take a cash lump sum on retirement, 50% of the pension you are receiving at your date of death; or
  • if you did take a cash lump sum on retirement, 50% of the pension you would have been receiving at your date of death had you not exchanged part of it for a lump sum

In addition, if you die within five years' of retiring from the Scheme, a lump sum would be payable equivalent to the balance of the first five years' worth of the pension instalments.

If you do not leave a spouse or civil partner, the pension would still be payable if you have any children under the age of 18 or up to age 23 if they are in full time education.

The amount of the spouse’s or civil partner’s pension may be reduced if your spouse or civil partner is more than ten years younger than you, or if you married or entered into a civil partnership after retirement and died within six months of your marriage/civil partnership.

If you paid any voluntary contributions to provide extra pension, a pension to your spouse or civil partner would only be payable in respect of your extra pension if you arranged this at your retirement.

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