What happens if I die before I receive my pension?
The benefits payable if you were to die before your pension went into payment are dependent upon the Section of the Plan of which you are a member.
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Closed TRW UK
If you die before retirement and you are....
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...Single
- A refund of your contributions (increased by interest at the rate of 5% a year) will be paid tax free.
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...Married
- A refund of your contributions (increased by interest at the rate of 5% a year) will be paid tax free.
- An immediate pension equal to half of your deferred pension increased to the date of your death.
Special provisions for young spouses
A spouse's pension is payable to the person you were married to at the date of your death. If your spouse is more than ten years younger than you then their pension will be reduced.
Unmarried dependants
If you do not have a spouse, a pension equal to the spouse's pension may be paid at the Trustee's discretion to an individual who is financially dependent upon you at the time of your death, e.g. a partner. The same restrictions that apply to pensions for young spouses also apply to pensions paid to dependants.
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Closed TRW Steering
If you die before retirement and you are....
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...Single
- A refund of your contributions will be paid tax free.
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...Married
- A refund of your contributions will be paid tax free.
- An immediate pension equal to half of your deferred pension increased to the date of your death.
Special provisions for young spouses
A spouse's pension is payable to the person you were married to at the date of your death. If your spouse is more than ten years younger than you then their pension will be reduced.
Unmarried dependants
If you do not have a spouse, a pension equal to the spouse's pension may be paid at the Trustee's discretion to an individual who is financially dependent upon you at the time of your death, e.g. a partner. The same restrictions that apply to pensions for young spouses also apply to pensions paid to dependants.
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ZF Great Britain
If you die before retirement and you are....
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...Single
- A refund of your contributions will be paid tax free.
- Children’s allowances may also be paid to those under 18 years.
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...Married
- A refund of your contributions will be paid tax free.
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An immediate pension calculated as:
- the annual rate of the spouse’s GMP.
- For service before 6 April 1997 a pension calculated as 1/160th for each completed year of service prior to 6 April 1997 multiplied by your pensionable salary at date of leaving.
- For service after 5 April 1997 a pension equal to half of your deferred pension increased to the date of your death.
Special provisions for young spouses
A spouse's pension is payable to the person you were married to at the date of your death. If your spouse is more than ten years younger than you then their pension will be reduced.
Unmarried dependants
If you do not have a spouse, a pension equal to the spouse's pension may be paid at the Trustee's discretion to an individual who is living permanently with you as if your spouse and who is financially dependent on you, or in a financial relationship of mutual dependence, or dependant on you due to physical or mental impairment.
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ZF Lemforder
If you die before retirement and you are still employed by ZF Lemforder Limited....
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...Single
- A refund of your contributions will be paid tax free.
- Children’s allowances may also be paid to those under 18 years (or under 23 if in full time education).
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...Married
- A refund of your contributions will be paid tax free.
- An immediate pension equal to half of your deferred pension increased to the date of your death.
If you die before retirement and you are no longer employed by ZF Lemforder Limited....
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...Single
- Children’s allowances may be paid to those under 18 years (or under 23 if in full time education).
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...Married
- An immediate pension equal to half of your deferred pension increased to the date of your death.
Special provisions for young spouses
A spouse's pension is payable to the person you were married to at the date of your death. If your spouse is more than ten years younger than you then their pension will be reduced.
Unmarried dependants
If you do not have a spouse, a pension equal to the spouse's pension may be paid at the Trustee's discretion to an individual who is living permanently with you as if your spouse.
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All other sections
If you die before retirement and you are....
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...Single
- A lump sum of twice your own normal contributions to the Plan.
- Plus a refund of your AVC account (if any).
- Children’s allowances may also be paid to those under 16 years (or 22 if in full time education).
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...Married
- A spouse’s pension of half your deferred pension as increased to the date of death, payable immediately.
- Plus your AVC account as a lump sum (if any).
- Children’s allowances may also be paid to those under 16 years (or 22 if in full time education).
Special provisions for young spouses
A spouse's pension is payable to the person you were married to at the date of your death.
If you married after your normal retirement date and more than six months before your death and your spouse is more than ten years younger than you then their pension may be reduced at the discretion of the Trustee.
If you were to die within six months of your marriage, and the marriage occurred after your normal retirement date, the Trustee has discretion to reduce the spouse’s pension payable.
Unmarried dependants
If you do not have a spouse, a pension equal to the spouse's pension may be paid at the Trustee's discretion to an individual who is financially dependent upon you at the time of your death, e.g. a partner. The same restrictions that apply to pensions for young spouses also apply to pensions paid to dependants.
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If there is a lump sum payable, it is payable at the discretion of the Trustee. This ensures the lump sum does not form part of your estate and is therefore generally paid tax free. In order to guide the Trustee as to whom it should pay the lump sum, you should complete a Nomination Form. The Trustee is not bound by this form but will consider it when it exercises its discretion as to whom the lump sum should be paid.