What happens when I die?

Pensions may be payable to your spouse, adult dependants or children depending on certain criteria.

A spouse’s pension is payable of:

• Half of your pension at retirement before you exercised any options (but excluding any pension purchased with Additional Voluntary Contributions (AVCs); plus,
• Any additional spouse’s pension you provided by exchanging part of your pension at retirement; plus,
• Any percentage increases awarded since you retired.

If the value of the spouse’s pension is below a prescribed value then the pension may be paid as a lump sum instead of a pension.

If you die in retirement before you’ve received your pension for five years a tax-free lump sum will be payable. It will be the balance of five years’ pension based on the amount of your pension at your date of death excluding Temporary Pension. Future pension increases are not taken into account.

• Example calculation

  Date of retirement:	1 April 2013
  5 Year guarantee ends:	31 March 2018
  Member dies:	15 March 2015
  Last payment of pension:	March 2015
  Current pension:	£500 a month

  Balance of unpaid pension:

  Unpaid period:	1 April 2015 (1st of the month following death) to 31 March 2018 (end of guarantee period) =3 years
  Unpaid pension	£500 x 12 = £6,000 a year
  Guarantee payment:	£6,000 x 3 years = £18,000

If you have no spouse, adult dependant or children and your pension has been in payment for more than five years there are no further benefits payable.

• Do I need to complete a Nomination Form?

  If you die before you have received your pension for five years a tax-free lump sum may be payable.

  Your Nomination Form is used by the Trustee to help it decide who should receive any of this cash benefit that may be payable in the event of your death.

  It is therefore a good idea, for the first five years after retirement, to ensure that you complete a Nomination Form and that it is kept up-to-date if your circumstances change.

  You can download a Nomination Form from this website.