What benefits will be paid when I die?
On your death, pensions will be paid to your:
- eligible children
- spouse, civil partner, or, if certain conditions are met, eligible cohabiting partner.
A lump sum death grant will also be paid if you:
- die in service as a member of the LGPS
- leave before retirement with deferred benefits and die before receiving them
- die after receiving your pension, before age 75, if less than ten years’ pension has been paid.
How much will the lump sum death grant be?
This will depend on whether you die in service, after leaving but before you take your pension or when you are receiving your pension.
If you die in service as a member of the LGPS, the lump sum is three times your assumed pensionable pay.
If you leave before retirement with deferred benefits and you die before receiving them, the lump sum is five times your deferred yearly pension. If you are also an active member of the Scheme in another employment, this may impact on the death grant that is paid.
If you die when you are receiving your pension and before age 75, the lump sum is ten times the yearly amount of your pension before giving up any pension for tax-free lump sum. The final amount is then reduced by any pension and tax-free lump sum already paid to you. There is a slight difference to this calculation for any part of the pension you were receiving which relates to membership before 1 April 2014. If you are also an active member of the Scheme in another employment, this may impact on the death grant that is paid.
Who is the lump sum death grant paid to?
The LGPS allows you to say who you would like any death grant to be paid to by completing an expression of wish. The Fund retains absolute discretion when deciding who to pay any death grant to. Find out how to make an expression of wish nomination.
What will be paid to my surviving partner?
Your spouse, civil partner or eligible cohabiting partner will receive a proportion of your pension. It will be paid for the rest of their life. Generally, this is:
- 30.625 per cent of the pension you built up from April 2014
- 37.5 per cent of the pension you built up between April 2008 and March 2014
- 50 per cent of the pension you built up before April 2008.
If you die in service as a member of the LGPS, the pension will include a proportion of the enhancement you would have received if you had retired on ill-health.
If you leave before retirement with deferred benefits and die before taking them, the pension is the relevant percentage of your deferred pension.
If you die after receiving your pension, the pension is the relevant percentage of your pension before giving up pension for tax-free lump sum and before any reductions or increases for early or late payment.
Some parts of your pension are not counted. This includes additional pension bought by paying additional pension contributions.
If you were in the 50/50 section, this does not affect the value of the survivor’s pension.
Pensions for eligible cohabiting partners are based on your membership after 5 April 1988, unless you elected before 1 April 2014 to pay extra contributions for membership before 6 April 1988 to count.
The survivor’s pension may be less if you entered into a civil partnership or marriage after leaving.