Improving access and fairness in the LGPS
The Government has introduced changes to the Local Government Pension Scheme (LGPS) regulations to make the Scheme fairer for all members. Most changes will take effect from 1 April 2026, and some improvements apply retrospectively.
Changes to death grants
Removal of the age limit
The age limit for paying a lump sum death grant has been removed. A death grant can now be paid even if a member dies after age 75. This change is backdated to cover deaths from 1 April 2014.
A death grant is only paid in limited circumstances when an LGPS member dies after age 75. We are working to identify any new death grants in respect of members who died after age 75 since April 2014. Where necessary, we will contact beneficiaries and / or personal representatives to arrange payment of the death grant. Interest for late payment will be added.
For information about when a death grant is payable visit the LGPS member website FAQ’s and click ‘After you die.’
More discretion over who receives the death grant.
We no longer have to pay late death grants to personal representatives. A late death grant is usually one that is not paid within two years of the date of death. Before 1 April 2026, this could only be paid to personal representatives.
Now the pension fund can use its discretion to choose the most appropriate beneficiaries. This means the death grant will be taxed at each beneficiary’s marginal rate of tax, rather than the 45% charge that applies when it is paid to personal representatives.