Death in retirement
If you die while in receipt of a pension, any benefits payable will depend on when you retired and if you have any dependants when you die.
Depending on your circumstances the Scheme can provide:
- A lump sum death payment
- Survivor’s pensions
- Children’s pensions
Have you completed a Death Grant Nomination Form?
Lump Sum Death Payment
You left before 1 April 2008
If you die within 5 years of retiring and are under 75 at the time of death, your beneficiary/beneficiaries will receive a lump sum payment equal to 5 times your annual pension less any pension already paid.
You left on or after 1 April 2008 but before 31 March 2014
If you die within 10 years of retiring and are under 75 at the time of death, your beneficiary/beneficiaries will receive a lump sum payment equal to 10 times your annual pension less any pension already paid.
You left on or after 1 April 2014
If you die within 10 years of retiring and are under 75 at the time of death, your beneficiary/beneficiaries will receive a lump sum payment equal to 10 times your annual pension less any pension already paid. If you elected to convert some of your pension to lump sum at retirement. An adjustment is made to the death grant to take this into account.
If you are still paying into your pension when you die and also have separate benefits on hold or in payment (either with The Cheshire Pension Fund or in another local government pension fund) then the death grant will be the greater of:
- The total of any death grants payable from the benefits on hold and/or pensions in payment; or
- Three times your annual pay at your date of death.
When you die, we may be able to pay a pension to your husband/ wife or your civil partner or your cohabiting partner and your dependent children.
The amount of pension is based on how long you were in the Scheme, your pay when you retired, and any dependants you leave. The pension will be payable for life to your husband/ wife or your civil partner or your cohabiting partner even if they remarry. For full details of how your Survivor’s Pension will be worked out visit : www.lgpsmember.org/help-and-support/frequently-asked-questions/?faq-type=all#will-a-pension-be-paid-to-my-partner-when-i-die
If you got married after you retired, not all your membership may count towards a pension for your husband or wife, civil partner or cohabiting partner.
Nominated Cohabiting Partners – the scheme includes a cohabiting partner’s pension for dependant partners in both opposite and same sex relationships. The definition of a qualifying partner is:
- You must have lived with your partner in a permanent exclusive relationship for a minimum of two years.
- You must be legally free to marry or to enter into a civil partnership.
- You and your partner are living together as if you were husband and wife or as if you were civil partners.
- You and your partner must be financially interdependent.
- Any nomination for a partner’s pension will be void if the conditions above have not been continuously met for at least two years on the day the partnership declaration has been signed.
Some examples of financial interdependency accepted by HMRC (these are not exhaustive and not all need to be met) are:
- You share a household and its related costs.
- You have a joint bank account or mortgage.
- You have named each other as beneficiaries in your wills.
Cohabiting partner’s pensions are only based on your Scheme membership from 6 April 1988. You have to have paid into the LGPS on or after 1 April 2008 for a pension to be payable to your eligible cohabiting partner.
To nominate a cohabiting partner, please complete the following form nominating your cohabiting partner.
Children’s pensions are payable for so long as eligible children remain following your death. To be eligible your children must at the date of your death:
- be under 18 and be wholly or mainly dependant on you, or
- be aged 18 or over and under 23, be dependent on you, and be in full time education or undertaking vocational training (although a dependant child who commences full-time education or vocational training after the date of your death may be treated as an eligible child up to age 23), or
- be unable to engage in gainful employment because of physical or mental impairment and either:
- has not reached the age of 23, or
- the impairment is, in the opinion of an independent registered medical practitioner, likely to be permanent and the child was dependent on you at the date of your death because of that mental or physical impairment. (In this context gainful employment means paid employment for not less than 30 hours in each week for a period of not less than 12 months).
- in all cases, the children must have been born before or within a year of your death.
The amount of pension depends on the number of children you have:
If a survivor’s pension is being paid to your husband, wife, civil partner or nominated co-habiting partner, one child would receive 1/320th of your final pay times the total membership your deferred pension is based on, while two or more children would receive 1/160th shared equally between them.
If there is no husband, wife, civil partner or nominated co-habiting partner’s pension being paid, one child would receive 1/240th of your final pay times the total membership your deferred pension is based on, while two or more children would receive 1/120th shared equally between them.
Please note. The pension may be reduced if your child is receiving pay while in full-time training for a trade, profession or vocation.