Benefits for dependants
This section explains what happens to your pension benefits when you die, whether that's before or after retirement. It covers the protections for your spouse, civil partner, and children, how lump sums and pensions are paid out, and why it's important to keep your nomination details up to date.
What happens to my retirement benefits when I die?
Protection if you die in pensionable service
If you die in pensionable service, your dependants will receive the following benefits:
Life assurance
A lump sum of four times your final pensionable salary when you die. Your spouse/civil partner can choose to receive a pension instead of part of this lump sum.
Spouse/civil partner’s pension
Your spouse/civil partner will get two thirds of the pension you would’ve received at normal pension age. This will be worked out using your final pensionable salary when you die and pensionable service you would’ve completed at normal pension age.
Children’s pensions
Pensions may also be paid to your eligible children.
Protection if you die after retirement
The Group continues to provide financial protection for your dependants after you retire.
Cash sum
If you die within five years of retirement, the outstanding pension payments for the remainder of the five years.
Spouse/civil partner’s pension
Two thirds of your pension when you die, worked out assuming you hadn't exchanged any pension for other options.
Children’s pensions
Pensions may also be paid to your eligible children.
Protection if you die before retirement but after leaving the Group
Benefits are also payable to your dependants after you’ve left the Group, if you die before retirement.
Cash sum
The tax-free cash lump sum you would've received, plus five times your remaining annual deferred pension, calculated as if your pension had become payable on the date you died.
Spouse/civil partner’s pension
Two thirds of your deferred pension at the date you died.
Children’s pensions
Pensions may also be paid to your eligible children.
Please note These amounts may be subject to certain limits as set out in the Group's Rules. These are also subject to change depending on whether you retire before or after your normal pension age.
Your spouse/civil partner may be able to elect to receive a lump sum instead of the whole or part of their pension.
Who can receive retirement benefits when I die?
Lump sum
The Trustee must decide who to pay any lump sum to – this currently means it can be paid free of inheritance tax.
To guide the Trustee, it’s very important that you complete your nomination online and keep it up to date, by logging into your OneView account. The Trustee doesn’t have to follow your wishes but will always take them into account.
Please note
If you joined the Group before 1 September 1986 you must complete a Notice of Direction by logging into your OneView account (found within the ‘Materials and Downloads’ section). If you don’t, the Group must pay the lump sum to your estate, and it will attract inheritance tax. You only ever need to complete this form once.
Spouse/civil partner’s pension
Your legal spouse is your husband, wife, or civil partner.
If you don’t have a legal spouse, the Trustee can decide to pay the pension to another dependant if you’ve completed your nomination online with their details. They must either be an eligible child, a person suffering from a disability and dependent on you (whether or not financially), or their finances must be interdependent with yours.