What happens if I die after my pension starts? (DB Schemes except SHPS and SHAPS)

Defined Benefit schemes except SHPS and SHAPS

If you die after your pension has started, the benefits payable are:

Lump sum

If you die within the first five years of your retirement then a lump sum would be payable because under the rules of your scheme your pension is guaranteed to be paid for at least this number of years. The remaining balance of the five years of payments will be paid as a lump sum.

For example, if you were in receipt of a pension of £1,000 per year and you died after two years, there would be three years of the five year guarantee left to pay. The Lump Sum death benefit in this scenario would be £3,000.

Survivor’s pension and children’s pension

A survivor’s pension and/or a child’s pension may also be payable. This depends upon the rules of your scheme and also on the options you took at retirement. Please have a look at your schemes guide for members as this will provide more information to you.

You should note that the payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nominees are kept up to date by updating your details in DB Online or completing and returning a Nomination Form.