My pension if I die
If you die before you retire, we will pay your pension account to your beneficiaries.
If you die while still an active member, we will also pay a lump sum of 4x your salary.
What if I die before accessing my pension?
If you die before retirement, we will pay the value of your pension pot as a lump sum to your beneficiaries.
Life cover
If you are still in pensionable service, we will also pay a ‘life cover’ lump sum. This is four times your Pensionable Salary (this is your earnings over the last 12 months). There is no need to provide evidence of health.
Inheritance tax
As we have discretion over who to pay these lump sums to, the amounts fall outside of inheritance tax.
What if I'm terminally ill?
We understand that facing the prospect is extremely challenging. If you have less than 12 months to live we can pay the whole value of your pension pot to you, tax free.
This could enable you to spend money if you need to and leave money to your loved ones.
If you are facing this situation, please speak to us as soon as you can and we can help you through the process.
What if I die after accessing my pension?
What is paid to your family or loved ones depends on which option you choose when taking your pension pot.
What if I buy an annuity?
When you come to take your pension pot, you can exchange this for a guaranteed income for life, called an annuity.
You should check carefully what happens when you die after buying an annuity.
At the time you buy an annuity you will need to decide what passes to your dependents when you die. You cannot decide this later in life.
You will have the option of a survivor’s pension. This means your pension will continue to your husband, wife or civil partner after you die. You can pick the rate that it continues at.
You will also have the option of a guarantee period. If you die within this period, the remaining amount for that period is paid as a lump sum.
What if I take my pot as cash?
If you take your whole pot as cash, we pay this directly into your bank account.
After this, it is up to you to decide how to use this money. What is left for your loved ones will depend on how you use this.
What if I drawdown from my pot?
You can leave your money in your pension pot and take lump sums or income from it when you need, until your money runs out or you choose another option. You decide when and how much to take out.
If you die while drawing money from your pot, whatever is left will pass on to your dependents.
Nominating beneficiaries
We aim to pay both lump sums to whoever you nominate. This could be family members, loved ones, or charities.
We have discretion over who receives the final amounts. We do not have to follow your wishes if we feel it is sensible to override this, but we will always be guided by your wishes.
You can add your nomination on PensionsOnline. It is important to update your nomination if your circumstances change.