My pension if I die

What if I die before accessing my pension?

Spouse or civil partner’s pension

If you die before you retire, we will pay a pension to your spouse or civil partner of two-thirds of the pension you would have received if you retired due to ill-health. We will pay this to them for life.

Children’s pensions

We will pay a pension to your children if they are under 18, or under 23 and still in full-time education. We will pay their pension until they leave full-time education or until age 23, whichever is first.

The maximum children’s pension is one-sixth of your pension. The total pensions paid to your spouse or civil partner, plus your children cannot exceed your pension.

Life cover

If you are in pensionable service and under age 75, we will also pay a ‘life cover’ lump sum. This is three times the previous years’ National Minimum Stipend. The amount is pro-rata if you are part-time.

There is no need to provide evidence of health.

Additional Voluntary Contributions (AVCs)

If you have saved AVCs, we will pay the value of your AVCs as a lump sum to your beneficiaries.

Inheritance tax

As we have discretion over who to pay these lump sums to, the amounts fall outside of inheritance tax.

Lump sum if you are deferred

If you have left CEFPS, but not yet taken your pension, we will not pay a lump sum.

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 after before accessing my pension?

Spouse or civil partner’s pension

We will continue to pay two-thirds of your pension to your spouse or civil partner when you die.

When you retire, you have the option of giving up part of your pension for an extra tax-free lump sum. If you do this, we will still pay two-thirds of your original pension when you die.

Children’s pensions

We will pay a pension to your children if they are under 18, or under 23 and still in full-time education. We will pay their pension until they leave full-time education or until age 23, whichever is first.

The maximum children’s pension is one-sixth of your pension. The total pensions paid to your husband, wife or civil partner, plus your children cannot exceed your pension.

1 year guarantee period

Your pension comes with a 1 year guarantee. If you die within this time, we will pay the remaining payments as a lump sum.

Death within 3 years of ill-health retirement

If you retire due to ill-health but die within 3 years after retirement and before age 68, we may pay a tax-free lump sum.

If you die within 1 year after retirement, the potential lump sum is your life cover we would have paid if you died in service, less your retirement lump sum and the balance of your first year’s pension.

If you die between 1 and 3 years after retirement, the potential lump sum is reduced on a monthly basis, reducing to zero after 3 years.

The amount is your reduced life cover less your retirement lump sum.

Additional Voluntary Contributions (AVCs)

If you have saved AVCs, what happens to these depends which option you choose when you retire.

If you take your AVCs as cash, this money is likely to pass to your loved ones as part of your Estate.

If you move your AVCs into drawdown, any money you have not yet taken will pass to your loved ones, often tax-free.

If you use your AVCs to buy a guaranteed income for life, part of this can pass to your loved ones, but you need to pick this option when you retire.