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TPT Retirement Solutions
FAQs

I'm an active member, but what happens if I die before my pension starts? (DB Schemes, SHPS and SHAPS)

CATEGORIES:

  • Members
  • Payments

If you die whilst you are member of the scheme and before you reach Normal Retirement Age the benefits payable are:

Lump sum 

Three times your pensionable earnings at the date you die; and a refund of your own contributions with interest to the date of death. If you have been in a salary sacrifice arrangement there will be no refund of contributions for the period of time that you were in this arrangement as all the contributions the scheme received were from the employer.

Survivor’s pension 

50% of the pension you would have received, calculated based on the pension earned up to your death, plus the prospective pension from that date to your normal retirement date will be paid to your Survivor from the day after you died. Please have a look at your scheme guide for members as this will provide more information to you.

If you were in the scheme before 6 April 2016, you may have been ‘Contracted-out’ of the Additional State Pension. If you were Contracted-out for service before 6 April 1997, there will be a Guaranteed Minimum Pension (GMP) which will be paid to your legal spouse, if you have one.

Children’s pensions

12.5% of the pension you would have received, based on the pension earned up to your death, plus the prospective pension from that date your normal retirement date will be paid to each of up to four dependent children from the day after you died. For further information regarding the eligibility criteria for children’s pensions, please refer to your scheme guide for members.

You should note that, except for legal spouses, it will be necessary for the Trustee to get confirmation that the nominee for a survivor’s pension is eligible at the date of a member’s death. For further information regarding the eligibility criteria for survivor’s pensions, please refer to your scheme guide for members.

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.