What if I die?
classic
What happens if I die in service?
If you die while still working in the Civil Service, the lump-sum death benefit is normally equal to two years’ pensionable pay. If you are part time, it is normally equal to two years’ actual part-time pensionable earnings. We will pay this benefit to the person you nominated no matter how long you have been working for us. If you have not nominated anyone, or your nomination is invalid, we will pay it to your personal representative. This benefit will be reduced if you still have to make contributions for benefits for your widow, widower or civil partner and incapacitated children.
What happens if I die after I retire?
If you die after retiring, a lump-sum death benefit may be payable. We work it out as the difference (if any) between five times your annual pension on the date you died and the total pension and lump-sum payments you have already received. We will pay it to the person you nominated or your personal representative.
What if I die after leaving or opting out of my pension arrangements
The lump-sum death benefit is equal to the preserved lump sum that would otherwise have been paid to you if you had taken your pension. We will pay it to the person you have nominated or to your personal representative.
How do I nominate someone to receive benefits?
You can nominate any person (including a child) or organisation (such as a bank, a trustee, a firm of solicitors or accountants) to receive the lump-sum death benefit. If appropriate, you can ask the person you have nominated to distribute the benefit in line with your wishes, although you should take legal advice on this. The advantage of making a nomination is that the benefit can be paid more quickly. If you do not make a nomination, or if it is not valid when you die, we will pay the benefit to your personal representative.
HM Revenue & Customs regulations do not take account of the lump-sum death benefit when assessing liability for inheritance tax, whether or not you have made a valid nomination. The nomination will be valid unless you change or cancel it, or if the person you nominated dies. The one exception to this is when you nominate your husband or wife and the marriage comes to an end, either through death or divorce (but not separation). The nomination is then no longer valid and you should make another one.
You can make nominations using the form that you can get from your pensions administrator. Please make sure that you keep it up to date and that you send us a new nomination if your wishes or circumstances change.
Important note. At the time of a divorce, a court may order that when a scheme member, or a previous member, dies, all or part of the death benefit must be paid to the ex-husband or ex-wife or ex-civil partner. If this is the case, we will pay any balance to the person you nominated or to the personal representative of the person who died if there is no valid nomination.
Find out more
For more information, see the following booklet: Your classic pension benefits explained [PDF 234KB, 36 pages].
