What happens to my DB pension if I pass away after leaving the scheme? (SHPS and SHAPS)

If you pass away after leaving the scheme, but before you start receiving your pension (and before you reach Normal Retirement Age) the benefits payable are:

Lump sum

A refund of your own contributions, with interest to the date of death will be payable unless you were a member of a salary sacrifice arrangement. If this is the case, 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 your employer.

Survivor’s pension

A survivor’s pension of 50% of your deferred pension at the date of your death may be payable. 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, a Guaranteed Minimum Pension (GMP) may be payable to your legal spouse, if you have one.

Except for legal spouses, the Trustee will need to confirm that the nominee for a survivor’s pension meets the relevant eligibility requirements at date of your death. Please refer to your scheme member guide for more information. 

Children’s pensions

A children’s pension of 12.5% of your deferred pension (calculated at the date of your death) may be payable to each of up to four eligible dependent children. For further information regarding the eligibility criteria for children’s pensions, please refer to your scheme member guide.

The payment of death benefits is at the discretion of the Trustee. To help them understand your wishes it is important that your nomination details are kept up to date through DB Online or by completing and returning a Nomination Form.