If you die before normal retirement age and have a deferred pension, the following benefits are payable:
Qualifying spouse or nominated dependant
Your qualifying spouse or nominated dependant will be entitled to two-thirds of your deferred pension, with increases, at the date of your death.
Your qualifying spouse also has the option to receive a lump sum cash payment instead of a pension. The option must be exercised within 90 days, after which it lapses. The lump sum will be equal to your own contributions, with interest, less the amount needed to secure a widow(er)'s GMP.
Qualifying Children
Your qualifying children will be entitled to a third share (two-thirds if there is no qualifying spouse) of your deferred pension, with increases, at the date of your death.
Children cease to be eligible for a pension when they reach 18. At the Trustees' discretion, they may continue to receive one until they finish full-time education - which is normally first degree or equivalent.
Discretionary pensions
If there is no qualifying spouse or nominated dependant, the Trustees have discretion to award a pension to any person who was financially dependent on you at the date of your death.
Lump sum cash payment
If no pensions are payable, the Trustees will make a lump sum payment, which is currently free of inheritance tax. It will be equal to five times your deferred pension, with increases, at the date of your death.
The Trustees have discretion over who receives the cash and in what proportion. They will take into account your wishes regarding the choice of beneficiaries, but cannot be bound by them.
The above information refers to the Old Benefits section.
