Death Grant

A death grant is defined as a lump sum that is payable to the deceased member’s nominee(s), or any person appearing to the Administering Authority to have been a nominee or personal representative(s), or any person appearing to the authority to have been his relative or dependant at the time.

We advise all members of the scheme to complete a ‘Death Grant Expression of Wish Form’ to nominate whom and how they wish their death grant to be paid upon their death. Although this expression is taken into consideration following a member’s death, the decision as to whom the death grant should be paid to is entirely at the discretion of the Administering Authority, to accommodate for any changes for any out dated nominations.

The whole of the death grant can be paid to one person, or the payment can be split as the Administering Authority deems fit. The death grant is not necessarily paid to the estate of the deceased person, and in this way inheritance tax can be avoided.

If you pay Additional Voluntary Contributions (AVCs) arranged through the LGPS, the value of your AVC fund is also payable, as is any extra life cover.

Example

If you left employment and have not drawn your pension benefits the Death Grant will depend on when you left:

If you left after 1 April 2008

5 x Deferred Annual Pension x Pensions Increase = Deferred Death Grant

Member with Deferred Pension of £5,000 would have a Death Grant of £25,000 (£5,000 x 5) x pensions increase multiplier.

If you left before 31 March 2008

Members Deferred Lump Sum x pensions increase = Deferred Death Grant

Member with Deferred Lump Sum of £20,000 would have a Death Grant of £20,000 x pensions increase

I have other LGPS benefits

If you are an active member of the LGPS after 01/04/2014 and die, the Clwyd Pension Fund shall check if any other LGPS fund across England and Wales are paying you a Death Grant for a previous Deferred or Pensioner record. If the total Death Grant calculated with your previous Deferred or Pensioner records is larger than the Active Death Grant payable by Clwyd Pension Fund, then Clwyd Pension Fund must pay the larger amount, but the Death Grants from your Deferred or Pensioner records would not be payable.