Childrens Pension

Payable to eligible children and increase every year in line with the cost of living (Consumer Prices Index), however, the pension benefits depend the eligibility of the child/children, the number of eligible children there are and whether there is a survivors pension being paid.

Who is an eligible child?

Natural or adopted child who was born before, on, or in the case of a natural child, within the following 12 months' of the member's death
Step child or a child accepted by the deceased member as a member of the family (excluding a child sponsored by the member through a registered charity) who was dependent on the member at the date of death.

The above eligible children must also meet the following conditions:

Under age 18, or
Aged 18 and 23 and in full-time education or vocational training
Unable to engage in gainful employment because of physical or mental impairment and either:
- has not reached the age of 23, or
- the impairment is, in the opinion of an independent registered medical practitioner, likely to be permanent and the child was dependent on you at the date of your death because of that mental or physical impairment.

In this context gainful employment means paid employment for not less than 30 hours in each week for a period of not less than 12 months.

Conditions

Education must be full-time and continuous, although the administering authority may treat education or training as continuous despite a break.
The administering authority may also suspend payment of any entitlements to a children's pension during any break in education of training (school holidays do not break the continuity of education).
The administering authority will generally decide what it regards as training for a trade or vocation, some might consider a paid apprentice to not qualify.

Payment

Upon death the Clwyd Pension Fund will wish to verify details concerning any child who may become entitled to a children's pension with reference to:

the child's birth or adoption certificate;
proof of continuous full-time education;
evidence of training for a trade, profession or vocation; and
proof of dependency (2008 scheme, or for a step-child)
evidence of permanent disability (IRMP opinion under 2014 regulations if over 23)

By asking for the above details, the Clwyd Pension Fund will then assess whether or not the child falls within the definition of an 'eligible child' under the regulations

Calculating the Children's Pension

No survivor's pension being paid

One child would receive:

Pre 31/03/2014: 1/240th x final pay x membership built up to 31/03/2014.
Post 01/04/2014: 1/240th x final pay x membership built following 01/04/2014.
Transfers in: 49/240ths of the amount of any pension credited following a transfer.
Enhancement: 1/240th of your assumed pensionable pay from date of death to NPA.

Two or more children would share the following:

Pre 31/03/2014: 1/120th x final pay x membership built up to 31/03/2014.
Post 01/04/2014: 1/120th x final pay x membership built following 01/04/2014.
Transfers in: 49/120ths of the amount of any pension credited following a transfer.
Enhancement: 1/120th of your assumed pensionable pay from date of death to NPA.

Survivor's pension being paid

One child would receive:

Pre 31/03/2014: 1/320th x final pay x membership built up to 31/03/2014.
Post 01/04/2014: 1/320th x final pay x membership built following 01/04/2014.
Transfers in: 49/320ths of the amount of any pension credited following a transfer.
Enhancement: 1/320th of your assumed pensionable pay from date of death to NPA.

Two or more children would share the following:

Pre 31/03/2014: 1/160th x final pay x membership built up to 31/03/2014.
Post 01/04/2014: 1/160th x final pay x membership built following 01/04/2014.
Transfers in: 49/160ths of the amount of any pension credited following a transfer.
Enhancement: 1/160th of your assumed pensionable pay from date of death to NPA.

Retire before 1st April 1998

Short Term pension

Short term pensions were removed from the regulations on 1st April 2008, but those members who retire before then still have this entitlement in respect of their survivors.

If there is no surviving spouse, there will be a short-term pension payable to any eligible children for 6 months.

If there is a surviving spouse and the children are in their care, then a child's short-term pension is payable for 3 months, but is reduced by the amount of spouse's short term pension payable; i.e. there is effectively no entitlement to a children's short-term pension.

If there is a surviving spouse but the children are not in their care, then a child's short-term pension is payable for 3 months following death.

If the deceased was a pensioner member, then the short-term pension is equal to his retirement pension immediately before the death.

A pensioner member includes a person whose retirement pension has been commuted under the former provision for exceptional ill health and benefits are calculated by reference to the amount of pension which would have been due but for the reduction on commutation.

If the member retires after 1 April 2008, there is no short-term pension.

Long Term pension

If a member dies leaving one or more eligible children, they are entitled to a child's long-term pension.

Where the deceased was a pensioner member, the long-term pension will become payable when the short-term pension ends, and is payable for as long as the children remain within the definition of eligible child.

If a member's retirement pension has been based on a period of membership of less than ten years, or the period he would have been entitled to count if his active membership continued until his 65th birthday, whichever is the shorter, then that period should be used when calculating a long term child's benefit.

Unlike widowers'/civil partner's benefits, a child's pension is based on all service and not just service after 6.4.88.

No longer an eligible child?

If the pension has been split between more than one eligible child, when one of the children no longer meet the criteria of an eligible child, the total pension is split in equal shares amongst the remaining eligible children.

For example if the total pension was £1,200 split amongst 4 children in equal shares of £300 (£1,200 / 4) and the eldest child leaves full-time education, the remaining 3 children would receive equal shares of £400 (£1,200 / 3) each, when two remained the shares would be £600 (£1,200 / 2) each until one eligible child remained when the payment would remain £600.