Death Grant Lump Sum
Reporting the Death of a Member
To report the death of a scheme member please contact the Clwyd Pension Fund directly on 01352 702753
Alternatively you can contact us in writing at the address below.
Should you prefer you can even contact us by email email@example.com
When contacting us we will require the following information:
Name of member, Date of death, National Insurance number, Next of kins name, address and contact number.
What is a 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.
Death as a Pensioner
If you die after you have retired, payment of your pension benefits will stop. Dependant upon your circumstances there may be a survivors pension payable along with a Death Grant Lump Sum.
The basic principle is that the death grant is based on a guaranteed number of years less pension already paid.
The exact method of calculation depends on what period of membership the former member had accrued in the Local Government Pension Scheme, whether the benefits were reduced or unreduced and whether or not it was previously a deferred pension or included any enhancements and in the 2014 scheme, and whether the member had commuted pension to retirement grant.
If you left the LGPS on or after 1 April 2008
A lump sum death grant will be paid if you die and less than 10 years pension has been paid and you are under age 75 at the date of death. The amount payable would be:
- 10 times the level of your annual pension in respect of your membership of the scheme after 31 March 2014 (before giving up any pension for a tax free cash lump sum), less any pension already paid to you in respect of your post 31 March 2014 membership and the amount of any tax-free cash lump sum you chose to take by giving up some of the pension you built up after 31 March 2014 when you drew your pension at retirement, plus
- 10 times the level of your annual pension in respect of your membership of the scheme before 1 April 2014 (after giving up any pension for a tax free cash lump sum), less any pension already paid to you in respect of your pre 1 April 2014 membership.
If you left the LGPS before 1 April 2008
A lump sum death grant will be paid if you die and less than 5 years pension has been paid and you are under age 75 at the age of death. The amount payable would be:
- 5 times the level of your annual pension in respect of your membership in the scheme (after giving up any pension for a tax free cash lump), less any pension already paid to you.
If you left the LGPS before 1 April 1998
The calculation of the death grant depends on whether you have more than, or less than, 10 years service that counts towards the calculation of your pension benefits. The calculation is complex and you can ask your pension fund administrator for an estimate of the amount that may be payable, if applicable.
Death as a Dependant Member
Following the death of a member, a dependant members annual pension may be payable to a surviving partner or child. If the dependant member subsequently dies, then no Death Grant Lump Sum is payable.
Death as a Pension Credit Member
If a pension credit member dies after retirement a death grant is payable based on 5 x the pension less that paid.
If any pension had been commuted the death grant is 5 x pension pre commutation less pension paid and retirement grant derived from the commutation (this only being possible for 2014 scheme pension credit members)
No survivor's pensions are payable for survivors of pension credit members.