Death Benefits

Spouse’s pension

If you die in retirement and leave a spouse, he or she will receive a pension for life equal to 66.67 per cent of your gross pension. This ignores any reduction resulting from a cash payment taken at retirement and/or as a result of early retirement. If your spouse is more than 10 years younger than you, his or her pension will be reduced, but not by more than 50 per cent.

The trustee has discretion to pay all or part of the pension to another dependant if you and your spouse lived apart (see dependant’s pension).

Spouses’ pensions increase on the same basis as retirement pensions.

If you die in retirement and leave a spouse, he or she will receive a pension for life equal to 66.67 per cent of your gross pension – provided that the full rate of contributions has been paid for the entire period of membership. This ignores any reduction resulting from a cash payment taken at retirement and/or as a result of early retirement.

In all cases the spouses’ pension shall become payable 3 months after the date of your death.

Short-term spouses pension

25 per cent of the member’s pension is payable at the date of death, less any lump sum held on discretionary trust (five-year guarantee). The reduction for discretionary trust applies only in cases in which the date of death falls within the three months before the fifth anniversary of the member’s  retirement. If the date of death falls after the fifth anniversary of your date of retirement then 25% of your pension will be paid as a lump sum without any reduction.

If you die in retirement and leave a spouse, he or she will receive a pension for life equal to 50 per cent of your gross pension. This ignores any reduction resulting from a cash payment taken at retirement and/or as a result of early retirement. If your spouse is more than 15 years younger than you, his or her pension will be reduced.

Children’s pensions

If your pension started before 6 April 2006, dependent children will receive pensions until the age of 18 (or 25 if in full-time education). If your pension started on or after 6 April 2006, the upper age restriction is 23. Two or more eligible children will share 33.33 per cent of your gross pension. As each child becomes ineligible due to age, the amount will be redistributed to the remaining eligible children. If there’s only one eligible child, he or she will receive 16.66 per cent of your gross pension.

Where no spouse’s or other dependant’s pension is payable, children’s pensions will be three times the above amounts. Children’s pensions increase on the same basis as retirement pensions.

There is no provision for a child’s pension to be paid if you are a member of the former TR section.

Dependant’s pension

If a Spouse’s pension isn’t payable, the trustee has discretion to pay a pension to another dependant, such as an aged parent, in place of the spouse’s pension.

The trustee may take into account your wishes when exercising its discretion as to who should benefit from the Fund on your death. You should notify us in writing of any person you wish to be considered as a beneficiary. Please contact us if you’re not sure whether a nominee is eligible. Your enquiry will be dealt with confidentially.

Dependants’ pensions increase on the same basis as retirement pensions.