What happens if I die while I’m still employed and paying contributions to the Scheme?
A lump sum of three times your Contributory Salary plus the value of any AVCs you have contributed will be paid.
For example, if you have a Contributory Salary of £23,500 plus an AVC fund valued at £7,000, your total lump sum death benefit would be worked out as follows:
| Contributory Salary x 3 | + | Return of value of AVCs (if applicable) |
= | Total lump sum benefit |
|---|---|---|---|---|
| £23,500 x 3 | £7,000 | £77,500 |
In addition, the Scheme will also pay pension benefits as explained below:
A pension will be paid to your spouse or civil partner of 50% of the pension which you would have earned had you remained in the Scheme until your 65th birthday, with no change in your Contributory Salary.
In addition, the Scheme will pay a child’s pension for financially dependent children up to the age of 18 (or 23 if they are in full-time education). The pension will be 50% of the spouse’s pension described above, per child up to a maximum of two children. If you have two or more children, the total children's pension payable will be shared between the children.
If you are not married or in a civil partnership, but are living with a partner who is financially dependent or interdependent on you at the time of your death, then a pension may be paid at the discretion of the Trustee.
If the lump sum payable on death in service exceeds the lump sum and death benefit allowance, the excess will be subject to income tax.