If you die before Normal Retirement Age while in Pensionable Service, a lump sum equal to four times your Pensionable Earnings plus the value of your Pension Account will be payable. Part of the lump sum may be used to secure a pension for your spouse, civil partner and/or dependant(s). In respect of members who joined on or after 1 September 2012, payment of the earnings-related lump sum is subject to provision of satisfactory medical evidence of death.
If the total death benefits exceed your lump sum and death benefit allowance, the excess would be subject to income tax.
It will be the responsibility of your personal representative to advise any other pension providers of the lump sum and death benefit allowance used in respect of the ABF Pension Scheme benefits when assessing the scope to pay any deferred benefits from their schemes following your death.
The benefits payable on your death in retirement will depend on the choices you made when you retired as to how you wanted to use your Pension Account. If you purchased an annuity that made provision for a spouse’s, civil partner's or dependant's pension on your death, this will now become payable. Any benefits would be payable by the insurance company from which you purchased your pension; no benefits would be payable from the ABF Pension Scheme.
If you took your benefits as a one-off lump sum, or transferred them to another arrangement to take flexible benefits, there would be no further benefits payable from the Scheme.
If you die after leaving the Scheme but before starting to receive a pension from your Pension Account, your Pension Account will be used to pay a lump sum. If you die before age 75 and the total lump sum exceeds your available lump sum and death benefit allowance then any excess over the allowance may be used to secure a pension for your spouse, civil partner and/or dependant(s). If there is no spouse, civil partner or dependants, the excess would be subject to income tax at the beneficiary’s marginal rate.