Death in retirement

When you die your Plan pension ceases.  A full month's instalment of pension is due for the month in which death occurs, and the following benefits may then apply (remember the payment made of the 6th of the month is payment in full for that month).

  • A Spouse's pension may be payable which will usually be equal to 50% of your full pension at retirement (i.e. before any pension you exchanged for a tax-free cash lump sum) plus 50% of any post retirement increases that you have received.
  • If death occurs within 5 years of retirement an amount equal to the balance of 5 years' outstanding pension instalments will become payable as a lump sum.

There may be circumstances where we are not advised of a death until after we have paid an instalment of pension that is no longer valid.  This would therefore be an overpayment of pension and we will be required to seek the return of the overpayment from your estate.

Because we pay some pensions on the 28th of the month in advance for the month following, this situation could arise even when we have been advised promptly of a death.