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Nilgosc


Pensioners Death Benefits

Details the protection available to family members of pensioners who retired after April 2009.

If you die after retiring on pension, your husband, wife, civil partner, cohabiting partner, next-of-kin or person dealing with your estate must immediately inform NILGOSC of your date of death. 

The type and amount of benefit payable depends on the date you left the Scheme, how long you have been on pension and whether your dependants qualify for a pension.

A lump sum death grant may be payable along with a:

Lump Sum Death Grant

No death grant is payable once you are over age 75.
The death grant payable for pensioners is a reducing amount as it takes account of pension that has already been paid. The information boxes below explain how the death grant is calculated depending on when you left the Scheme and claimed your benefits.  If you die while receiving an LGPS (NI) pension but you are also an active member of the Scheme, only the highest death grant will be payable, not the sum of all the death grants. 

Left the Scheme after 31 March 2015

For Membership from 1 April 2015

  • The death grant is ten times your annual pension (before any pension you may have given up for a tax-free cash lump sum), minus any pension already paid to you for your post 31 March 2015 membership and the amount of any tax-free cash lump sum that you chose to take by giving up some of the pension built up after 31 March 2015.

For Membership before 1 April 2015

  • The death grant is ten times your annual pension for your membership before 1 April 2015 (after any pension you may have given up for a tax-free cash lump sum), minus any pension already paid to you for your pre-1 April membership.

If you are drawing a pension which started before 1 April 2015 and you are also an active member of the Scheme.

In this event a lump sum death grant is payable which is the higher of:

  • 3 x assumed pensionable pay OR
  • 10 x level of annual pension (after giving up pension for tax-free cash) less any pension already paid.

Left the Scheme between 1 April 2009 and 31 March 2015

In most cases a death grant is payable of ten times the pension in payment less the total amount of pension already paid.  This is known as a ten year guarantee.


Left the Scheme before 1 April 2009

In most cases a death grant is payable if you have been on pension less than five years.  The death grant is the sum of five years basic pension reduced by the total basic pension already paid.  This is known as a five year guarantee.  Slightly different calculations apply if you left the Scheme before 1 August 2000.


 

Payment of Death Grant

NILGOSC has absolute discretion to pay the death grant to your nominee(s), personal representatives or any person who appears at any time to have been a relative or dependant. When exercising its discretion NILGOSC will take into account any ‘Expression of Wish’ you have made but NILGOSC is not legally bound to pay the death grant to your nominee. The advantage of this absolute discretion is that this payment does not form part of your estate and is therefore not liable to inheritance tax.


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