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Lump sum death grant for councillors

If you die as an active member of the Scheme, a lump sum death grant is payable of:

  • three times your pensionable pay  

If you die as a deferred member of the Scheme, a lump sum death grant is payable of:

  • five times your deferred pension

If you die as an active member and also have deferred benefits only the higher death grant is payable.  

If you die after retiring on pension, the lump sum death grant is a reducing amount as it takes account of pension that has already been paid.  The death grant is ten times your pension including any pension you may have given up for lump sum, minus any pension already paid to you and the amount of tax-free cash you chose to take when you drew your pension at retirement. No death grant is payable once you have been in receipt of pension for ten years or more.

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. A death grant that is paid after age 75 will be liable to a special lump sum death benefits charge of 45% and this tax will be deducted and paid to HMRC by NILGOSC.

Expression of Wish Form LGS20

You can complete and return the Expression of Wish form (557KB, PDF) to NILGOSC to advise us whom you would like to receive any death grant.  A new form must be completed if your marital or partnership circumstances change.  All members are strongly advised to complete a death grant expression of wish form.  You do not need to complete this form if you have been on pension more than ten years. 

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