If you pass away when your pension payments have started, your beneficiaries may be entitled to receive payment in the form of a Lump Sum grant. The amount varies in accordance with a few factors: such as your retirement date and when did your pension payments start.
If you retired before 1 April 2009:
Your beneficiaries could be eligible in the situations where you pass away before a total of five full years of pension payments have been made.
If you retired on or after 1 April 2009:
A lump sum death grant may be provided if you die before you’ve received ten full years of pension payments.
If you pass away on or after the age of 75:
In line with pension scheme regulations and statutory retirement guidelines, in this specific scenario a lump sum grant will not be available.
Additionally, if you have other Local Government Pension Scheme (LGPS) (Scotland) pensions, the calculation for any lump sum death payment will consider all your LGPS benefits across different schemes. This way, your beneficiaries can receive a fair and comprehensive benefit that reflects all your contributions within the pension system.
It’s a great idea to take the time to review your pension documents and chat with a pension advisor to get a clear understanding of how these provisions apply to your unique situation.