When you die after retiring on pension, your benefits will no longer be payable. Your spouse, civil partner, cohabiting partner, next-of-kin or person dealing with your Estate must immediately inform the Pensions Section of your date of death as otherwise an overpayment could occur which may need to be recovered.
A death grant may be payable to your Estate or beneficiaries. The death grant only exists:
If you left the LGPS before 1st April 2008, a death grant is paid if you have been in receipt of the pension for less than 5 years and die under the age of 75
If you left the LGPS on or after 1st April 2008, a death grant is paid if you have been in receipt of the pension for less than 10 years and die under the age of 75
So if, for example, a pensioner retires before 1st April 2008 and receives 2 years pension before dying, the remaining 3 years of pension will be paid to the Estate or Beneficiaries as a one off death grant.
If a pensioner retires on or after 1st April 2008 and receives 7 years pension before dying, the remaining 3 years of pension will be paid to the Estate or Beneficiaries as a one off death grant.
However, if the pension has been paid for more than 5 or 10 years (whichever is relevant), or if you are over the age of 75 when you die, a death grant would not be payable.
It is important that you complete a Death Grant Expression of Wish Form (267KB opening in a new window) so that the Clwyd Pension Fund has a written record of your wishes. The Clwyd Pension Fund does have discretion as to who to pay the grant to. If you do not complete this form, the death grant will be paid to your Estate and may be liable for inheritance tax.
In addition to the death grant there are provisions for surviving partners’ pensions which would be paid to them for the rest of their lives. If you die before your partner, the Clwyd Pension Fund will pay a pension to any of the following:
If you die before your Civil Partner, a pension will automatically be paid to them. The amount of pension paid to them depends on when you left the Local Government Pension Scheme.
If you have a child / children that, at the date of death is/are:
You are eligible to nominate your cohabiting partner to receive a dependant’s pension but only if you left the LGPS after 1 April 2008.
The Clwyd Pension Fund automatically pays out widows/widowers pensions which may be based on all or part of your LGPS membership depending on when you left the Local Government Pension Scheme: