CHAPTER 3Death grant
Meaning of death grant beneficiary
154.—(1) A person (P) is a “death grant beneficiary” of a pension credit member if—
(a)the member has nominated P to receive a death grant or a share of a death grant on the member’s death; and
(b)at the date of the member’s death, the nomination has effect.
(2) A member may nominate P by giving written notice to the scheme manager.
(3) The nomination ceases to have effect if—
(a)the member revokes the nomination by giving written notice to the scheme manager;
(b)the member subsequently nominates a different person in place of P; or
(c)P dies.
(4) If a member nominates more than one death grant beneficiary, the notice must state—
(a)the share of the death grant to be paid to each beneficiary; and
(b)whether, if a beneficiary dies before the member, the beneficiary’s share must be paid—
(i)to the surviving beneficiaries in accordance with paragraph (5); or
(ii)to the member’s executors as part of the member’s estate.
(5) If a beneficiary’s share is to be paid to the surviving beneficiaries, it is to be paid to them in shares such that the proportion which each surviving beneficiary’s share bears to each of the other surviving beneficiaries’ shares is the same as it was in the nomination.
(6) A death grant beneficiary must be an individual.
Death grant: death of pension credit member before pension becomes payable
155.—(1) A death grant is payable under this regulation on the death of a pension credit member (D) who dies before a pension credit retirement pension becomes payable to D under regulation 152.
(2) The amount of the death grant is found by—
(a)taking the amount of credited pension which would have become payable to D at the date of D’s death if D had reached normal pension age; and
(b)multiplying that amount by 2.25.
Death grant: death of pension credit member after benefits payable
156.—(1) A death grant is payable under this regulation on the death of a pension credit member (D) if—
(a)a pension credit retirement pension became payable before D’s death; and
(b)AR is greater than AP.
(2) The amount of the death grant is AR-AP.
(3) In this regulation—
“AR” is 5 times the annual rate of the pension credit retirement pension payable as at the date of D’s death;
“AP” is the total amount of that pension payable up until D’s death.
Payment of death grant
157. On the death of a pension credit member, the death grant must be paid—
(a)to the death grant beneficiary;
(b)if there is more than one death grant beneficiary, to those beneficiaries in the shares determined in accordance with regulation 154(4) and (5); or
(c)if there is no death grant beneficiary, to—
(i)the member’s surviving spouse or surviving civil partner; or
(ii)if there is no such person, to the member’s executors as part of the member’s estate.