PART 6Survivor's benefits

CHAPTER 3Death grant

SECTION 3Death out of service

Death out of service grant140

1

A death grant F1may be paid under this regulation if a member (D) dies out of service (“death out of service grant”).

2

A death out of service grant is not payable if—

a

D dies following a period of pensionable service that is not post-benefit service and a retirement pension other than a phased retirement pension becomes payable before D's death; or

b

D dies following a period of post-benefit service and a retirement pension other than a phased retirement pension in respect of that period becomes payable before D's death

F22A

For the purposes of paragraph (2), an ill-health pension and, if applicable, a total incapacity pension are taken to become payable if—

a

before D’s death D made an ill-health application;

b

at the same time as D made the ill-health application, D made an application under regulation 171 for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

c

following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

3

The amount of the death out of service grant for D—

a

if a surviving adult pension becomes payable on D's death, is found by—

i

taking the amount of D's accrued earned pension as at the date of D's death;

ii

multiplying that amount by 2.25; and

iii

deducting the amounts specified in paragraph (4);

b

if a surviving adult pension does not become payable on D's death, but D was qualified for retirement benefits, is the greater of—

i

the amount calculated under paragraph (3)(a); or

ii

the total of the amounts specified in paragraph (6).

4

The amounts to be deducted under paragraph 3(a) are—

a

if D dies following a period of pensionable service that is not post-benefit service—

i

any part of a lump sum under regulation 168 not attributable to additional pension; and

ii

any short-service serious ill-health grant;

b

if D dies following a period of post-benefit service, any part of a lump sum under regulation 168 in relation to the post-benefit service which is not attributable to additional pension.

5

If at the date of D's death D was not qualified for retirement benefits or a short-service serious ill-health grant had not become payable, the amount of the death out of service grant is the total of the amounts specified in paragraph (6).

6

The amounts are—

a

all members' contributions, additional pension contributions, buy-out contributions and faster accrual contributions paid up to the date of D's death, excluding—

i

any contributions paid in respect of a pension benefit which has become payable before the application for repayment; and

ii

any contributions paid in respect of any period of pensionable service for which a short-service serious ill-health grant has been paid;

b

interest on those contributions from the first day of the financial year following that in which they were paid to the date of payment at 3% per year, compounded with yearly rests.