Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

Death of a deferred member

If a you die whilst holding a deferred pension, the benefits payable can comprise one or more of the following depending on your service:

  • A Lump Sum Death Grant
  • Survivors pensions to a spouse, civil partner, cohabiting partner or eligible children (cohabiting partner benefits will only be paid if you have membership in the Scheme from 01/04/2008)

Pensions are payable monthly to eligible dependants whereas the Lump Sum Death Grant is a one off payment usually made to the beneficiaries nominated by you. The beneficiary of the death grant is at the discretion of the Pension Fund, who will be guided by nominations and as such it does not form part of your estate.

Survivors’ pensions would become effective from the day after you, as the former scheme member, died. The pension payable will depend upon the membership you have built up in the Scheme.

If you are currently contributing to the LGPS in another employment or Fund, any death grant due is limited to the greater of either the death in service grant or the death grant from your deferred pension (or multiple deferred pensions).

How to notify the Fund of a death

It is essential that the Fund is notified of a member’s death as quickly as possible so that the process of establishing whether benefits are due can be started without delay. If you are contacting the Fund about the death of a member it would be helpful if the following information is provided:

  • Full name and address of the deceased
  • The date of death and where the death was registered
  • Reference number such as National Insurance number or Payroll Reference Number
  • Full name and address of the Next of Kin and a contact telephone number

The Fund will then write to the Next of Kin to request to see the death certificate and any other relevant certificates, and declarations about marital status and any eligible children.

When entitlement has been established and the relevant benefits have been calculated, the recipient will be informed and the appropriate payments made.

Lump Sum Death Grant

For members leaving on or after 01/04/2008

The death grant payable would be your amount of deferred pension, times 5, plus any pensions increase accrued since the date of leaving.

For members leaving before 01/04/2008

The death grant payable would be the amount of lump sum retirement grant plus any pensions increase accrued since your date of leaving.

Survivor’s Pensions

For members leaving on or after 01/04/2008

Survivor’s pensions are available for cohabiting partners as well as spouse’s and civil partner’s.

All service counts towards survivor’s pensions except in the case of a nominated co-habiting partner’s pension, where only post 05/04/1988 service is included.

The rate of the survivor’s pension should have been calculated at the date your membership ceased as

Membership x Final Pay x 1/160 for 2008 scheme membership

Or

if pension had accrued at 1/160 for 2014 scheme service (and transfers in are counted at 49/160th of their value).

For members leaving before 01/04/2008

If you marry or enter into a civil partnership on or after after you have left the LGPS, the survivor’s pension is based on the following periods of membership:

  • Widows: membership from 06/04/1978 or date commencement of membership if later
  • Widowers/civil partners: membership from 06/04/1988 or the date of commencement if later

The rate of your spouse’s or civil partner’s long-term pension is 1/160th or half your deferred retirement pension (but for widowers’ and civil partners based on membership from 05/04/1988 UNLESS an election/resolution has been made to count pre 05/04/1988 membership for widowers’ benefits. If such an election has been made widower’s benefits are based on all the service accrued after the 01/04/1972. If the marriage date was on or after the 01/04/1998 all service, including pre 01/04/1972 service, should be included.)

Children’s Pensions

If you die leaving one or more eligible children, your children are entitled to a children’s pension as long as they remain within the definition of an eligible child.

The amount payable would be a fraction of your retirement pension as shown below:

where there is one eligible child

  • if a survivor’s pension is payable to a spouse or partner: membership x final pay x 1/320 or 2014 scheme benefits treated as having accrued at 1/320
  • otherwise : membership x final pay x 1/240 or 2014 scheme benefits treated as having accrued at 1/240

where there is more than one eligible child

  • if a survivor’s pension is payable to a spouse or partner: membership x final pay x 1/160 or 2014 scheme benefits treated as having accrued at 1/160
  • otherwise : membership x final pay x 1/120 or 2014 scheme benefits treated as having accrued at 1/120

Career Average transfers in are treated as having accrued as 49/accrual rate for the child’s pension.

If the you left before 01/04/2008 and your retirement pension was based on a period of membership of less than

  • ten years, or
  • the period you would have been entitled to count if your active membership continued until you 65th birthday, whichever is the shorter, then that period will be used when calculating a child’s benefit.