If you die in service, the Local Government Pension Scheme (LGPS) ensures that your Survivor's are supported. From the moment you join the scheme, you gain added life assurance, as well as Survivor benefits (if applicable).
If you were to die as an active member of the LGPS, a lump sum death grant of 3 times your annual pensionable pay is payable in accordance to your expression of wish, or to your Estate / Personal Representatives if you have not made a nomination.
The completion of a Death Grant Expression of Wish form will allow you to nominate one or more individuals or an organisation(s) to receive payment of the death grant.
If you also have a separate deferred benefit from an earlier period of LGPS membership, the death grant payable will be the greater of either the death grant in respect of your active period of membership, or the death grant in respect of your deferred benefit, whichever is greatest.
The Dyfed Pension Fund retains absolute discretion as to whom it pays your death grant to. In the event of a dispute, the payment will be made to your Estate or Personal Representatives.
Be mindful that you will need to keep your death grant expression of wish up to date, at all times. If there is any change to your previous nomination, you will be required to update your expression of wish by completing a new Death Grant Expression of Wish form or updating online.
The Local Government Pension Scheme (LGPS) provides cover for your family in the event of your death, with pensions for your survivor's; either your Spouse, Registered Civil Partner or, subject to certain qualifying conditions, your eligible Co-habiting partner and even eligible Children.
The survivor's pension payable to your spouse, registered civil partner or, subject to certain qualifying conditions, your eligible co-habiting partner is then payable for their lifetime.
For membership built up from 1 April 2014 to your date of death, the pension payable to your spouse, registered civil partner or eligible co-habiting partner is equal to 1/160th of your pensionable pay times your membership in the scheme after 31 March 2014; plus 49/160ths of the amount of any pension credited to your pension account following a transfer of pension rights (if applicable); plus a pension equal to 1/160th of your assumed pensionable pay for each year of membership you would have built up from your date of death to your Normal Pension Age (NPA).
For membership built up before 1 April 2014, the pension payable is equal to 1/160th of your final pay times your membership in the scheme up to 31 March 2014 (unless you marry after your retirement, in which case it could be less).
For your eligible Co-habiting Partner, the amount payable as a survivor's pension may be less if you have elected not to pay additional contributions in respect of your membership before 6 April 1988.
For a survivor's pension to be paid to your eligible Co-habiting Partner, all of the following conditions must have applied for a continuous period of at least 2 years before your death:
- you are both free to marry or enter into a civil partnership with each other;
- you have been living together as if you were husband and wife, or civil partners;
- neither you have been living with someone else as if you / they were husband and wife or civil partner;
- you are financially dependent or interdependent on each other.
If an active member of the Local Government Pension Scheme (LGPS) dies leaving one or more Eligible Child, they are entitled to a children's pension, which shall come into payment on the day following the member's death.
Children's pensions are payable to the surviving parent or legal guardian until they reach at least 18 years of age. Children who are eligible can be legitimate, illegitimate or adopted, or any child accepted as a member of the family and dependent on the member whilst he/she was a contributor to the Scheme.
Special consideration is given to children in the care of both a surviving parent or a guardian where the child is physically or mentally disabled, and has been since before age 18. In this instance, pensions are payable for as long as the disability continues.
Pensions can also be paid to children over the age of 18, providing that they remain in full time continuous education, or undertaking an approved training course for at least 2 years.
Please note that children's pensions are payable until a maximum age of 23.
To find out more, please contact us.