Beneficiary Payments
Death prior to retirement age
In the event of death prior to your retirement age, the contributions you have made plus interest earned will become payable to your beneficiaries.
Death during retirement years
Your beneficiaries, dependents or estate will receive a tax-free cash sum based on your selected payment option.
Your beneficiaries will receive the balance of payment if you had selected the option of receiving payment over a guaranteed period OR they will receive payments for the duration of their lifetime (subjected to limits imposed by legislation).
In the event that you did not select a payment option, the Trustees may use any remaining balance to provide a pension for your dependents.
Who will receive death benefits?
The payment of death benefits is at the Trustees’ absolute discretion. This ensures that payments do not form part of your estate and are therefore not liable to inheritance tax.
Any pension payments to a dependant will form part of their taxable income. The Trustees will consider paying death benefits to your spouse or partner (including a civil partner), to your dependent children or anyone else who they consider to be a dependent of yours.
It is important therefore that you complete a Beneficiary Form to indicate to the Trustees who you would wish to receive payments in the event of your death.
If you have no dependants then you may consider nominating any other person or organisation (eg. a charity) as a beneficiary.
Please ensure that your Nomination is kept up to date with any changes to your personal circumstances.
The Trustees can be guided by your wishes when deciding how to allocate death benefits, but they are not bound by them.
