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The Plan provides a range of benefits for your family, or your dependants, if you die. Those benefits depend on:
Here is an explanation of the benefits your family may be entitled to, depending on your circumstances, and at the discretion of the Trustee.
Please note that this website contains a summary and general information about your benefits payable from the Plan. It is not a formal Plan document. Full details of the Plan are set out in the Trust Deed and Rules of the Plan, as amended from time to time (the Trust Deed and Rules). The Trust Deed and Rules are legal documents setting out your rights and obligations under the Plan and in the event of any inconsistencies between this website and the provisions of the Trust Deed and Rules, the Trust Deed and Rules shall be overriding.
Your family may receive:
The normal pension age is 60. If you have left the Company and you die before your normal pension age, your spouse/partner may receive either:
In addition, up to two eligible, dependent children will receive immediate pensions of 1/6th of your deferred pension (which may be doubled if no spouse’s or partner’s pension is payable).
The death benefits in this instance would be calculated as though you had retired on the date of your death. The maximum tax-free cash sum is then payable, together with an immediate pension for your partner/spouse of 2/3rds of your pension.
There is also a Guarantee Period that will expire once five years' worth of pension payments have been made (or, if later, your 70th birthday). A lump sum may be payable - it would be equal to the sum of the pension payments during the Guarantee Period. However, if your pension would be of a higher value, it will continue (for the benefit of your dependants) at the same level for the Guarantee Period.
If the lump sum is not payable, your pension will continue (for the benefit of your dependants) at the same level for the Guarantee Period.
Benefits are also payable if you die after retiring – you can find out more here.
The benefits in the Plan are payable under a discretionary trust. This means that the Trustee makes the final decision on how to distribute any death benefits that may be payable from the Plan and allows these benefits to be paid outside your Estate and free from Inheritance Tax.
If you transfer out of the Plan, your family will not receive any further benefits from the Plan. However, the value of these benefits will be included in your transfer value. The way you choose to take your benefits once you have transferred will determine what is paid to your loved ones after your death, and how it is paid. So, for instance you could include a pension for your spouse if you buy an annuity or if you are taking drawdown the money in your investments will pass to your family, usually without tax.