<:: previous page next page ::>

SECTION 5: BENEFITS IN THE EVENT OF ILL-HEALTH RETIREMENT: DEATH: RESIGNATION
  

Death benefits

(see also Section 6, Rule 5.12 and Rules 7.12 to 7.18 of Appendix 7)
  
Lump sum payable on death in service
  
5.06 (i) Where a member dies in service, the Authority (in addition to paying any family benefits due under Section 6 and without prejudice to the payment of any benefit payable under Appendix 7) may pay to the person or persons nominated by him to receive it, or (in the absence of a valid nomination) to his legal personal representatives, a death benefit lump sum. Nomination of more than one person is permitted only in respect of specified shares in the death benefit.
  
  (ii)

A nomination in respect of a death benefit shall not be valid at the time of the nominator's death;

(a) if the person nominated was the nominator's husband, wife or civil partner at the time the nomination was made but the marriage or civil partnership has been dissolved or annulled; or

(b) if the Authority is of the opinion that payment of the death benefit to the person nominated is not reasonably practicable in all the circumstances, or is prevented by the operation of the common law rule of forfeiture; or

(c)  if the person nominated has died;

(d)  if the nomination is one of joint nominees;

(e)  if the nomination was not by notice in writing in such form as the Authority may from time to time require.
  
 

When a member has made nominations in favour of more than one person the invalidity of one or more nominations by reason of the circumstances in (a) (b) or (c) above shall not affect the validity of nominations to which those circumstances do not apply and for the avoidance of doubt the share of the person or persons nominated by valid nominations shall remain unchanged. When a nomination in respect of a specified share in the death benefit is invalid under this Rule, that share will be payable to the member's personal representatives.
  

  (iii)

A lump sum payable under this Rule, or under Rule 5.07 or 5.12, will be paid at the discretion of the Authority, and nothing in the Scheme will extend or be construed to extend to give any person an absolute right to it. A nomination may be revoked by subsequent notice in writing to the Authority.
  

  (iv)

Subject to (vi) where a member dies before 1 st February 1988 the death benefit will be the greatest of:
  

    (a) the member's pensionable final earnings (as defined in Rule 4.05), less any sum or sums due from the member under Rules 6.10, 6.12 (in the case of a former non industrial scheme member) and 6.57 or otherwise in accordance with the Rules; or
  
    (b) the lump sum that would have been paid if he had been retired on medical grounds at the date of his death; or
  
    (c) a sum equal to a return of basic contributions made in accordance with Rules 5.15 and 5.16.
  
  (v)

Subject to (vi) where a member dies on or after 1 st February 1988 the death benefit will be the greater of either:
  

 

(a) two years' pensionable final earnings (as defined in Rule 4.05); or
  

 

(b) the lump sum that would have been paid under Rule 5.01 if he had been retired on medical grounds on the date of his death;
  

   

less any sum or sums due from the member under Rules 6.10, 6.12, (in the case of a former non industrial scheme member) 6.44(A), 6.57 or otherwise in accordance with the Rules.

   

Where a refund of contributions for family benefits is due in accordance with Rule 5.18, this will be paid in addition to the lump sum.

  (vi)

Where there is part-time service in the last 3 years of reckonable service, pensionable final earnings will be calculated (notwithstanding Rule 4.07(ii)) by reference to the actual pensionable earnings in whichever of the last three years of reckonable service gives the highest figure, rather than by reference to the full-time pensionable earnings. For the purposes of this Rule, the last three years of reckonable service includes any part-time service which does not qualify (or reckon) under Rule 3.02.

   

In any case whereby an order made under:

 

(i) section 23 of the Matrimonial Causes Act 1973 by virtue of section 25C of that Act; or
  

 

(ii) section 8(2) of the Family Law ( Scotland ) Act 1985 by virtue of section 12A(3) of that Act; or
  

 

(iii) article 25 of the Matrimonial Causes ( Northern Ireland ) Order 1978 by virtue of article 27C of that order,
  

   

a court has required the Authority to pay part of any lump sum payable in respect of a member's death to his former spouse or civil partner, any balance of death benefit payable under rule 5.06 or rule 5.07 may be paid to the person nominated by the member for a death benefit under rule 5.06 in the same shares as specified in the nomination where there is more than one nominee, or (in the absence of a valid nomination) to his legal personal representatives.

Supplementary lump sum
  
5.07 (1)

Where a member retires with a pension under rule 4.03 or 5.01 in respect of service ending before 1 February 1988 and subsequently dies after the pension has come into payment, the Authority (without prejudice to the payment of any benefit payable under Section 6 or Appendix 7) may pay to the person or persons nominated by him under Rule 5.06 or (in the absence of a valid nomination) to his legal personal representatives a lump sum equal to the amount (if any) by which the aggregate of the lump sum payment under rule 4.03 or 5.01 and any sums paid by way of pension (including any benefits under Rule 4.40) already paid or due to the member fall short of the lump sum that would have been payable under Rule 5.06 if he had died on his last day of service. For the purpose of this Rule, any deductions which have been made under Section 6, or otherwise in accordance with the Rules, from the lump sum already paid or due will not be so deducted.
  

  (2) Where a member retires on or after 1 February 1988 and dies after a pension under Rule 4.03, 5.01, 8.06 or 8.16 or a continuing annual payment under Rule 8.06 or 8.16 under Appendix 8 has come into payment, the following sums will be calculated:
  
    (i) Five times the annual rate of pension or continuing annual payment in payment to him at the date of death (including any increase under Rule 4.40) but excluding any additional pension resulting from an election under rule 4.03 (1) (a)
  
    (ii) The total of lump sums and pension or continuing annual payment already paid to him.
  
   

If the sum in (ii) is less than the sum in (i), a supplementary death benefit equal to the difference between these two amounts may be paid to the person or persons nominated by him for a death benefit under Rule 5.06, in the same shares as specified in the nomination where there is more than one nominee, or (in the absence of a valid nomination) his legal personal representatives.

 

  (3) Where a member who had been awarded a preserved pension and preserved lump sum under rule 5.09 in respect of service ending after 5 April 1975 and before 1 January 2000 dies after they have come into payment, a supplementary lump sum may be paid under paragraph (1); except that for the purpose of this paragraph the death benefit that would have been payable under Rule 5.06 if he had died on his last day of service ( shall be reduced in the proportion which his actual reckonable service bears to what would have been his reckonable service if he had stayed in service in a full-time capacity until retiring age).
  
  (4) Where a member who had been awarded a preserved pension and preserved lump sum under Rule 5.09 in respect of service ending on or after 1 January 2000 dies after they have come into payment the following sums will be calculated:
  
    (i) Five times the annual rate of pension or continuing annual payment in payment to him at the date of death (including any increase under Rule 4.40) but excluding any additional pension resulting from an election under rule 4.03(1) (a).
  
    (ii)

The total of lump sums and pension or continuing annual payment already paid to him.

    If the sum in (ii) is less than the sum in (i), a supplementary death benefit equal to the difference between these two amounts may be paid to the person or persons nominated by him for a death benefit under Rule 5.06, in the same shares as specified in the nomination where there is more than one nominee, or (in the absence of a valid nomination) his legal personal representatives.

  (5) In any case whereby an order made under:
    (i)

section 23 of the Matrimonial Causes Act 1973 by virtue of section 25C of that Act; or
  

    (ii)

section 8(2) of the Family Law ( Scotland ) Act 1985 by virtue of section 12A(3) of that Act; or

    (iii)

article 25 of the Matrimonial Causes ( Northern Ireland ) Order 1978 by virtue of article 27C of that order,

   

a court has required the Authority to pay part of any lump sum payable in respect of a member's death to his former spouse or civil partner, any balance of death benefit payable under rule 5.06 or rule 5.07 may be paid to the person nominated by the member for a death benefit under rule 5.06 in the same shares as specified in the nomination where there is more than one nominee, or (in the absence of a valid nomination) to his legal personal representatives.



<:: previous page next page ::>