The death benefits payable once you cease membership with the Scheme will depend on which section you have deferred benefits in and also whether you’re still employed with the Company.
Full information about the death benefits payable can be found within the Member Guides.
If you die before your Normal Retirement Age and before your pension has come into payment, a Dependant’s Pension and Child Allowances may be payable.
The dependant’s pension is half of your deferred pension, including the annual increases paid since the deferral of your KPS-FS benefits. If you were married or had entered into a Civil Partnership when you die your spouse or civil partner will receive the dependant’s pension, provided you were living together. If you had been married for less than one year and your spouse is more than 20 years younger than you, the Trustee may reduce the dependant’s pension.
If you were not living with your spouse or if you are not married or in a civil partnership, the dependant’s pension may at the Trustee’s discretion be paid to another person if they were financially dependent upon on you. The Trustee will carefully consider the circumstances of your dependant at the time of your death to decide if they qualify for the dependant’s pension.
Under the Scheme Rules a dependant is defined as a member’s widow, widower, civil partner or child or someone who is financially dependent on the member or financially interdependent with the member, at the date of the member’s death.
If you leave one child, they will receive 25% of your deferred pension, including the annual increases paid since the deferral of your KPS-FS benefits. If you leave more than one child, the total paid to them will be half your deferred pension, including the annual increases paid since you left the KPS-FS. The Trustee will split the total allowance between your children.
Allowances are paid until the child reaches age 18, but the Trustee may continue the allowance until the child reaches age 23 provided that he/she remains in full-time education. A child for this purpose includes a legitimate or adopted child and a stepchild. It does not normally include an illegitimate child unless you have notified the Trustee in writing of his or her existence.
If you did not leave a dependant or child, there is a lump sum payable equal to your own contributions plus interest.
If you had to cease membership of the KPS-FS due to it’s closure and you are still employed by the Company then this benefit is paid in addition to a dependant’s pension and/or child allowance.
Any AVCs paid whilst an active member, will be paid as a lump sum upon your death.
Please note if you die after your Normal Retirement Age and before your pension has come into payment, the benefits due will be calculated as if you retired from the KPS-FS on your date of death.
In the event of your death before retirement, your beneficiaries will receive a KPS-MP death benefit lump sum.
The KPS-MP death benefit lump sum is made up of the value of your Retirement Account paid as a lump sum to your beneficiaries. Your beneficiaries may, if they wish, convert the lump sum into an income.
If you are still employed by the Company, this death in service cover is still payable to non-members however this benefit is not at the same higher rate. The amount payable is dependent on when they joined the Company.
It is important to fill in a Beneficiary form and keep it up to date so that the Trustee knows who you would like benefits paid to. The Trustee will take into account those you put on the form, but is not obliged to follow your wishes.
