Death Grant payable if you left the LGPS before 1 April 2008 and die on pension
A lump sum death grant is payable if you left the LGPS before 1 April 2008 and die with less than 5 years pension paid.
The amount of death grant payable would be:
- 5 times the level of your annual pension less the total amount of annual pension already paid before your death.
Merseyside Pension Fund has absolute discretion when deciding who to pay any death grant to.
The LGPS, however, allows you to express your wish as to who you would like any death grant to be paid to by completing and returning the Death Grant Expression of Wish form. You can complete an expression of wish form or make a new one at any time.
If any part of the death grant has not been paid within two years, it must be paid to your personal representatives i.e. to your Estate.
Your personal representatives will need to inform HM Revenue and Customs if, together with the lump sum death grant, the value of all your pension benefits - but not including any spouse’s, civil partner’s, eligible cohabiting partner's or dependant’s pension you may be entitled to – exceeds the Lifetime Allowance.
Under HM Revenue and Customs rules, any excess will be subject to a recovery tax charge.
Most scheme members’ pension savings will be significantly less than the allowance.
You can find more information on this from the section Tax controls and your LGPS benefits.