What lump sum benefits will be paid if I die in service?
If you die in service as a member of the LGPS a lump sum death grant of three times your assumed pensionable pay at your date of death is paid, no matter how long you have been a member of the LGPS, provided you are under age 75 at the date of death.
If you have a deferred benefit and/or a pension in payment from a previous period of membership of the Scheme, the lump sum death grant will be any lump sum death grant payable in respect of those benefits or the death in service lump sum death grant of three times your assumed pensionable pay, whichever is the greater.
Where an independent registered medical practitioner certifies that, during the period used to determine assumed pensionable pay, you were working reduced contractual hours because of the ill health which led to death in service, the assumed pensionable pay is calculated on the pay you would have received during that period had you not been working reduced contractual hours.
If you pay Additional Voluntary Contributions (AVCs) arranged through the LGPS (in-house AVCs), the value of your AVC fund is also payable, as is any extra life cover.
Who will the lump sum death grant be paid to?
The Fund has absolute discretion over who receives any lump sum death grant. It can be paid to your nominee or personal representatives or to any person who appears, at any time, to have been your relative or dependant.
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.
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.
Please remember to complete a new Expression of Wish form if your wishes change.
If you have paid AVCs and a lump sum is to be paid from the your AVC fund, Merseyside Pension Fund has absolute discretion over who to pay that sum to, provided you were an active member of the LGPS on or after 1 April 2014. If you left the LGPS before 1 April 2014, the Fund must pay any AVC lump sum to your estate.