NHS Pensions
Survivors guide
2
Contents:
Introduction 3
Life assurance and family benefits 4
How to notify the Scheme of a death 15
Documentation needed 17
How payments are made 19
Tax information 21
Useful contacts 22
Notice about data given to NHS Pensions 24
NHS Pensions - Survivors Guide V12 - 04.2024
3
Introduction
This guide provides you with information and answers questions you or your family may have about claiming
and receiving life assurance and family benefits. In the event of your death we may pay a lump sum and
pension benefits to your dependants. The benefits payable will depend on your circumstances at the time
of your death. It is important that you show this guide and any other important documents you may already
have to your spouse, registered civil partner, nominated/non-nominated partner or executor, so that they
know how to apply for any benefits they may be entitled to from the Scheme. Informing them now will save
your family time and worry if they should ever need to make a claim. Recording your personal details and
keeping them in a safe place will help if you or your dependants need to contact us.
The small print
This guide is intended to provide a general overview of the life assurance and family benefits provided by
the NHS Pension Schemes. We have taken great care to get the details right at the time of publication
but it does not give a complete or legally binding statement of the law and Regulations which govern the
Schemes. Nothing in this guide can override the Regulations that set out the conditions of entitlement and
determine the rate at which benefits are payable. In the event of any conflicting information, the Regulations
will prevail.
You can find the most up to date version of all our guides on our website at:
www.nhsbsa.nhs.uk/nhs-pensions. If you are in any doubt about how benefits are calculated or what
your entitlement may be, please contact your local pension administrator or NHS Pensions.
Introduction
4
Life assurance and family benefits
The NHS Pension Schemes provide lump sum and pension benefits to eligible dependants in the event of the
member’s death. The benefits payable will depend on which section/scheme the member was in and their
circumstances at the time of death. These are listed on pages 7-12.
Lump sum on death benefit
A lump sum on death benefit may be paid if a member dies before retiring or within five years of their
retirement. The amount payable where the member dies after retirement will depend on the total amount of
retirement benefits they have received from the Scheme up to the date of death. Sometimes the Scheme’s
liability may have already been discharged meaning no lump sum is payable, for example if the member
exchanged some of their pension to receive a lump sum or bigger lump sum when they retired.
The NHS Pension Scheme is not a discretionary scheme. The lump sum on death benefit will be paid to
the legal spouse, registered civil partner or qualifying scheme partner unless the member has nominated
someone else on the lump sum on death benefit nomination form (DB2).
If there is no legal spouse, registered civil partner, qualifying scheme partner or nomination, the lump sum
on death benefit will be paid to the member’s Estate. If the lump sum amount is £5,000 or more, sight of a
Grant of Probate or Letters of Administration will be requested before the lump sum is paid.
A lump sum on death benefit is not included in an Inheritance Tax assessment if paid to the member’s
spouse or registered civil partner. A lump sum on death benefit paid to a qualifying scheme partner or
nominated individual(s) may be subject to Inheritance Tax.
Important
HM Revenue & Customs (HMRC) has strict rules about the payment of the lump sum on death benefit.
The lump sum on death benefit must be paid within two years of the member’s death first being notified
to us.
After two years the lump sum will be subject to a HMRC tax charge of up to 45%.
NHS Pensions has no discretion and must deduct this tax charge from the lump sum payment.
Life assurance and family benefits
5
Dependants’ pensions
These are payable to a spouse, registered civil partner, qualifying scheme partner or dependent child or
children from the date of the member’s death. The amount of dependant’s pension payable depends on
the deceased member’s length of pensionable membership.
Adult dependant’s pension
An adult dependant’s pension is payable to an eligible spouse, registered civil partner or a qualifying
scheme partner who meets all eligibility conditions as noted on the partner nomination form (PN1). If
membership is extended to or beyond 1 April 2008, an adult dependant’s pension is payable for life
regardless of whether the recipient remarries, forms a civil partnership or lives with someone else as a
spouse or partner. Where membership ended before 1 April 2008, an adult dependant’s pension will
normally end if the recipient remarries, forms a civil partnership or lives with someone else as a spouse or
partner. However, the pension may be reinstated if the withdrawal of it causes severe financial hardship.
An adult dependant’s pension does not form part of the member’s Estate, and cannot be transferred to
anyone else.
Married couples, civil partners and qualifying scheme partner
The adult dependant’s pension for a surviving spouse, civil partner or qualifying scheme partner will
depend on which section/scheme the member was in. Details can be found on pages 7-12.
Qualifying scheme partner pensions
To qualify for a scheme partner pension all the following conditions must be satisfied at the date of the
member’s death and have existed for a continuous period of at least two years:
•
neither person has a legal partner i.e. a spouse or registered civil partner
•
they are not related to each other in a way which would prevent marriage or registered civil
partnership
•
they are living together in an exclusive relationship as if they were husband and wife or civil partners
•
the member and partner are financially interdependent or the partner is financially dependent on the
member.
Dependency checks are made after the member dies; this typically means things like sharing bank
accounts and a mortgage, naming each other in a Will, or running a joint household.
If all the above conditions are satisfied, the nominated/non-nominated partner will need to provide at least
two forms of supporting documentation as proof of financial interdependency / dependency, for example
shared mortgage, bank accounts or household expenditure documents.
Once the above conditions are satisfied, that person has the same status as a spouse or civil partner and
any lump sum on death benefit would automatically be payable to them unless the member had made a
valid nomination in favour of another person.
Life assurance and family benefits
6
Children’s pension
If there are any dependent children a children’s pension may be payable. A children’s pension can also
include a number of other possible child dependents, not just the member’s own children.
‘Children’ can include:
•
biological children
•
children of a civil partner or qualifying scheme partner
•
step children and adopted children
•
a brother or sister of the member or of their spouse, civil partner or qualifying scheme partner
•
a nephew or niece of the member or of their spouse, civil partner or qualifying scheme partner
•
a grandchild
•
a half brother, half sister, step brother, or step sister of the member or of their spouse, civil partner or
qualifying scheme partner
•
children born before the member leaves pensionable employment
•
children born within 12 months of the date the member leaves pensionable employment.
•
Where Scheme membership extended to or beyond 1 April 2008 a children’s pension may be paid if
the child is dependent on the member both at retirement and at the date of death, and they are:
•
under age 23, or
•
aged 23 or over and incapable of earning a living due to permanent physical or mental infirmity from
which he/she was suffering at the time the member died.
•
Where Scheme membership ended before 1 April 2008, a children’s pension may be paid if the child is
dependent, both at retirement and at the date of death, and they are:
•
under age 17, or
•
aged 17 or over but has not reached the age of 23 and is continuing in full time education or training,
or
•
aged 17 or over and incapable of earning a living due to permanent physical or mental infirmity from
which he/she was suffering at the time the member died.
A children’s pension does not form part of the member’s estate. It is paid to the person who has care of
the child(ren) or the child’s own bank account, even if they are a minor.
The appropriate claim form for payment of children’s pension is available from our website at:
www.nhsbsa.nhs.uk/nhs-pensions
Life assurance and family benefits
7
Summary of benefits
Each Section/Scheme provides slightly different benefits. The following tables show the benefits that are
payable from each.
The table below does not include re-employed and partial retirement pensioner members
1995 Section
Benefit
Death in
membership (on or
after 2008)
Death of a
pensioner member
Death with deferred
pension
Death of a recent
leaver with
less than two
years’ qualifying
membership
1
Lump sum on
death
2 x annual
pensionable pay or
average uprated
earnings for
practitioners
6
The lesser of: 5 x
pension less pension
already paid or
2 x pay less any
retirement lump sum
3 x pension payable
if member had
retired on date of
death
3 x annual pension
the member would
have received had
they retired on the
date of death
Adult
dependant’s
pension (at
least two years
membership)
A continuing adult
dependant’s pension
of either:
50% of the notional
7
tier 2 ill health
pension if under age
60 at the date of
death: or
50% of the notional
age pension if over
age 60 at the date of
death
Either pension will
be based on all
membership, but
if you are the
qualifying Scheme
partner of a member
either pension will
not include any
membership prior to
6 April 1988
Plus a short term
pension equal to the
rate of pensionable
pay
2
for the first 6
months
A continuing adult
dependant’s pension
of 50% of the
member’s pension in
payment
3
based on
all membership
If you are the
qualifying Scheme
partner of a member
the pension will
not include any
membership prior to
6 April 1988
Plus a short term
pension equal to
the rate of the
member’s pension
in payment for the
first 3 months or 6
months if there is
at least one eligible
dependent child
A continuing adult
dependant’s pension
of either:
50% of the notional
7
tier 2 ill health
pension if date of
death within 12
months of leaving;
or
50% of the notional
age pension if date
of death is more
than 12 months
after leaving.
Either pension will
be based on all
membership, but
if you are the
qualifying Scheme
partner of a member
either pension will
not include any
membership prior to
6 April 1988.
No short term
pension is payable
Not applicable
Adult
dependant’s
pension (less
than two years
membership
before age 60)
A short term pension
equal to the rate of
pensionable pay
2
for
6 months only
Not applicable Not applicable
No pension is
payable
Life assurance and family benefits
8
Adult
dependant’s
pension (less
than two years
membership after
age 60)
A continuing
adult dependant’s
pension of 50% of
the notional
7
age
pension
Plus a short term
pension equal to the
rate of pensionable
pay
2
for the first 6
months
Not applicable Not applicable Not applicable
Children’s
pension
A children’s pension
of 25% of the
notional
7
tier 2 ill
health pension
8
for
1 child (50% shared
equally for two or
more children)
4
A short term pension
equal to the rate of
pensionable pay
2
may be payable for 3
or 6 months
5
A children’s pension
of 25% of the
pension
8
for 1 child
(50% shared equally
for two or more
children)
4
A short term pension
equal to the rate of
pension paid may be
payable for the first
3 or 6 months
5
A children’s pension
of either 25% of
the notional
7
tier 2
ill health pension if
date of death within
12 months of leaving
for 1 child (50%
shared equally for 2
or more children); or
A children’s pension
of 25% of the
notional age pension
8
where date of
death is more than
12 months after
leaving for 1 child
(50% shared equally
for 2 or more
children)
4
No short term
pension is payable
A children’s pension
of 25% of the
notional
7
tier 2 ill
health pension
8
(50% shared equally
for 2 or more
children)
4
No short term
pension is payable
1
a member who dies within 12 months of leaving the Scheme who did not build up enough pensionable membership
to qualify for pension benets and has not been paid a refund or transfer value
2
if the member was in a practitioner or non-GP provider employment, it is the rate of pensionable earnings during
the last complete quarter before the member’s death
3
will not include any additional pension being paid unless dependent’s cover has been purchased with it
4
higher rates may be payable if there is no adult dependant’s pension payable
5
3 months where the child is not dependent on the adult receiving the adult dependant’s pension or 6 months where
there is no adult dependant’s pension payable; otherwise no short term pension is payable
6
A lump sum on death benet is payable for members with less than two years’ membership
7
a ‘notional’ pension is the amount that would have been payable as at the member’s date of death
8
the pension will be based on a minimum of 10 years pensionable membership
Where your marriage or civil partnership took place after you left pensionable employment the adult dependant’s
pension payable will be based on membership from 6 April 1978 only.
Where you started a partnership after you left pensionable employment/retired, in qualifying cases, the adult
dependant’s pension will be based on membership from 6 April 1988 only.
If you bought additional pension with dependents cover there will be extra benets payable. More information is
available on our website at: www.nhsbsa.nhs.uk/nhs-pensions
The lump sum on death benefit must be paid within two years of the date upon which the Scheme
Administrator was first notified of the member’s death otherwise it will be subject to a HMRC tax charge of
up to 45%. NHS Pensions has no discretion and must deduct this tax charge from the lump sum payment.
Life assurance and family benefits
9
2008 Section
Benefit
Death in
membership (on or
after 2008)
Death of a
pensioner member
Death with
deferred pension
Death of a recent
leaver with less than
two years’ qualifying
membership
1
Lump sum on
death
2 x reckonable pay
or average uprated
earnings for
Practitioners
6
The lesser of: 5
x pension less
pension already
paid or
2 x reckonable pay
less any retirement
lump sum taken
2.25 x annual
pension the
member would have
received had they
retired on the date
of death assuming
they did not take a
lump sum
2.25 x annual
pension the member
would have received
had they retired on
the date of death
assuming they did
not take a lump sum
Adult
dependant’s
pension (at
least two years
membership)
A continuing
adult dependant’s
pension of either:
37.5% of the
notional
7
tier 2 ill
health pension if
under age 65 at
date of death; or
37.5% of the
notional age
pension if over age
65 at date of death
Plus a short term
pension equal
to the rate of
pensionable pay
3
for the first 6
months
A continuing
adult dependant’s
pension of 37.5%
of the member’s
pension in
payment
2
Plus a short term
pension equal to
the rate of the
member’s pension
in payment for the
first 3 months or 6
months if there is
at least one eligible
dependent child
A continuing adult
dependant’s pension
of either:
37.5% of the
notional
7
tier 2
ill health pension
if date of death
within 12 months of
leaving; or
37.5% of the
notional
7
age
pension if date of
death more than 12
months after leaving
No short term
pension
Not applicable
Adult dependant’s
pension (less
than two years
membership before
age 65)
A short term
pension equal
to the rate of
pensionable pay
3
for 6 months only
Not applicable Not applicable No pension payable
Adult dependant’s
pension (less
than two years
membership after
age 65)
A continuing
adult dependant’s
pension of 37.5%
of the notional
7
age
pension
Plus a short term
pension equal
to the rate of
pensionable pay
3
for the first 6
months
Not applicable Not applicable Not applicable
Life assurance and family benefits
10
Children’s pension
A children’s pension
of 18.75% of the
notional
7
tier 2 ill
health pension
8
for 1 child (37.5%
shared equally
for two or more
children)
4
A short term
pension equal
to the rate of
pensionable pay
3
may be payable
for the first 3 or 6
months
5
A children’s
pension of 18.75%
of the pension
8
in
payment for 1 child
(37.5% shared
equally for two or
more children)
4
A short term
pension equal to
the rate of pension
paid may be
payable for the first
3 or 6 months
5
A children’s pension
of either 18.75% of
the notional
7
tier 2
ill health pension
8
if date of death
within 12 months
of leaving for 1
child (37.5% shared
equally for two or
more children); or
A children’s pension
of 18.75% of
the notional age
pension
8
where date
of death is more
than 12 months
after leaving for 1
child (37.5% shared
equally for two or
more children)
No short term
pension is payable
A children’s pension
of 18.75% of the
notional
7
tier 2 ill
health pension
8
(37.5% shared
equally for two or
more children)
4
No short term
pension is payable
The table above does not include re-employed and partial retirement pensioner members.
1
a member who dies within 12 months of leaving the Scheme who did not build up enough pensionable membership
to qualify for pension benefits and has not been paid a refund or transfer value
2
Will not include any additional pension being paid unless dependents cover has been purchased with it
3
if the member was in a practitioner or non-GP provider employment, it is the rate of pensionable earnings during the
last complete quarter before the member’s death
4
higher rates may be payable if there is no adult dependant’s pension payable
5
3 months where the child is not dependent on the adult receiving the adult dependant’s pension or 6 months where
there is no adult dependant’s pension payable; otherwise no short term pension is payable
6
A lump sum on death benefit is payable for members with less than two years’ membership
7
a ‘notional’ pension is the amount that would have been payable as at the member’s date of death
8
the pension will be based on a minimum of 10 years pensionable membership
If you have less than two years’ membership and die before you leave or retire, your spouse, civil partner, or
qualifying scheme partner would receive a lump sum on death benefit and a short term pension payable for
six months.
The lump sum on death benefit must be paid within two years of the date upon which the Scheme
Administrator was first notified of the member’s death otherwise it will be subject to a HMRC tax charge of
up to 45%. NHS Pensions has no discretion and must deduct this tax charge from the lump sum payment.
If you bought additional pension with dependants’ cover there will be extra benefits payable. You can find
more information about additional pension on our website at: www.nhsbsa.nhs.uk/nhs-pensions
Life assurance and family benefits
11
2015 Scheme
Benefit
Death in
pensionable
membership
Death of a
pensioner
member
1
Death with
deferred pension
Death of a recent
leaver with
less than two
years’ qualifying
membership
1
Lump sum on
death
The higher of:
2 x the relevant
earnings in the
last 12 months
of pensionable
service
or
2 x the revalued
pensionable
earnings for the
Scheme year,
up to 10 years
earlier, with the
highest revalued
pensionable
earnings
The lesser of:
5 x annual
pension amount
less pension
already paid;
or
2 x the lump sum
payable had they
been an active
member on the
date of death less
any retirement
lump sum
(commutation)
already taken
2.025 x the
annual pension
the member
would have
received had they
retired on the date
of death
2.025 x the
annual pension
the member
would have
received had they
retired on the date
of death
Adult
dependant’s
pension (at
least two years
membership)
Either:
33.75% of the
notional
6
tier 2
ill health pension
if under normal
pension age at
date of death
or
33.75% of the
notional age
pension if over
Normal Pension
Age at date of
death
Short term
pension equal
to the rate of
pensionable
earnings
3
for 6
months
A continuing
adult dependant’s
pension of
33.75% of the
member’s pension
in payment
2
Plus a short term
pension equal to
the rate of the
member’s pension
in payment for the
first 3 months or
6 months if there
is at least one
eligible dependent
child
A continuing
adult dependant’s
pension of either:
33.75% of the
notional
6
tier 2
ill health pension
if date of death
within 12 months
of leaving; or
33.75% of the
notional
6
age
pension if date of
death more than
12 months after
leaving
No short term
pension is payable
No pension is
payable
Adult dependant’s
pension (less than
two years member
ship and under
normal pension age)
A short term
pension equal
to the rate of
pensionable
earnings
3
for 6
months only
Not applicable Not applicable
No pension is
payable
Life assurance and family benefits
12
Benefit
Death in
pensionable
membership
Death of a
pensioner
member
1
Death with
deferred pension
Death of a recent
leaver with
less than two
years’ qualifying
membership
1
Adult dependant’s
pension (less
than two years
membership and
over normal pension
age)
A continuing
adult dependant’s
pension of
33.75% of the
notional
6
age
pension
Plus a short term
pension equal
to the rate of
pensionable
earnings
3
for the
first 6 months
Not applicable Not applicable Not applicable
Children’s pension
A children’s
pension of
16.875% of the
notional
6
tier 2 ill
health pension
7
for 1 child
(33.75% shared
equally for two or
more children)
4
A short term
pension equal
to the rate of
pensionable
earnings
3
may
be payable for
the first 3 or 6
months
5
A children’s
pension of
16.875% of
the pension
7
in
payment for 1
child (33.75%
shared equally
for two or more
children)
4
A short term
pension equal
to the rate of
pension paid may
be payable for
the first 3 or 6
months
5
A children’s
pension of either
16.875% of the
notional
6
tier 2 ill
health pension
7
if date of death
within 12 months
of leaving for 1
child (33.75%
shared equally
for two or more
children); or
A children’s
pension of
16.875% of the
notional age
pension
7
where
date of death is
more than 12
months after
leaving for 1 child
(33.75% shared
equally for two or
more children)
No short term
pension is payable
A children’s
pension of
16.875% of the
notional
6
tier 2 ill
health pension
7
(33.75% shared
equally for two or
more children)
4
No short term
pension is payable
The table above does not include re-employed pensioner and partial retirement pensioner members
1
a member who dies within 12 months of leaving the Scheme who did not build up enough pensionable
membership to qualify for pension benefits
2
will not include any additional pension being paid unless dependants cover has been purchased with it
3
if the member was in a practitioner or non-GP provider employment, it is the rate of pensionable earnings during
the last complete quarter before the member’s death
4
higher rates may be payable if there is no adult dependant’s pension payable
5
3 months where the child is not dependent on the adult receiving the adult dependant’s pension or 6 months
where there is no adult dependant’s pension payable; otherwise no short term pension is payable
6
a ‘notional’ pension is the amount that would have been payable as at the member’s date of death
7
the pension will be based on a minimum of 10 years pensionable membership
Life assurance and family benefits
13
The lump sum on death benefit must be paid within two years of the date upon which the Scheme
Administrator was first notified of the member’s death otherwise it will be subject to a HMRC tax charge of
up to 45%. NHS Pensions has no discretion and must deduct this tax charge from the lump sum payment.
If you bought additional pension with dependants cover there will be extra benefits payable. More
information is available on our website: www.nhsbsa.nhs.uk/nhs-pensions
Adult dependant’s pension
When the continuing adult dependant’s pension is first put into payment, and it is less than £260 a year, it
will automatically be converted to a one off payment (known as trivial commutation).
The adult dependant’s pension can still be commuted, even if there is at least one dependent child eligible
for a children’s pension at the time of death.
Note: It doesn’t matter how small a children’s pension is, it cannot be commuted.
Where the continuing adult dependant’s pension is £260 a year or more, the pension will be paid as a
monthly pension. Although spouses/civil partners/scheme partners are currently not given the option to
commute such small pensions into a lump sum when they first claim, NHS Pensions will consider a written
request at the point of claim or post payment, provided all conditions are met.
Important note: It is possible to convert a small adult dependant’s pension to a one off payment. However,
Her Majesty’s Revenue & Customs (HMRC) only allow this if the gross trivial commutation amount does not
exceed the current commutation limit of £30,000* (£18,000 for a lump sum paid before 6 April 2015).
*This is the maximum amount in each NHS Pension Scheme, not the maximum across all pension schemes.
The £30,000 is gross before taxation.
The recipient must agree to offset any pension already paid against any trivial commutation lump sum.
HMRC can change this limit at any time.
Bank staff and freelance GP locum
Bank staff or a freelance GP locum is regarded as being in pensionable employment if they are at work and
paying into an NHS Pension Scheme. A bank worker or freelance GP locum who is available for work but
who is not actually at work when they die is not covered for ‘death in service’ benefits.
For example, if they are contracted to work 9am to 5pm, Monday, Tuesday, and Wednesday they are covered
for ‘death in service’ benefits upon joining the Scheme from 9am Monday until midnight on Wednesday.
But, if they were to die on the Thursday, regardless of whether they were due to return to work the
following Monday, they would not be regarded as being in pensionable employment and not eligible for
‘death in service’ benefits.
Instead, the Scheme would pay death benefits as if they had died within 12 months of leaving pensionable
employment.
For example, if they are contracted to work 9am to 5pm on a Monday only they are covered for ‘death
Life assurance and family benefits
14
in service’ benefits upon joining the Scheme from 9am Monday until midnight. But If they died on the Tuesday,
regardless of whether they were due to return to work at some time in the future, they would not be regarded as
being in pensionable employment and not eligible for ‘death in service’ benefits.
Instead, the Scheme would pay death benefits as if they had died within 12 months of leaving pensionable
employment.
Further information
Further information is available on our website at: www.nhsbsa.nhs.uk/nhs-pensions
Life assurance and family benefits
15
How to notify the NHS Pension Scheme of a
death
It is essential that the Scheme is notified of a member’s death as quickly as possible. This is to ensure the
process of establishing whether benefits are due can be started without delay. Who to notify will depend on
whether death occurs:
•
whilst an active member of the Scheme (Active member)
•
with entitlement to ‘deferred’ benefits (Deferred member)
•
whilst receiving an NHS pension (Pensioner member).
Important
The lump sum on death benefit must be paid within two years of the date upon which the Scheme
Administrator was first notified of the member’s death otherwise it will be subject to a HMRC tax charge
of up to 45%. NHS Pensions has no discretion and must deduct this tax charge from the lump sum pay-
ment.
If the member dies after reaching age 75 and they were 75 on or before 5 April 2011, the lump sum will
be converted to an annual pension paid to the dependant.
If the member dies after reaching age 75 and they were 75 on or after 6 April 2011, the lump sum is
subject to a lump sum death benefit charge of 45% if paid to an organisation or the marginal tax rate of
the recipient. This tax charge is deducted from the lump sum before payment.
Active member
Where a member was working in pensionable NHS employment at the time of their death, their last
employer will arrange completion of the appropriate application forms.
Deferred member
A deferred member is a member with two or more years’ membership who no longer pays into the Scheme
and chose to leave their benefits in the Scheme. The form to claim death benefits for a deferred member can
be downloaded from our website at: www.nhsbsa.nhs.uk/nhs-pensions
If you contact us please quote the member’s membership (SD) number and National Insurance number.
How to notify the NHS Pension Scheme of a death
16
Pensioner member
If the member was in receipt of their NHS pension you should contact us. It is important to stop pension
payments as soon as possible to prevent an overpayment. You can find contact details on page 22.
The pension is paid up to and including the date of death. No one is entitled to receive the pension
payments made after their death, and any overpayment must be repaid. We can provide pension payment
and tax deduction details if required to help you administer the member’s Estate.
If the pension is overpaid directly to a bank or building society account we will ask the bank or building
society to refund the appropriate amount. We will also advise the next of kin or personal representative of
our action, or notify them if there is any residue of pension or other payment due.
If the pension is paid into a joint account it is important that the other account holder is aware of this
condition.
Claiming the adult dependant’s pension
A surviving spouse, civil partner or qualifying scheme partner of a pensioner member who is eligible for
an adult dependant’s pension must apply for it. We will send an application form to complete so that the
pension can start as soon as possible. Applications and documentary evidence in respect of nominated/non-
nominated partners must be sent to NHS Pensions for their consideration.
It would be helpful for us to know if a spouse, civil partner or nominated/non-nominated partner dies before
the member so that we can avoid causing any distress through the issue of an incorrect application form.
You will find contact details on page 22. When contacting us please make sure you quote the member’s NHS
Pensions membership (SD) number and National Insurance number.
How to notify the NHS Pension Scheme of a death
17
Documentation needed
Grant of Probate/Letters of Administration
A Grant may be required in order to pay a lump sum on death benefit where the member has not completed
a death benefit nomination form and does not leave a spouse, civil partner or nominated/non-nominated
partner who meets the criteria for payment of an adult dependant’s pension. It is not normally required if the
lump sum on death benefit is less than £5,000.
A Grant is a legal document issued by the Probate Registry authorising someone to deal with the Estate of
the deceased person. That person collects all monies, settles any debts, releases capital from property and
possessions and distributes the proceeds to those entitled to a share of the Estate.
Where the Legal Personal Representative is living abroad and the lump sum on death benefit is £5,000 or
more, an English Grant of Probate or Letters of Administration is still needed. If these are obtained abroad, it
may be acceptable but only after it has been re-sealed by an English court.
The type of Grant applied for depends on whether there is a Will.
About a Will
A Will is a legal document stating how the deceased person wishes their Estate to be shared. The people
who receive a share of the Estate are the Beneficiaries and the people chosen to administer the Will are the
Executors. The Executors are usually the people who apply for a Grant of Probate. This certifies that the Will
is authentic.
If there is no Will
If a Will has not been written then it may be necessary to apply to the Probate Registry for Letters of
Administration. Like a Grant of Probate, Letters of Administration legally authorise someone to deal with the
Estate of the deceased person.
If the Scheme has not received a member’s death benefit nomination, and there is no spouse, civil partner
or qualifying scheme partner who meets the criteria for payment of an adult dependant’s pension, you may
decide to employ a solicitor to deal with the estate on your behalf. The Scheme requests a copy of either a
Grant of Probate or Letters of Administration before any lump sum on death benefit of £5,000 or more can
be made.
For lump sum on death benefits of less than £5,000 where Letters of Administration are not always
necessary, the Scheme issues an indemnity form for completion. This absolves the Scheme of any further
liability to make payments should anyone else make a claim to the Estate.
Do not send the Will, Grant of Probate, or Letters of Administration with the application form. We will write
to you if we need them.
Documentation needed
18
Inheritance Tax
Inheritance Tax is the responsibility of the Capital Taxes Office of HMRC. As a general guide any amount
paid as a lump sum on death benefit is included in an Inheritance Tax assessment if it is paid to the Estate,
nominee or qualifying scheme partner. It is not included if the benefit is paid to a spouse or registered civil
partner. A nominated beneficiary should check their own tax position.
Adult dependant’s pension and children’s pensions do not form part of the Estate.
If further information is required the personal representative should go to HMRC’s website at:
www.hmrc.gov.uk
Certificates
For your protection, it is essential that certain documents are provided as soon as possible in order to ensure
that benefits are paid to the right people, and also to establish their identity.
•
Member’s death certificate*
•
Marriage certificate*
•
Surviving spouse\civil partner’s birth certificate*
•
Children’s birth certificate*
•
Grant of Probate or Letters of Administration
•
Decree Absolute\Dissolution of civil partnership certificate
•
Civil partnership certificate*
•
Spouse\civil partner\death benefit nominee\scheme partner’s death certificate*
•
death benefit nominee’s birth certificate*
•
Nominated/non-nominated partner’s birth certificate*
•
Change of name deed*
•
Power of Attorney*
•
Court Protection Order (if appropriate)*
*Replacement(s) can be ordered from www.gro.gov.uk
Only an original or certified copy of certificates can be accepted. These will be copied and
returned to you immediately. Photocopies will not be accepted.
Lost or mislaid certificates
A birth, death, marriage, divorce or dissolution of civil partnership is registered in the district where it took
place. A replacement certificate can be obtained on application to the district’s Register Office.
Documentation needed
19
How payments are made
Lump sum on death benefit
The lump sum on death benefit is paid to the beneficiary by payable order or paid into a bank or building
society account.
Adult dependant’s and children’s pensions
It is important that the UK bank or building society account you wish to receive payment into is able to
accept electronic payments by the Bankers Automated Clearing Services (BACS) method. Your bank or
building society will be able to advise you on this. If the account details you provide cannot accept BACS
payments, your payment will be rejected and this may lead to a delay in payment of your pension benefits.
The account can be at a bank or building society with a branch:
•
in the United Kingdom (but not National Savings and Investments (NS&I))
•
in the Channel Isles, Isle of Man or Republic of Ireland
•
overseas, provided it is capable of receiving secure electronic payment of funds in local currency.
Currently such arrangements exist with banks in the following countries:
Antigua and Barbuda
Australia
Austria
The Bahamas
Bangladesh
Barbados
Belgium
Bulgaria
Canada
Cyprus
Czech Republic
Denmark
Dominica
Dominican Republic
Egypt
Finland
France and Monaco
Germany
Ghana
Gibralta
Greece
Grenada
Guinea Bissau
Guyana
Hong Kong
India
Indonesia
Ireland
Israel
Italy
Jamaica
Kenya
Liechenstein
Luxemburg
Malta
Malaysia
Mauritius
Mexico
Nepal
Netherlands
New Zealand
Nigeria
Norway
Oman
Pakistan
Peru
Philippines
Poland
Portugal
Qatar
Saudi Arabia
Singapore
South Africa
Spain
Sri Lanka
St Kitts and Nevis
St Lucia
St Vincent and the Grenadines
Sweden
Switzerland
Thailand
Trinidad and Tobago
Tunisia
Turkey
United Arab Emirates
USA
Vietnam
Zimbabwe
How payments are made
20
If you are planning to retire to a country that is not listed, you will need to make arrangements to have your
pension paid into a bank in one of the countries listed. Your chosen bank will be able to assist you in arrang-
ing for the funds to be forwarded to you.
If required you will need to complete a mandate form for payment to be made to an overseas bank. You can
download the appropriate form for the country you need from our website at:
www.nhsbsa.nhs.uk/nhs-pensions or by writing to NHS Pensions. Please complete it and attach it firmly to
your Dependent Claim Form (DCF).
The pension is normally paid monthly (one twelfth of the yearly rate, to the nearest penny) on the same date
each month. We will tell you what the payment date is. This may not be the last day of the month.
When the payment date falls on a weekend or an English or Welsh public holiday, the payment will go into
the account on the last working day before the weekend or the holiday.
We will not send details of the pension amount each time a payment is made, but we will make contact
when the pension begins and each time there is a change in tax code or in the yearly rate, for example
because of a cost of living increase.
The pension can only be paid into either the payee’s own account or a joint account with someone else.
Please contact us with any queries regarding payments. You will find our contact details on page 22 of this
guide.
How payments are made
21
Tax information
The NHS Pension Scheme is a Statutory Pension Scheme as defined in Section 612(1) of the Income &
Corporation Taxes Act 1988. On 6 April 2006 it became a Registered Pension Scheme for the purposes of the
Finance Act 2004. The 1995/2008 NHS Pension Scheme Tax Reference (PSTR) Number is 00328820RJ. The
2015 NHS Pension Scheme Tax Reference (PSTR) Number is 00820574RJ.
Lifetime allowance
The lifetime allowance is the limit set by the government on the capital value of benefits an individual can
take without incurring a tax charge. The lifetime allowance is normally tested at the point benefits are paid.
If the payment of the lump sum on death benefit partly or wholly causes the lifetime allowance to be
exceeded, then the excess payment above the lifetime allowance will be subject to a lifetime allowance
charge. The lifetime allowance and lifetime allowance charges are administered by HMRC.
Whenever a lump sum on death benefit is payable we will inform the legal personal representative of the
amount and percentage of the standard lifetime allowance represented by the lump sum. The legal personal
representative is responsible for notifying this figure to HMRC if there is a lifetime allowance charge. The
beneficiary of the lump sum on death benefit is legally responsible for paying any lifetime allowance charge
that may become due.
More information about lifetime allowance is available on our website at: www.nhsbsa.nhs.uk/nhs-pensions
Income tax
For tax purposes pension payments are treated as earned income. At first we will deduct tax under a
temporary code until we get the right code from HMRC who will decide what the tax code should be.
If you want to query the tax code, please write to the address below. Tell them the member’s National
Insurance number and NHS Pensions membership number.
The address is:
HM Revenue and Customs
Pay As You Earn
BX9 1AS
If tax has been deducted from the pension, we will send a P60 after the end of each tax year, to show the
total pension paid and the amount of tax deducted in that year.
Tax information
22
Useful contacts
NHS Pensions contact details
NHS Pensions
PO BOX 683
Unit 5
Newcastle-Upon-Tyne
NE5 9EE
Telephone: 0300 330 1346
Website: www.nhsbsa.nhs.uk/nhs-pensions
The helpline is open from 8.00 am to 6.00 pm Monday to Friday. We are closed on public holidays.
The NHSBSA enquiry system ‘Ask Us’ enables you to get answers to questions you may have
about the Pension Scheme by going to the NHS Pensions website homepage and clicking on
the ‘Ask Us’ button. The facility can be used to get an answer to queries 24 hours a day, seven
days a week without the need to call the helpline.
Useful contacts
23
Below are the contact details for organisations you may wish to get in touch with:
HM Revenue & Customs
Website: www.hmrc.gov.uk
The Pensions Advisory Service (TPAS) - If you wish to contact TPAS the address is:
11 Belgrave Road, London, SW1V 1RB
Telephone: 0345 601 2923
Website: www.pensionsadvisoryservice.org.uk
Scottish Public Pensions Agency (SPPA) - The SPPA are responsible for adminstering the NHS Pension
Scheme for Scotland.
If you wish to contact them the address is:
Scottish Public Pension Agency
7 Tweedside Park
Tweedbank
Galashiels
TD1 3TE
Telephone: 01896 893000
State Pensions
For information about state pensions please contact the Pensions Service at:
www.gov.uk/state-pension/overview
Useful contacts
24
Notice about data given to NHS Pensions
We have a duty to protect the public funds we administer. To this end we may use the information
provided to us for the prevention and detection of fraud and share it with other bodies administering
public funds solely for these purposes.
NHS Pensions is currently participating in an anti fraud initiative organised by the Audit Commission and
being carried out under Section 6 of the Audit Commission Act 1998. Under this initiative we are providing
details of occupational pensioners to the Commission so that they can compare them with information
provided by other public bodies to ensure that:
•
no pensions are being paid to persons who are deceased
•
occupational pension income is being declared by housing benefit claimants
•
re-entry to NHS employment is disclosed.
While the main purpose of the exercise is the detection of fraud, these exercises help ensure the best use
of public funds.
How we use your information
The NHS Business Services Authority – NHS Pensions will use the information provided for administering
your NHS Pension Scheme membership and processing payment of your NHS pension benefits. We may
share your information to administer and pay your NHS pension, enable us to prevent and detect fraud and
mistakes, for debt collection purposes, or as required by law. For more information about who we share
your information with and how long we keep your personal data and your rights, please visit our website
at www.nhsbsa.nhs.uk/yourinformation
Notice about data given to NHS Pensions
