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Document I have Scheme Pays, what happens if I die?

If you die before we pay your annual allowance charge your election is cancelled and we will write to your estate to let them know that they retain liability for your annual allowance charge.


If we’ve paid the annual allowance charge to HMRC and then you die:

  • before your retirement – we write-off the total amount owing; or
  • after your retirement and your pension benefits had already been reduced - this has a consequential effect on the amount of initial dependant’s pension payable because this is calculated on your reduced pension in payment at the time of your death. A continuing dependant’s pension will be calculated on your unreduced pension.
If you are an NHS Money Purchase AVC Scheme member, dependant’s benefits will be calculated from the value of your money purchase fund after the deduction for scheme pays.

Please ensure that you fully understand the implications of making a scheme pays election on your future NHS benefits before completing the election notice.


You should read the guidance and factsheets available about scheme pays on our website.

scheme pays die, die with scheme pays

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