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Document If a pension credit member takes a larger lump sum on retirement, how may this affect the lump sum payable on their death?

A lump sum is not normally payable when a scheme pensioner dies, unless the pension has only been in payment for a very short time. Then the lump sum will be 5 times the pension that was payable after the pension was commuted to take a larger lump sum, less the amount of pension already paid. This is subject to a maximum amount equal to twice the members pensionable pay on the day the pension credit was implemented less the total retirement lump sum already paid; the lesser amount will be paid.
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larger lump sum, life assurance lump sum
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