The Armed Forces Pension Regulations 2014

Death of a member: lump sum benefit

78.—(1) On the death of a member, the scheme manager may pay a lump sum to—

(a) the person or persons nominated by the member in accordance with regulation 84 (nominations for lump sum death benefits);

(b) if there is no person within sub-paragraph (a), to any person who is entitled to a pension under regulation 65 or 67 (surviving spouses’ and civil partners’ pensions and other adult dependants’ pensions) in respect of the member;

(c) if there is no person within sub-paragraphs (a) or (b), to any person who, but for the application of regulation 65 or 67 would be so entitled or to whom a pension may be awarded; or

(d) if there is no person within sub-paragraph (a), (b) or (c), to the member’s personal representatives.

(2) If the scheme manager decides to pay all or part of the lump sum in accordance with a nomination then—

(a) the payment is to be made to them in such proportions as the member has specified in the nomination; or

(b) if no proportions are so specified, in such proportions as the scheme manager considers appropriate.

(3) This regulation does not apply if—

(a) the member is—

(i) a pensioner member, who is not also a deferred member or an active member; or

(ii) a pension credit member who dies after any benefits attributable to a pension credit have become payable and who is not also an active member, a deferred member or a pensioner member; and

(b) the death takes place—

(i) more than 5 years after the member’ pension becomes payable; or

(ii) after the member’s pension has been commuted under regulation 116 (commutation of small pensions) or 60 (option for members in serious ill-health to exchange whole pension for lump sum).