The Railways Pension Scheme Order 1994

Discretionary Trusts

7B  The lump sum death benefit shall be paid to one or more of the Beneficiaries or used for their benefit in such shares as the Trustee decides. If the benefit is not paid within 2 years of the Member’s death, however, it shall be paid to the Member’s personal representatives.

The “Beneficiaries” are the Member’s widow or widower, the Member’s grandparents and their descendants, any person with an interest in the Member’s estate and any person nominated by the Member in writing to the Trustee.

So long as no–one other than Beneficiaries can become entitled, the Trustee may:

(a) direct that all or part of the lump sum be held by itself or other trustees on such trusts (including discretionary trusts) and with such powers and provisions (including powers of selection and variation) as the Trustee sees fit; or

(b) pay all or part of the lump sum to the trustees of any other existing trust.

No payment shall be made under this Rule to the Crown or to the Duchy of Lancaster or Cornwall. If payment of the whole or any part of the lump sum death benefit would result in the payment falling to the Crown or to the Duchy of Lancaster or Cornwall as bona vacantia, the benefit, or that part of the benefit, shall be retained by the Trustee in the Section.