The Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001

26. DEATH BEFORE PAYMENT OF RETIREMENT BENEFIT

Lump sum

26.1  If a Current Member of the NATS Section dies while in Service before any retirement benefit has become payable to him from the NATS Section a lump sum death benefit calculated in accordance with Rule 25.1 shall be payable in accordance with Rule 37.

26.2  If a Member who has ceased to be a Current Member of the NATS Section and is not a Current Member of the NATS Section in respect of any subsequent period of membership of the NATS Section dies before any retirement benefit has become payable to him from the NATS Section, the Trustees shall pay in accordance with Rule 37 an amount equal to whichever is the greater of:

(a) his Final Pensionable Earnings at the date on which he ceased to be a Current Member increased on the basis described in Rule 24.3 but in respect of the period from the date on which he ceased to be a Current Member up to the date of his death; and

(b) the total of the contributions paid by him to the NATS Section under Rule 23.1 (and under the Previous Scheme Provisions) together with such of his voluntary contributions as the Trustees shall determine and his Transferred Contributions (if any), with the addition of 3% per annum compound interest on it up to the date of the Member’s death calculated by the Trustees with the guidance of the Actuary;

provided always that if such a Member dies on or after Normal Pension Date before any retirement benefit has become payable to him from the NATS Section the amount described above in this rule 26.2 shall not be payable but the Member shall be treated for the purposes of the NATS Section as if he had retired on the day before his death and the benefits payable from the NATS Section shall be as if the Member had elected to receive the maximum cash sum permissible under Rule 29.2, any such cash sum to be not less than the amount described in paragraph (a) above and to be payable in accordance with Rule 37.

26.3  If a Member who has paid voluntary contributions to the NATS Section dies before any retirement benefit has become payable to him from the NATS Section, and if the benefit basis previously arranged with the Trustees includes provision for a payment on death the Trustees shall make payment in accordance with Rule 37 of the amount they determine to be appropriate in accordance with that provision.

Spouse’s pension

26.4  If a Member of the NATS Section dies before any benefit has become payable to him from the NATS Section in respect of the current period of Pensionable Service and is survived by a Spouse (or other beneficiary to whom a pension is payable in accordance with Rule 25.3), the pension described in Rule 25.2 and equal to:

(i) 2/3rds of the Relevant Pension of a Member who dies while he is a Current Member of the NATS Section; and

(ii) 60% of the Relevant Pension of any other Member to whom this paragraph applies,

shall, subject to Rule 25.3 and Appendix 4, become payable to the Spouse (or other beneficiary as aforesaid) from the date of the Member’s death, provided that in respect of a Member who dies while he is a Current Member of the NATS Section, an additional amount shall be paid for a period of three months commencing on the date of his death such that the total payable in respect of the Member under this Rule 26.4 shall, for each such month, be equal to 1/12th of the Member’s Earnings as at the date of his death, disregarding in respect of a Class A Member and a Class B Member who became a Current Member on or after 1 June 1989 (other than a Continued Rights Member) any part of such Earnings which exceeds the Permitted Maximum at that date.

Children’s pensions

26.5  If a Member of the NATS Section dies before any benefit has become payable to him from the NATS Section and is survived by a Spouse (or other beneficiary to whom a pension is payable in accordance with Rule 25.3) and by one or more Qualifying Children the pension described in Rule 25.2 shall become payable from the date of the Member’s death (or, if the Member was a Current Member of the NATS Section at the date of his death, from the end of the period of three months mentioned in Rule 26.4 above) and shall be paid or applied by the Trustees as hereinafter described.

The amount of pension under this Rule 26.5 in respect of each Qualifying Child (up to a maximum of two) shall be 1/6th of the Relevant Pension of a Member who dies while he is a Current Member of the NATS Section and 1/4 of the Relevant Pension of any other Member to whom this Rule 26.5 applies, provided always that:

(a) if the Member’s Spouse (or other beneficiary as aforesaid) dies during the period of three months referred to above or while a pension under this paragraph is in course of payment; or

(b) if, for exceptional reasons, the Trustees in their discretion so direct,

the pension under this Rule 26.5 shall thereupon commence or, as appropriate, continue to be payable in the amount described in Rule 26.6 below, and provided further that the maximum under this Rule 26.5 where there are two or more Qualifying Children of a Member who is not a Current Member of the NATS Section at the date of his death shall be 40% of the Member’s Relevant Pension.

26.6  If a Member of the NATS Section dies before any benefit has become payable to him from the NATS Section and is survived by one or more Qualifying Children but not by a Spouse (or other beneficiary to whom a pension is payable in accordance with Rule 25.3) the pension described in Rule 25.2 and equal to 1/3rd of the Member’s Relevant Pension in respect of each Qualifying Child (up to a maximum of two) shall become payable out of the NATS Section from the date of the Member’s death and shall be paid or applied by the Trustees as hereinafter described; provided always that:

(a) if the Trustees so direct the amount of pension payable under this Rule 26.6 shall be as described in Rule 26.5 above; and

(b) the Trustees may in their discretion augment any pension payable under this Rule 26.6 by such amount as they determine but not so that the aggregate of any augmentation in respect of the Member under this paragraph (b) and of any pensions payable to Dependants under Rule 26.9 below would exceed the pension which would have been payable under Rule 26.4 above if the Member had been survived by a Spouse.

26.7  Any pension payable under Rules 26.5 or 26.6 above shall be paid from the NATS Section by the Trustees to or for the benefit of the Qualifying Child and if and so long as there are two or more Qualifying Children to or for their benefit in equal shares subject to Rule 42.

26.8  Notwithstanding the previous provisions of this Rule, the Trustees may at their discretion pay or continue to pay for such period as they think fit a pension of an amount determined by the Trustees to a child of a deceased Member of the NATS Section whether such child is not or has ceased to be a Qualifying Child if in the opinion of a Medical Adviser such child is incapable of earning his own living by reason of bodily or mental infirmity.

Dependants' pensions

26.9  If a Member of the NATS Section dies before any benefit has become payable to him from the NATS Section and is survived by one or more Dependants but not by a Spouse (or other beneficiary to whom a pension is payable in accordance with Rule 25.3) the Trustees may in their discretion decide whether a pension such that the aggregate of it and of any augmentation of pension payable under Rule 26.6 above in respect of the Member’s Qualifying Children would not exceed the pension which would have been payable under Rule 26.4 above if the Member had been survived by a Spouse shall become payable from the date of the Member’s death (or from the cessation of any pension payable under Rule 26.6 in respect of the Member’s Qualifying Children) and, if so, such pension shall be paid or applied by the Trustees to or for the benefit of such one or more of the Member’s Dependants at such rate and in such shares as the Trustees shall from time to time decide.