PART 8Death grants

Death grant: death out of service85

1

A death grant may be paid on the death of a person (D) who was in pensionable employment at any time before D’s death.

2

Paragraph (1) does not apply if—

a

a death grant may be paid under regulation 83 (death grant: death in service), or

b

a retirement pension, short-service incapacity grant or short-service serious ill-health grant, calculated in every case by reference to all of D’s reckonable service at the date of D’s death, became payable before D’s death.

3

For the purpose of paragraph (2) an ill-health pension does not become payable before a person’s death unless payment is initiated before the person’s death.

4

D falls within this paragraph if—

a

D was in pensionable employment at any time after 31st March 1972, and

b

D had reckonable service of at least 2 years and, if D was in pensionable employment on or after 1st November 1988, D was qualified for retirement benefits.

5

If D falls within paragraph (4) and no adult pension becomes payable on D’s death, the amount of the death grant is the greater of—

a

the amount mentioned in paragraph (8), and

b

the amount mentioned in paragraph (11).

6

If D falls within paragraph (4) and an adult pension becomes payable on D’s death, the amount of the death grant is the amount mentioned in paragraph (8).

7

If D does not fall within paragraph (4), the amount of the death grant is the amount mentioned in paragraph (11).

8

The amount is 3/80 x D’s average salary x D’s reckonable service (in years (and fractions of a year)) less the total of the following benefits previously payable to D other than any already deducted in the calculation of a lump sum—

a

any phased retirement lump sum in a case where the phased retirement pension payable with the lump sum ceased to be payable under regulation 59 (cessation of phased retirement pension);

b

any retirement lump sum;

c

any total incapacity lump sum;

d

any lump sum under regulation 116 (election to receive lump sum in place of pension) other than a lump sum attributable to—

i

a phased retirement pension except where the pension ceased to be payable under regulation 59 (cessation of phased retirement pension), or

ii

an additional pension;

e

any short-service incapacity grant, in a case where, after the grant became payable, D either did not re-enter pensionable employment or re-entered pensionable employment before 1st September 2010.

9

In paragraph (8)—

a

the reference to D’s reckonable service does not include a reference to reckonable service taken into account in the calculation of a phased retirement pension except where the pension ceased to be payable under regulation 59 (cessation of phased retirement pension);

b

where D was a person with mixed service to whom a pension mentioned in paragraph (10) had become payable—

i

the reference to D’s reckonable service is a reference to NPA 65 reckonable service, and

ii

the reference to benefits previously payable to D does not include a reference to benefits calculated by reference to NPA 60 reckonable service.

10

The pensions are—

a

a retirement pension payable because Case A applied to D’s NPA 60 reckonable service;

b

where D was 60 or over, an ill-health pension, or any part of such a pension, calculated by reference to D’s NPA 60 reckonable service.

11

The amount is an amount equal to a refund of D’s contributions (calculated in accordance with regulation 23) paid in respect of any reckonable service which is not taken into account in the calculation of benefits.