We all wonder at times how our loved ones would cope in the event of our death.
As a member of our scheme you have automatically made important provision for them from the moment you joined, through the scheme's valuable life cover and financial protection for families.
The LGPS death benefits that may be payable
If you die in service there are several possible benefits we may pay out, but normally there will be a death grant lump sum and a survivor's pension.
Death grant lump sum
If you die in service as an active member of our scheme, a lump sum death grant of 3 times your pensionable pay* at your date of death will be paid, irrespective of how long you've been a scheme member.
We can't pay a lump sum death grant if you are 75 or over when you die. You can nominate who you’d like to receive your lump sum death grant by completing the expression of wish form attached to this page.
We have the final discretion for who should receive the payment.
If you pay additional voluntary contributions (AVCs) arranged through our in-house AVC provider(s), the value of your AVC fund is also payable, as is any extra life cover which you may have arranged.
*we use your assumed pensionable pay to work out the lump sum death grant. It is the average of the pensionable pay which you’ll receive in the 3 months before you die. If your pensionable pay is reduced because of an authorised absence such as sick leave, your employer gives us a pay figure which effectively ignores the reduction in your pay.
Making a nomination
You can nominate anybody to be your beneficiary, including charities and other organisations by completing our 'expression of wish' form attached to this page.
You can cancel, update or change your nomination at any time by submitting a new form.
If you decide to nominate more than one person you must specify what percentage of the death grant you want each person to receive. The total amount must add up to 100%, or we will have to return the form to you to amend.
If you wish to nominate children, please be aware that if you die before they are 18, it is important that they have their own bank account or trust arrangements which we can make payment to. If we’re unable to make payment directly, it may cause delays and complications.
Disclaimer: Derbyshire County Council, as the administering authority of the Derbyshire Pension Fund, has absolute discretion in deciding who should receive payment of a death grant.
In the event of your death we will provide a pension for your
- spouse (from an opposite or same sex marriage)
- civil partner
- eligible co-habiting partner
- eligible children
The national LGPS website has more information on how your survivor's pension will be calculated.
Please make sure that our records are up to date by informing us of any changes to your marital status and providing copies of the relevant documentation.
If your child or children meet one of the following criteria, they may also be eligible to receive a pension in the event of your death:
- under the age of 18
- between the ages of 18 and 23 in full time education or vocational training
- unable to engage in gainful employment i.e. paid employment for not less than 30 hours in each week for a period of not less than 12 months, because of permanent physical or mental impairment.
The amount of pension payable will be based on how long you've been a scheme member and whether you have dependants, and therefore will be different for everyone.
If you’d like further information based upon your own circumstances, please contact us.
We have more information about death in deferment for our deferred members and also your pension when you die for our pension members.
Your employer's role
In the event of your death, your employer will contact us to let us know.
At that point, we ask your employer to provide us with details of a family member, your next of kin or another main contact, so please make sure that you always keep your employer up to date with those contact details.
Sorting out finances after someone has died isn’t always at the top of the list of things to organise, but we know how important it is. We'll liaise directly with your main contact concerning the payment of death benefits and try to make arrangements for payments to be made as quickly and smoothly as possible.
If you make an expression of wish nomination, it can help to speed up the process considerably.
Extra life cover
Scheme members have the option to purchase extra life cover via an additional voluntary contribution.
Links to useful documents