Death grant and making a nomination
When a member of the Local Government Pension Scheme (LGPS) dies there are two different types of benefits which may be payable: a lump sum death grant and survivors benefits (ongoing pension).
Lump sum death grant
The amount of any lump sum death grant that is payable depends on whether you are still contributing to the scheme or if you have left employment and if you have any other death grant payable from another LGPS fund.
If you are still employed and are contributing to the scheme, the lump sum Death Grant would normally be 3 times your assumed pensionable pay. For example, a member earning £16,000 per year who dies would have a lump sum death grant of £48,000.
If you left employment before pension age and were granted deferred benefits in the scheme, the amount of the lump sum death grant will depend on when you left:
If you left after 1 April 2008, the lump sum death grant will be 5 times your deferred pension. For example, a member with a deferred pension of £6,500 who dies would have a lump sum death grant of £32,500.
If you left before 31 March 2008, the lump sum Death Grant will be your deferred retirement grant (this is normally 3 times your Deferred Pension). For example, a member with a deferred retirement grant of £19,500 who dies would have a lump sum death grant of £19,500.
If you left the scheme after 1 April 2008 and were to die within 10 years of starting to receive your pension, a death grant will be payable provided you meet the criteria set out in when is a death grant not payable?
If you left the scheme before 31 March 2008 and were to die within 5 years of starting to receive your pension, a death grant will be payable provided you meet the criteria set out in the when is a death grant not payable?
The calculations of the death grant will depend on your individual circumstances (and for those retiring after 1 April 2014) whether you chose to give up part of your pension to provide addition lump sum benefits. An explanation of how the death grant in these cases would be calculated is set out in the attached notes.
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