PSI24.3.1 - Pension Credit Benefits – Death Benefit Limits – Ex- spouse Dies Before Pension Credit Payment – lump sum

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

[PN6A.9]

The maximum lump sum death benefit payable where the ex-spouse member dies either

• before the pension credit rights come into payment, or
• after the pension sharing order is made but before it is implemented by the scheme, and irrespective of whether the scheme member's benefits were in payment at the time of the order

is 25% of what would have been the cash equivalent of the pension credit rights at the date of death. However, where the pension credit rights arise under a simplified defined contribution scheme the entire cash equivalent of the pension credit rights can be paid as a lump sum.