PSI24.3.3 - Pension Credit Benefits – Death Benefit Limits – Ex- spouse Dies Before Pension Credit Payment - widows', widowers' and dependants' pensions

(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.10]

The maximum pension payable to the widow, widower or a dependant of an ex-spouse member, where the ex spouse dies before payment of the pension credit rights must not exceed 2/3rds of the pension, before commutation, that could have been provided for the ex spouse on the date of death from the pension credit rights.

Where the ex spouse is below age 50 at the date of death, an age 50 annuity rate should be used to determine the pension that could have been provided to the ex spouse. For this purpose, the “age 50 annuity rate” must be determined either by an appropriate available market rate or by the scheme actuary.

There are no limits on widows', widowers' or dependants’ pensions where the pension credit rights are paid from a simplified defined contribution scheme.