RPSM10100050 - Technical Pages: Death benefits: Overview: Pension death benefit rules and the lump sum death benefit rule

The pension death benefit rules and the lump sum death benefit rule

A registered pension scheme is only authorised to pay out benefits following the death of a scheme member in two forms, either as a pension or as a lump sum benefit.

As with the payment of benefits in a member’s lifetime, the legislation lists

• all the authorised forms of pension and lump sum benefits that may be paid following a member’s death,
• the circumstances in which they can be paid, and
• sets out the conditions and restrictions that these payments must meet or follow in order for them to be ‘authorised’.

These are referred to in the legislation as ‘the pension death benefit rules’ and ‘the lump sum death benefit rule’, with the latter simply listing and defining the different acceptable lump sum death benefit payments possible.

The rest of this Chapter is largely concerned with how these rules are interpreted.

For more information on the pension death benefit rules see RPSM10100060.

For more information on the lump sum death benefit rule see RPSM10100070.