RPSM10105110 - Technical Pages: Death benefits: Lump sums pre 6 April 2011: Member dies aged under 75: Defined benefits lump sum death benefit

This guidance only covers the position where the member died before 6 April 2011. If the member died on or after 6 April 2011 see RPSM10106000.

A defined benefits lump sum death benefit

A defined benefits lump sum death benefit can only be paid

• from a defined benefits arrangement, and
• where the member died before reaching their 75^th birthday.

The lump sum must be paid within two years

A defined benefits lump sum death benefit must be paid within two years of the earlier of the following two days

• the day the scheme administrator first knew of the member’s death,
• the day on which the scheme administrator could first reasonably be expected to have known of the member’s death.

If it is paid later than two years after the earlier of these two days, it will not be a defined benefits lump sum death benefit, and (unless it falls within the definition of one of the other authorised lump sum death benefits) will be an unauthorised member payment.

For lump sum death benefits paid by schemes that are deemed to be registered schemes on 6 April 2006 by virtue of paragraph 1 (1), Schedule 36, in respect of members, and dependants of members, who died before 6 April 2006 see RPSM03111030 and RPSM03111040.