RPSM10105400 - Technical Pages: Death benefits: Lump sums pre 6 April 2011: Member dies aged 75 or over: Member nominates payment of a charity or transfer 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.

The member may nominate that a charity lump sum death benefit or transfer lump sum death benefit will be paid on their death

A member can nominate that any remaining funds are to be paid out as a charity lump sum death benefit. They do this by nominating the charity that should benefit from the payment. If no such nomination is made the scheme administrator may still decide that a charity lump sum death benefit should be paid.

Before 6 April 2007 a member could also make a nomination if they wished for any remaining alternatively secured pension fund to be paid on their death as a transfer lump sum death benefit (although failure to do this will not mean such a payment cannot be made). However the resulting transfer lump sum death benefit could only be paid as an authorised lump sum death benefit if the member died before 6 April 2007.

If there is a dependant when the member dies the remaining funds must be used to give that dependant a pension death benefit. But the member can still nominate in advance that if a dependant becomes entitled to a dependants’ alternatively secured pension,

• any remaining funds left on that dependant’s death are to be paid as a charity lump sum death benefit or, providing the dependant died before 6 April 2007, a transfer lump sum death benefit, and
• which charity or scheme member(s) should benefit from the payment on the dependant's death.

The member can make a number of nominations, or set a payment order depending on the circumstances on their death, e.g. if the nominated beneficiary is not alive when the member dies specify how they want the remaining funds to be distributed.