RPSM10303040 - Scheme Administrator Pages Death benefits: Payment of lump sums: Member dies aged 75 or over. Dependant nominates payment of a charity or transfer lump sum death benefit

This guidance only covers deaths up to 5 April 2011. If the member died on or after 6 April 2011 see RPSM10106000.

Dependant nominates payment of a charity or transfer lump sum death benefit

If there is a dependant when the member dies on or after age 75 the remaining funds in the deceased member’s alternatively secured pension fund 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 dependants’ death are

• paid as a charity lump sum death benefit or where the dependant died before 6 April 2007 a transfer lump sum death benefit, and
• nominate the charity or scheme member(s) who should benefit from the payment.

Where the member does not make a nomination the dependant can nominate what happens to any remaining dependants’ alternatively secured pension on their death. They can choose whether a charity lump sum death benefit or whether, if the dependant died before 6 April 2007, a transfer lump death benefit should be paid if there is no other surviving dependant of the member. A dependant cannot override a member’s nomination.

If in these circumstances the member’s nomination subsequently becomes void, for example because the only nominee dies, or the charity the member nominated no longer exists, any surviving dependant may make the nomination in respect of their own dependants’ alternatively secured pension fund.