RPSM10105120 - Technical Pages: Death benefits: Lump sums pre 6 April 2011: Member dies aged under 75: Amount of defined benefits lump sum death benefit

The amount of defined benefits lump sum death benefit that may be paid

There is no limit on the amount of defined benefits lump sum death benefit that can be paid from a scheme. A registered pension scheme may promise to pay a set amount of money on death or a lump sum death benefit linked to the salary of the member, or by some other measure. It is entirely a matter for the scheme to decide.

The payment of a defined benefits lump sum death benefit triggers a lifetime allowance test through BCE 7, with the amount crystallising being the amount actually paid.