After You Die

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After You Die

Benefits Payable on Your Death

Your beneficiaries may be eligible to receive a pension and/or a lump sum from the Scheme when you die. It is important that you complete and keep your Expression of Wish Form up to date to help the Trustee understand who you would like to receive benefits after your death.

Death in Service

If you die in service before Normal Retirement Date, the following benefits are payable:

Lump Sum Benefit

For members on the 2017 Benefit Scale, a lump sum equal to the greater of three times your Earnings in the last complete Scheme Year prior to death or three times your graded rate of wages at the date of death based on a 52 week year.

For members on the Basic Benefit Scale, a lump sum equal to the greater of twice your Earnings in the last complete Scheme year prior to death or twice your graded rate of wages at the date of death based on a 52 week year.

To qualify for the lump sum death benefit you must be a contributing member at the time of death. For this purpose, you will still be treated as a contributing member if:

a Scheme employer terminated your employment contract no more than 8 weeks before your death and you did not find another job during that period;
you were absent from work due to sickness or injury but still receiving pay and were contributing to the Scheme; or
you were absent from work due to sickness or injury without pay for not more than 104 continuous weeks before your death and your employment contract with your Scheme employer had not been terminated. This period of 104 weeks shall apply from the date on which regular and systematic contributions to the Scheme cease and not from the date from which you are first absent from work.

The Trustee has discretion to decide which of your beneficiaries should receive the lump sum. Please ensure that you have completed and returned a copy of the confidential Expression of Wish Form.

Pension for Spouse, Civil Partner or Dependant

For any period where members build up benefits on the 2017 Benefit Scale, no spouse’s, dependant’s or civil partner’s pensions are payable following death in service.

For members on the Basic Benefit Scale, if you die leaving a surviving spouse or civil partner he or she will receive a pension equal to 50% of the pension you would have received if you had reached Normal Retirement Date on the day immediately before the date of your death. This pension will be made up to at least £22 per month for a period of 5 years if you have been contributing to the Scheme throughout the 26 weeks immediately before the date of your death. This pension will cease on the death of your spouse or civil partner. If your spouse or civil partner is more than 10 years younger than you, the pension will be reduced. If you do not leave a spouse or civil partner on your death or if you are unmarried at date of death a pension equal to the amount which would have been payable to a spouse or civil partner may be paid to any person who was financially dependant on you.

Children’s Benefits

For any period where members build up benefits on 2017 Benefit Scale, no children’s pensions are payable following death in service.

For members on the Basic Benefit Scale, if you are a contributing member, a children’s pension equal to 1% per annum of the lump sum death benefit of an Advanced Plumber (Basic Scale) will be made in respect of each of your children (up to a maximum of 4) until he or she reaches 18 years of age. If your spouse or civil partner who is receiving a pension under the Scheme dies leaving one or more children under 18 years of age, the total children’s pension will be increased to the amount of the spouse’s pension at the date of death.

If you die in service after Normal Retirement Date

Lump sum benefit

A lump sum benefit may be payable. The lump sum will be calculated as described under Death in Service before Normal Retirement Date.

If you have reached Normal Retirement Date and were in service on 1st December 2006, the lump sum benefit will not be lower than the sum of the maximum retirement lump sum that you could have taken if you retired just before your death plus 5 years’ payment of the pension you would have been paid if you had retired just before your death and survived for 5 years after retiring. This 5 years’ pension will not include any increases and will also be reduced for early payment.

Pension for Spouse or Civil Partner

For any period where members build up benefits on the 2017 Benefit Scale, no spouse’s, civil partner’s, dependant’s or children’s pensions are payable following death in service after Normal Retirement Date.

For members on the Basic Benefit Scale, if you die while in service on or after Normal Retirement Date leaving a surviving spouse or civil partner, he or she will receive a pension equal to 50% of the pension you would have received if you had retired immediately before your death without converting part of your pension for a retirement lump sum. Generally, this pension will be made up to at least £22 per month for 5 years or such amount as the Association, the Federation and the Union decide, if you have been contributing to the Scheme throughout the 26 weeks immediately before the date of your death. Any children’s pensions will be calculated as described above under Death in Service before Normal Retirement Date

Death in Deferment

If you keep your pension in the Scheme when you stop contributing but you die before you start to draw it, a lump sum benefit will be payable equal to the total of your contributions to the Scheme together with interest.

For any period where members build up benefits on the 2017 Benefit Scale, no spouse’s, civil partner’s or dependant’s pensions are payable following death in deferment.

For members on the Basic Benefit Scale, a spouse’s, civil partner’s or dependant’s pension equal to 50% of the total of your preserved pension at the time of your death will also be paid.

Death After Retirement

For any period where members build up benefits on the 2017 Benefit Scale, no spouses, civil partner’s or dependant’s pension are payable following death after retirement.

For members on the Basic Benefit Scale who retired before 6th April 1999, on death after retirement your spouse will receive a pension equal to 50% of your pension in payment at the date of your death. If you retired after 5th April 1999, your spouse or civil partner would receive a pension of 50% of the pension to which you would have been entitled at the date of your death if you had not converted any of your pension into a lump sum. If your spouse or civil partner who is receiving a pension under the Scheme dies leaving one or more children under 18 years of age, a children’s pension will be payable up to the amount of the spouse’s pension at date of death.

If you die within 5 years of your retirement a lump sum will be payable equal to the value of the pension payments which would have been paid during the balance of the 5 year period, reduced to take account of early payment and disregarding any future pension increase.

Conditions similar to those set out for Death in Service before Normal Retirement Date apply in respect of dependant’s benefits and in respect of a spouse or civil partner who is more than 10 years younger than you.