Answer:
The in-service death grant is the payment made in the event you die while still in-service, i.e. an active member paying contributions to the Scheme. Remember, if you enter a period of non-pensionable sick leave (because you receive less than half your usual pay) you’re no longer in active pensionable service. An in-service death grant may still be payable if you die within 12 months of leaving pensionable service as a result of being incapacitated.
If you’ve left service and attained normal pension age, but haven’t claimed retirement benefits before you die, the benefits you would have been entitled to will be paid instead of a death grant. The benefits will be payable to your estate.
How much is the in-service death grant?
The in-service death grant is three times your annual rate of pensionable earnings when you die or leave service (if applicable). If you’re employed on a part-time or irregular basis this is assessed as if you were full-time. If you die while in Additional Service After Retirement (ASAR) any previous lump sum benefit payment will be deducted from the grant.
The in-service death grant is payable during periods of family leave covered by part-salary and / or statutory benefits, or a period of non-pensionable family leave that follows immediately on from a period of pensionable service. It’s also payable during: periods of absence due to illness as long as you’re receiving at least half pay; you were an active member called up for duty in Her Majesty's armed forces and made an election to treat the period as pensionable service; or you die within 12 months of leaving all pensionable employment due to incapacity; (and a retirement pension other than a Phased Retirement pension hasn't become payable in relation to that service prior to your death).
If you don’t qualify for an in-service death grant an out-of-service death grant may be payable, which is based on three x your pension in the final salary scheme and 2.25 times the value of your annual pension in the career average scheme, had you been eligible to receive it.
If you or your estate have not received five years of your pension, we’ll pay a supplementary death grant. The supplementary death grant is five times the annual rate of retirement pension payable at the date of death less any pension already paid.
Please ensure you review your nomination regularly to ensure it reflects your wishes.
To be extra confident and reassured you might like to make a new death grant nomination via My Pension Online (This link opens in a new window).