Death benefits

The benefits payable on your death depend on whether you are:

  • A former member with deferred benefits.
  • A pensioner; or
  • A pensioner who retired early due to ill health or disability;
Deferred pensioner

A former member with deferred benefits

If you should die before normal retirement age while a deferred pensioner, the following benefits may be payable:

  • A spouses or dependants pension based on your deferred pension plus any other increases awarded
  • In certain circumstances, as explained at time of leaving, a lump sum death benefit may also be payable.

Please refer to the letter you received with details of your deferred pension and death benefits.

Death as a pensioner

On your death in retirement, the following benefits are payable:

  • If you die within five years of your retirement, a cash sum equal to the monthly pension payments that would have been made to you during the balance of the five year period (at the rate payable immediately before your death, making no allowance for pension increases). 
  • A spouse's or dependant's pension of 50% of the pension you were due at retirement (ignoring any reduction made at retirement for exchanging part of your pension for a cash sum) plus any increases awarded since retirement. 
  • Children's pensions will also be paid for up to two children while they are under age 18 (or 23 if in full time education or vocational training). Each pension is equal to 50% of the spouse's or dependant's pension. The pension will be doubled if no spouse's or dependant's pension is payable. 
Death after early retirement due to ill health

On death before normal retirement age while in receipt of an ill health early retirement pension, the following cash sum will be payable instead of the cash sum described under 'death as a pensioner' above.

The cash sum paid will be four times your death benefit pay at the time of your ill health early retirement which will be increased by the greater of:

  • The cumulative increases applied to pensions in payment each year since your early retirement; and
  • Cumulative increases of 3% each year.

From this, the amount of any cash sum taken on ill health early retirement in exchange for pension will be deducted.

The same spouse's or dependant's and children's pensions would be paid as described under 'death as a pensioner' above.