LOCAL GOVERNMENT PENSION SCHEME DEATH GRANTS

Transcription

1 LOCAL GOVERNMENT PENSION SCHEME DEATH GRANTS The Local Government Pension Scheme (LGPS) provides for a death grant in certain circumstances, namely: When a member dies in service When a member entitled to a preserved benefit dies When a pensioner dies in retirement: a) For those members who left prior to 1 st April 2008 and die within the first five years of retirement. b) For those members who left after 1 st April 2008 and die under the age of 75 within first 10 years of retirement. It is the responsibility of Hertfordshire County Council, as the Administering Authority, to determine who any death grant is paid to. In order that the County Council can take into account your wishes, you are invited to nominate the person(s) or organisations(s) you wish any death grant to be paid to. Please read the notes below and overleaf and complete the attached form to inform the County Council of your wishes. NOTES ON NOMINATION FOR DEATH GRANTS When is a death grant payable? In the event of death in service a lump sum death grant will be payable. Death grants may also be payable after retirement or when deferred benefits have been taken. Details of how death grants are calculated are provided in the Local Government Pension Scheme Booklet. This is available from LPFA on request. The advantages of making a nomination The advantages of nominating a beneficiary to receive the lump sum death benefit are: The payment can be made to the nominee(s) quickly, without having to wait for the estate to be settled and distributed In most cases, the death grant will not be subject to Inheritance Tax (whereas death grants paid to your estate may be). Page 1 of 5

2 Who can be nominated? Nominated beneficiaries can be any individuals or organisations (e.g. charities). If more than one beneficiary is nominated, you should indicate the proportion of the death grant which each is to receive. Please ensure that the sum of the proportions is 100%. If you wish you can give further details of who you would like your death grant to be paid to in the event of your initial nominee(s) not being alive when the death grant becomes payable. Who will the death grant be paid to? The County Council will usually pay the death grant to those people or charities etc. that you have requested be paid. If a nominated beneficiary has died, the County Council will normally pay the part of the death grant that you asked to be paid to them, to be paid to your estate instead (unless the circumstance is covered by the terms of your nomination). If no form indicating your wishes has been received, the death grant will paid to your estate. Revising or revoking your nomination If your circumstances change eg. Marriage, divorce, birth of a child or death of a nominated person, you should consider whether or not you want to change your nominated beneficiaries or revoke your previous nomination. To revise a previous nomination you should complete a new form (available from LPFA at the address below). To revoke a previous nomination, please do so in writing, again addressed to LPFA. Members with more than one employment or benefit If you have more than one pensionable employment, or deferred benefit, or pension the County Council will assume that you wish all death grants to be payable in the same way unless otherwise indicated. Members with Scheme Additional Voluntary Contributions (SAVCs) Any benefits, other than a spouse s annuity will be paid out in the same way as the main scheme benefits. Nominating Minors If you nominated a minor (that is someone under the age of 18), you may wish to consider further arrangements:- establishing a trust, opening a bank account etc. to help ensure that the payment proceeds smoothly. Contact Address The attached form should be returned to LPFA, Hertfordshire County Council, Post Point CHO 033, County Hall, Pegs Lane, Hertford, Herts SG13 8DQ. All forms or revisions will be acknowledged. If you do not receive an acknowledgement within one month of returning a form, please contact LPFA. Page 2 of 5

3 LOCAL GOVERNMENT PENSION SCHEME NOMINATION FOR DEATH GRANTS Please write in block capitals Part 1 To: Hertfordshire County Council From: Title (e.g. Mr. Mrs. Etc.) Forenames: Date of Birth: Acknowledgement Address (If you don t have access to a computer, please provide your home address: National Insurance Number: Employer: Department: Location: Please turnover and give the details of the person(s) or organisation(s) you wish to nominate as beneficiaries. You can nominate more than one beneficiary and if you wish to do so, please specify how you would like any death grant to be divided. Please indicate the proportions and make sure they add up to 100%. This form can accommodate two nominees but if you wish to nominate more than two please use a separate sheet, which must be signed and dated. You may also specify alternative arrangements should one or more of your nominees die before payment is made. For example, you may wish to initially nominate your spouse but add that in the event of your spouse not being alive when your death grant becomes payable, your children are the beneficiaries. It is very important that you sign and date the form in Part 4 before returning it. Please note that we will only acknowledge receipt of your form by , unless notified otherwise. Page 3 of 5

4 NOMINATION FOR DEATH GRANT Part 2 I, (name), wish any death grant to be paid to: Part 3 First Nominee: Title: Forenames: Date of Birth: Or Organisation: Relationship: % (Please note the First & Second Nominee proportions combined must add up to 100%) Alternatives(s) should First Nominee have died when death grant becomes payable Title: (e.g. Mr, Mrs etc.) Forenames: Title: (e.g. Mr, Mrs etc.) Forenames: Date of Birth: Relationship: Date of Birth: _ Relationship: _ THESE TWO FIGURES MUST TOTAL 100% Page 4 of 5

5 Part 3 Cont. Second Nominee: Title: Forenames: Date of Birth: Or Organisation: Relationship: % (Please note the First & Second Nominee proportions combined must add up to 100%) Alternatives(s) should Second Nominee have died when death grant becomes payable Title: (e.g. Mr, Mrs etc.) Forenames: Title: (e.g. Mr, Mrs etc.) Forenames: Date of Birth: Relationship: Date of Birth: _ Relationship: _ THESE TWO FIGURES MUST TOTAL 100% If you wish to nominate further beneficiaries, please continue on a separate sheet, which must be signed and dated. Part 4 Signature: Date: Please note that this must be signed to make your Nomination Form valid Page 5 of 5