There are two benefits that may be available if you have a preserved award: A lump sum, usually paid to your nominee(s) and pensions for your eligible dependants.
Who can get the lump sum payment?
The payment will normally be made to the person, people, or organisation, you have nominated, but it is paid at the discretion of the Scheme Manager.
How much is the lump sum?
The total lump sum will be five times your annual pension at your date of death, taking into account any adjustments based on prices.
Who can get a dependant’s pension?
There are two types of dependant’s pension:
An adult dependant’s pension.
A child’s pension.
How much is an adult dependants’ pension?
The pension that your dependant will get is equal to 37.5% of the pension that you would have received. If you were buying added pension that included benefits for your dependants, they will also get 37.5% of the added pension you would have received. If the added pension you bought was for yourself only it will not be included when working out any of the death benefits for your dependants.
Are there any reasons why the adult dependant’s pension would not be this much?
If your spouse, civil partner, or partner is more than 12 years younger than you, the pension they get will be reduced.
How much is a child’s pension?
There are a few things that can change the amount that gets paid as a pension. These include the number of children who will be receiving a pension, and whether or not there is an adult dependant’s pension to be paid.
How much is a child’s pension:
if there is an adult dependant’s pension? When there are one or two children, each child will get a pension equal to 30% of your pension. If there are more than two children, the total of their pensions will be equal to 60% of your pension, with each of the eligible children receiving an equal share.
if there is no adult dependant’s pension?
When there are one or two children, each child will get a pension equal to 50% of your pension. If there are more than two children, the total of their pensions will be equal to 100% of your pension, with each of the eligible children receiving an equal share.
Death with a preserved pension and the Principal Civil Service Pension Scheme (PCSPS)
This section only applies to members who were in the PCSPS (classic, classic plus, premium, or nuvos) before 01 April 2015, and then moved from that scheme into alpha.
It does not cover every aspect of the scheme; full details are set out in the scheme rules, which are the legal basis of the scheme. You can find copies of the PCSPS scheme rules on the Civil Service Pensions website.
Nothing in this guide can override the scheme rules. Every effort has been made to make this guide as accurate as possible, but in the event of any difference, the rules will apply. This guide is based on the rules current at the time of publication and there is no guarantee that any part of the rules will not change in the future. You should be aware that tax rates and limits are subject to change.
If this section applies to you, please read it carefully to understand what happens to both parts of your pension if you die with a preserved pension.
Your eligible dependants will be entitled to benefits from both your preserved alpha and preserved PCSPS benefits.
Is there a PCSPS lump sum?
Yes. A lump sum may be payable from the PCSPS part of your pension, worked out using the rules for that scheme.
Pensions and lump sums you have already received will affect the amount of lump sum that can be paid.
Is there a PCSPS pension for my dependants?
Yes. Your eligible dependants will get the pensions from the PCSPS part of your pension, worked out using the rules for that scheme.