How much death grant may be payable?
Active Members
If you are employed and paying into the LGPS with SYPA when you die, the amount of death grant is 3 times your salary.
Deferred Members
If you have deferred benefits and left
- Before 1st April 2008 – Your death grant should be 3 times your annual pension that would be due.
- On or after 1st April 2008 – Your death grant should be 5 times your annual pension that would be due.
Pensioner Members
If you are already receiving your pension from us, we would usually pay a death grant as long as one of the following applies:
- You left on or after 1st April 2014 and have been in receipt of your pension for less than 10 years – in this case the death grant should be 10 times your annual pension, less any pension and lump sum that has already been paid.
- You left the scheme between 1st April 2008 and 31st March 2014 and have been in receipt of your pension for less than 10 years – in this case the death grant should be 10 times your annual pension, less any pension and lump sum that has already been paid.
- You left the scheme before 1st April 2008 and have been in receipt of your pension for less than 5 years – in this case the death grant should be 5 times your annual pension, less any pension and lump sum that has already been paid.
If you left the scheme prior to 1st April 1998, then additional checks will be done to see if a death grant is payable.
There is usually no death grant payable once a member reaches age 75
If you are paying into the LGPS in another job or LGPS fund, any death grant due would be either the death in service grant, or the death grant from your deferred pension (or multiple deferred pensions). Whichever is more.
Who will get the Lump Sum Death Grant when I die?
South Yorkshire Pensions Authority (SYPA) has absolute discretion on who will get any Lump Sum Death Grant, as long the payment is made within 2 years of SYPA being made aware of the death. SYPA can decide to pay the death grant to one or more of the following:
- The person(s) or bodies that have been named on an expression of wish form and/or
- The personal representatives and/or
- Any person who appears, at any time, to have been a relative or dependant.
What is an expression of wish?
This is an important document because it tells us who you want to receive any monies when you die. Even though SYPA will not be legally bound by the expression of wish, the member’s wishes will be taken into account unless there are legitimate reasons not to.
What if there is a Will?
An expression of wish form can, and should, still be completed. SYPA will request to see the Will to help make a decision on who will receive the death grant. This helps the fund to build a picture of the best course of action to follow.
Does the Lump Sum Death Grant form part of the estate?
In most cases, no. As long as the Lump Sum Death Grant is paid to a named person (s) within 2 years of SYPA being told of the death, the Lump Sum Death Grant does not form part of the estate.
But,
If the Lump Sum Death Grant is paid more than 2 years after being told of the death, SYPA can no longer decide who will get the grant. When this happens, it must be paid to the legal personal representative and will be subject to the appropriate tax deduction. The current rate of tax is 45%.
I need help completing forms for HMRC, can you help?
If you are completing an HMRC inheritance tax form regarding the Lump Sum benefit and have further queries,
please visit the
HMRC website
