For most people, the main draw of the NHS pension scheme is the pension. But the benefits that come with the scheme are not to be forgotten. Valuable benefits are provided to spouses, civil partners, partners, and dependent children in the event of the death of an NHS pension scheme member.
This does not constitute advice and advice should be sought in all instances before acting on it.
The cost of the superannuation scheme for all scheme members covers the cost of the lump sum and pension benefits, but they vary slightly depending on which scheme you are a member of.
Who’s eligible to receive your benefits?
Certain eligibility requirements need to be met for your next of kin to qualify for your NHS Pension entitlement.
- First of all, you need to be married, in a registered civil partnership, or with a qualifying partner.
- If your relationship doesn’t fit into one of these categories, like long-term live-in partners, nominations will be required.
- If you are single and have no dependents, you can nominate someone else to receive your benefits.
Failure to complete a nomination could result in the payment going to your estate which would be subject to IHT. You’ll also need to have been a member of the NHS Pension Scheme for a minimum of two years and meet other certain criteria – speak to your financial adviser to understand eligibility criteria.
- Payment of a lump sum – Essentially, the lump sum is about twice your pensionable pay, but the income figure used to calculate this number differs slightly between the 1995, 2008 and 2015 schemes.
- Dependent’s pension – Six months after your death, your widow, widower, civil partner or nominated partner will receive 50% of your accrued NHS pension in the 1995 scheme, 37.55% in the 2008 scheme, and 33.75% in the 2015 scheme, for the rest of their life.
- Children’s pension – Again, how much is paid out varies based on which scheme you’re a member of, but it is paid until age 23, with some exceptions. Additionally, it’s limited to 2 children at any one time.
- Per child – For the 1996 scheme, it’s the equivalent to 25% of the member’s accrued Tier 2 Ill Health Retirement pension benefit at the time of death, 18.75% for each child in the 2008 section, and 16.875% in the 2015 section.
Professional pension help
If you need assistance figuring out the pension plan benefits available to your family or are interested in supplementing with your own wealth protection policies, get in touch today.
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