Lump sum nominations &
pensions for dependants
SE
201PT
4
online factsheet P13 version14
GREATER MANCHESTER
PENSION FUND
Introduction
From the moment you join, right up to the time you retire, and
even beyond, you have valuable life cover as a member of the Local
Government Pension Scheme (LGPS for short). This can include a
one off lump sum payment, and also pensions for your loved ones.
So we have put this factsheet together to give you an introduction
to these various benefits, and details of who we can pay them to.
And in the case of the lump sum life
cover, there’s a form you can fill in if
you like, to let us know your wishes.
You don’t have to fill in the form,
but if you do, it will give us a better
understanding of your wishes if you die.
Page 1
Lump sum life cover
The
amount
lump
life cover
you
have depends
on which
typeyou
of member
youdie...
are when
The amount
of of
lump
sumsum
life cover
you have
depends
on which class
of member
are when you
you die...
Before you retire
If you die in service, and you are only a member of the
LGPS with us, we will pay out a lump sum of three times
your assumed pay. So for example, if you’ve been on
reduced pay on long term sick, assumed pay is the pay you
would have normally been on.
If you have deferred benefits
If you have left ‘benefits on hold’ in the LGPS these are
known as deferred benefits. If you only have deferred
benefits with us, we will pay the following lump sum if you
die:
l If you left 1 April 2008 onwards: five times your
deferred pension
l If you left 1 April 2008 onwards: the lump sum will
be ten times your pension less any pension already paid
and the amount of retirement tax-free lump sum you
chose to take
l If you left between 1 April 1998 and 31 March 2008:
the lump sum will be five times your pension less any
We
pension already paid.
can’t
a lum pay
p
Warning: if you have multiple memberships if you ar sum
when e 75+
there may only be one lump sum life cover
you
payment. Here are some examples...
die.
You pay into the LGPS for 2 jobs,
Two lump sums
either with ourselves or a different
local authority fund
You pay into LGPS with ourselves
One lump sum
but also have deferred benefits with - whichever is
greatest
ourselves or any LGPS fund from
before 1 April 2014
l If you left before 1 April 2008: three times your
deferred pension.
Once you’ve retired
You pay into LGPS with ourselves
and also started drawing an LGPS
pension before 1 April 2014
If you only draw an LGPS pension from ourselves, and
retired on or after 1 April 1998, we may pay a lump sum
when you die, depending on how long you have been on
pension...
One lump sum
- whichever is
greatest
Making a nomination
The
amount
of lump
sum
cover you
haveindepends
on which
type of member
you are when
It’s possible
to make
a lump
sumlife
nomination,
by filling
It’s easy
to change
your mind
you
die...
the nomination form which is at the back of this factsheet.
You can change your mind at any time by filling in a new
nomination form. This is something you should think about
if your circumstances change, for example someone you’ve
named dies first, or you get divorced. You can also cancel
your nomination at any time simply by writing in, or using
the contact us form on our website (www.gmpf.org.uk).
You can nominate whoever you like - friends, family,
partners, even an organisation such as your favourite
charity. Someone you name is known as a beneficiary.
All we ask is that if you want to name more than one
beneficiary, you spell out what share each should get
(making sure the shares add up to 100%!)
If you pay AVCs
If you prefer, you can ask us to pay the lump sum to your
personal representatives, for them to pay out in line with
the rest of your estate. There is a section on the form for
this.
If you are also paying AVCs for extra lump sum life cover
through our in house arrangement, your nomination will
cover this too. If you are paying AVCs to top up your own
benefits, our policy is:
Do I need to make a nomination?
No you don’t, but please think about it seriously, as it’s the
best way of letting us know your wishes.
or AVCs set up 1 April 2014 onwards: the cash value
lF
will normally be paid in line with your nomination too
lF
or AVCs set up before 1 April 2014: these are paid to
your estate
Page 2
Who will you pay the lump sum life cover to?
Under the Scheme rules the final decision will always rest with us. But we
haveamount
agreed guidelines
to how
wecover
will useyou
thishave
discretion...
The
of lumpassum
life
depends on which type of member you are when
you die...
If you do nominate
We will always give great weight to your nomination,
and will generally follow it unless this isn’t possible, or
we feel there are exceptional circumstances.
An example of when we can’t follow your nomination
is if a beneficiary has died, or we can’t trace them
within two years. Also we may choose not to follow
your nomination if your circumstances have changed,
for example you had nominated a spouse or partner,
but you have now separated.
If you don’t nominate, or we don’t
follow your nomination
If you don’t nominate, or we don’t follow your
nomination, we will normally pay the lump sum to your
spouse, civil partner, or eligible cohabiting partner.
And if you don’t leave any of these dependants, to your
children if you have any.
If you don’t leave any of the above,
we will normally pay it to your
personal representatives.
The lump
sum is normally
free from
inheritance tax
And there will always be a short delay to allow for
any claims from family or dependants who wouldn’t
benefit if we followed your nomination. But they
would have to put forward a good case for us to pay
them instead.
How to make a nomination
The
Step 1
Fill in your details on the form.
Tips for getting it right first time
l Use black ink & UPPER CASE so your form is clear.
amount of lump sum life cover you have
depends on which
ofon
member
are when l If you make a mistake, don’t cross it out! Instead ask
There type
is space
the back,you
in case
Step
2
for a new form or we will reject it.
you die...
you want to add any extra information
giving weight to your nomination. For
example, you might be divorced from
your spouse, but still want them to
benefit. Or you might have deliberately
nominated a charity, even though you
have a spouse or partner.
Step 3
Step 4
S ign the form and get it witnessed
by someone who is not a beneficiary,
their husband, wife, civil partner, or
cohabiting partner. The witness must
be over 18.
l If you are nominating a child, just put their own
details, rather than parents, guardians, etc.
l You cannot name an alternative in case one of your
beneficiaries dies
l If naming more than one beneficiary, please spell
out the percentage share for each, making sure it
adds up to 100%.
We will treat your nomination confidentially, and
it will be valid as soon as we receive it. We will add
the details to your pension records (which we hold
on computer) and return your original to you.
Check all your details, before returning
your form to us.
Page 3
Pensions for dependants
The let’s
amount
of to
lump
sum
life cover
Now
move on
look at
pensions
for you
have
depends
on
which
type
of
member
dependants. These benefits are totally separate
to
you
are
when
you
die...
the lump sum life cover - they are worked out in a
different way, and can be paid to different people.
With this type of benefit, we have no discretion
- the scheme rules spell out who we should pay
a pension to. This is either your spouse, eligible
cohabiting partner, or your civil partner, plus any
dependent children...
Spouse - this means someone you are married to.
Eligible cohabiting partner - this means someone you
are living with - see later for terms & conditions.
Civil partnership - where two people of the same sex have
registered their partnership through a civil ceremony.
Dependent children - normally under 18 - see later for
terms & conditions.
How much pension will my dependants get?
The
amountfor
ofyour
lumpspouse,
sum lifeeligible
cover you
have depends
on which
type
of civil
member
you are when
A
pension
cohabiting
partner,
or same
sex
partner...
you die...
Working out the value of the pension for a dependant if you die in service is not straightforward. But to give
you a rough idea, the pension for your spouse, civil partner or eligible cohabiting partner is 160th of your
pay for the period from the date you joined right up to your normal pension age. In other words:
Years to normal
pension age
x
Current
pay
÷ 160
A pension for dependent children
By a dependent child, we mean your natural child, adopted child, or a step child or child you have accepted into your
family. The child needs to be:
l Under 18,
l Or aged 18 or over, but is under 23 and is in full time education or vocational training, for example an apprenticeship
l Or aged 18 or over but is unable to engage in gainful employment* because of a disability. In the case of a child aged
23 or over, the disability is likely to be permanent and the child was dependent on the member at the date of death
because of that disability.
Gainful employment means paid employment for not less than 30 hours in each week for a period of not less than 12 months.
If you die in service, again we base the value of your children’s pensions on the period from the date you joined right
up to your normal pension age, and your current pay at the point you die. But this time we use one of the following
fractions:
l One child: 320th.
l Two or more children: Equal share of pension based on160th
If we pay children’s pensions but no spouse or partner’s pensions:
l One child: 240th.
l Two or more children: Equal share of pension based on120th
For example, for one child, where there is also a spouse or partner’s pension it would be: For example, for
one child, where there is also a spouse or partner’s pension it would be:
Years to normal
pension age
x
Current
pay
÷ 320
Page 4
Please see
important
notes
on
page 5
More about dependants’ pensions
Normal pension age
As explained, in many cases benefit enhancements are
based on the years you would have built up to your normal
pension age. This is 65, or your State pension age if later.
l Where a man marries a woman after he leaves, we will
base the widow’s pension on his membership from 5
April 1978.
Deferred members
l If you left before 1 April 2014, and form a same sex civil
partnership after this date, your civil partner’s pension
will be based on all your membership.
If you no longer pay into GMPF and have deferred benefits,
the dependants’ pensions are only based on the actual
time you had been in the scheme, with no enhancement.
Transfers
Dependent children
We can only pay a pension to a natural child born within
12 months of your death.
Dependants’ pensions generally include a value to reflect
any transfers into the scheme which you have had.
An example of a child accepted into your family would
be where you are bringing up your grandchild, but haven’t
formally adopted him or her. A child you are sponsoring
through a charity is not classed as dependent.
Cohabiting partners
A cohabiting partner is only eligible for a pension if you were
paying into the scheme on or after 1 April 2008, and we can
normally only count membership from 6 April 1988, unless you
have paid extra to make it count.
Once you have left
If you get married, form a cohabiting partnership or form
a same sex civil partnership after you leave then in most
cases the pension for your other half will be based on your
membership from 5 April 1988. But...
Where a child aged 18 or over is dependent because
of a disability, an approved doctor may be asked to
confirm that the child is permanently incapable of gainful
employment.
What do my dependants need to do if I die?
We don’t currently need you to register your dependants’ details with us. But we will naturally need them to provide
certificates or other documents at the point you die...
If you are married or in a in a same sex civil partnership we will need to see a copy of the marriage certificate/civil
partnership certificate.
A cohabiting partner is only eligible for a pension if at the point you die, your partner has met ALL the
following conditions for at least two years continuously:
l You and your partner have lived together as a couple in the same way as a married couple or civil partners would live
together, and
l You and your partner were free to marry or form a civil partnership with each other, and
l Neither you or your partner have been married, in a civil partnership, or living with someone else in the last two years,
and
l Your partner has depended on you financially (in other words, you had the highest income), or you have depended on each
other financially (in other words you relied on your joint finances to support your standard of living).
Your partner will need to provide proof that you meet all these conditions, by showing documents such as
utility bills or joint bank statements.
Dependent children - we will ask to see the full birth certificate showing parents, place of birth etc.
Page 5
Can we help?
Here are the ways you can find out more or get in touch with us.
If you do contact us, please quote your National Insurance number.
Please remember to keep us up to date if you move house...
Visit our website to find out more or to contact us:
www.gmpf.org.uk
Or call our friendly helpline on:
0161 301 7000
Or call in at our offices:F
Guardsman Tony Downes House
5 Manchester Road, Droylsden, M43 6SF
P13
Lump sum
nomination form
Version 14
1. MEMBER DETAILS
Your
name:
Title InitialsSurname
Employer or
former employer:
(for example Bury MBC)
Address:
National Insurance
or Pension number:
Your daytime
phone number:
Postcode:
2. WHO YOU WOULD LIKE TO NOMINATE
If you want your personal representatives to pay out any lump sum
in line with the rest of your estate, tick here:
OR... if you want to name individual beneficiaries yourself, please
fill in the boxes below:
Beneficiary 1
Title:
Percentage share
%
First name(s):
I wish my personal representatives to pay out any
lump sum in line with the rest of my estate
Beneficiary 2
Title:
Surname:
Surname:
Address:
Address:
Postcode:
Postcode:
Date of birth:
DD MMYYYY
Beneficiary 3
Title:
Relationship to you:
Percentage share
First name(s):
DD MMYYYY
Surname:
Surname:
Address:
Address:
Postcode:
Postcode:
Date of birth:
DD MMYYYY
Relationship to you:
Relationship to you:
Beneficiary 4
Title:
%
First name(s):
Date of birth:
%
Percentage share
Percentage share
%
First name(s):
Date of birth:
DD MMYYYY
Relationship to you:
3. DECLARATION
If I die, I wish you to pay any lump sum to whoever I have named
above. However I understand that for legal reasons the Fund has the
discretion to decide who to pay. I also consent to you storing the
information I have given.
Your signature:
DD MMYYYY
Today’s
Date:
4. WITNESSED BY (NOT SOMEONE YOU HAVE NOMINATED OR THEIR SPOUSE, CIVIL PARTNER OR COHABITING PARTNER)
Witness’s
full name:
Address:
Postcode:
Witness’s
signature:
DD MMYYYY
Date
witnessed:
P E N S I O N S O F F I C E S TA M P
5. EXTRA INFORMATION
(only fill in if you want to)
Please return to:
Greater Manchester Pension Fund
Guardsman Tony Downes House
5 Manchester Rd, Droylsden, M43 6SF.