The Pensions Regulator

Paying lump sum death benefits

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Providing lump sum death benefits

In general, the regulator’s view is that:

• where an employee has been offered membership of a pension scheme for pension benefits; or
• where an employee will be offered membership of a pension scheme for pension benefits if they remain with the employer for long enough,

it would be acceptable for that employee to be provided with lump sum death benefits as part of a package of benefits under that scheme.

In such cases the provision of lump sum death benefits can be seen to ancillary and supplemental to the provision of retirement benefits. This is so whether or not the member takes up that offer.

Increase or reduction in benefits
It does not affect our view if such benefits are increased or reduced.

Life assurance cover for retired members
The continuation of life assurance cover (in any form) for retired members would also, in our view, be acceptable.

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