| On the death of a member of an occupational | | | | the age of 18 or end of higher education, a mentally |
| pension scheme before 'A' Day, benefits with the | | | | or physically handicapped child, an ex-spouse to |
| maximum limits of HMRC could be paid to the spouse | | | | whom maintenance payment used to be made, and |
| and/or dependants of the deceased. Benefits could | | | | anyone such as a common law spouse who was |
| be in the form of a cash lump sum or a pension. This | | | | dependant or financially co-dependant. |
| was the case whether death took place within | | | | If the member died after retirement, benefits could |
| service or after retirement. The benefits were either | | | | be paid to the spouse and/or dependant, within |
| paid directly from the fund or through an employer's | | | | HMRC maximum limits. The nature of the benefits |
| contribution to an insured arrangement to cater for | | | | paid was based on the kind of annuity that was |
| death benefits. | | | | purchased at the commencement of retirement. If a |
| If death occurred before retirement, the maximum | | | | guaranteed annuity was chosen, the pension |
| lump sum that could be paid to the spouse and/or | | | | instalments would continue to be paid to the spouse |
| dependants of the deceased was kept at a | | | | and/or dependants up to end of the guaranteed |
| maximum of four times the final renumeration. | | | | period, which was usually a maximum of ten years. A |
| Retained lump sum benefits in previous schemes had | | | | cash lump sum could be paid instead if the annuity |
| to be taken into account, however. It was allowed to | | | | was guaranteed for five years or less. The amount |
| opt for a lump sum of £5,000 if it was higher. | | | | paid will be equivalent to the pension instalments for |
| This nevertheless was rarely the choice, unless the | | | | the rest of the guaranteed term. In the absence of a |
| salary under consideration was very small. An | | | | guarantee element, the annuity could continued to be |
| alternative option was a maximum limit of two times | | | | paid to a spouse and or/dependants, within HMRC |
| the final renumeration, without considering retained | | | | limits. |
| benefits. | | | | All was not lost when an occupational scheme |
| Pension income could also be paid to the spouse and | | | | member died before 'A' Day. Death benefits could be |
| or dependants of a member who died in service, but | | | | the lot of the spouse and dependants. The rules that |
| had to be within HMRC maximum limits. HMRC | | | | governed the limits of these benefits do not apply |
| definition of dependants included, a legal spouse or | | | | any more though, as they have been replaced by a |
| civil partner, a child, adopted child, or step-child up to | | | | simplified tax regime. |