Leaving OSPS

What benefits are payable if I die in service before Normal Retirement Date?

If you die before Normal Retirement Date and you were an Active Member at the time of your death, the following will be payable:

• A lump sum of an amount equal to the greater of:

4 x your annual Pensionable Salary at death

or

3/80th x Final Pensionable Salary x Pensionable Service

If you work part-time, the Pensionable Salary used to calculate the lump sum is your actual part-time salary.

• A dependant's pension:

Your dependant will receive the monthly Pensionable Salary you were receiving at the time of your death for the first three months and then a pension of:

1/120th x Final Pensionable Salary x Pensionable Service

Pensionable Service will include the service that you could have completed had you remained an Active Member of OSPS up to Normal Retirement Date.

plus

• A child's allowance, if you leave a child who

• is below age 17;
• is undergoing full-time education or vocational training and is below age 23; or
• is unable to be self-supporting because of some mental or physical disability.

No more than three of your children can receive a child's allowance at any one time. The amount payable to each child depends upon the number of children who are eligible and whether or not a pension is currently being paid to a Dependant.

What benefits are payable if I die in service after Normal Retirement Date?

Broadly speaking, you will receive the same benefits as if you had died in service before Normal Retirement Date. As a general rule, the lump sum will usually be:

4 x Pensionable Salary at the date of your death (if you are still paying contributions to OSPS)

or

4 x Pensionable Salary at Normal Retirement Date (if you stopped paying contributions at your Normal Retirement Date).

If you work part-time, the Pensionable Salary used to calculate the lump sum is your actual part-time salary.

What benefits are payable if I die after I have retired and my pension has started?

The following benefits will be payable:

• A lump sum equal to the Five Year Guarantee

plus

• A dependant's pension:

Your dependant will receive the pension you were receiving at the time of your death for the first three months. After this, they will receive a pension of 2/3rds of your revalued standard scheme pension, even if you chose a different option when you retired

plus

• A child's allowance, which will be paid and determined in a similar way to that described in the first scenario above, except that the allowance is based on the revalued standard scheme pension, even if you chose a different option when you retired.

What benefits will be payable if I die before Normal Retirement Date while receiving a pension because I retired on the grounds of ill health?

The following benefits will be payable:

• A lump sum of an amount equal to the greater of the Five Year Guarantee

or

• 4 x your Pensionable Salary at retirement, less the lump sum you received at retirement, less all instalments of pension paid since your retirement.

A dependant's pension:

Your dependant will receive the pension you were receiving at the time of your death for the first three months. After this, they will receive a pension of 2/3rds of your revalued standard scheme pension, even if you chose a different option when you retired

plus

A child's allowance, which will be paid and determined in a similar way to that described in the first scenario above, except that the allowance is based on the revalued standard scheme pension, even if you chose a different option when you retired.

What happens if I have preserved benefits and die before claiming them?

If you die before payment of your deferred pension commences, a Dependent's pension equal to two-thirds of your deferred pension and Children's allowances may be payable. The current value of your deferred lump sum will also be payable.

Who will receive the cash sum payable on my death?

This lump sum will normally be paid to your nominated beneficiary or beneficiaries, although the Trustees are not legally bound by this.

It is very important that you keep your nomination form  up to date if your circumstances change.

It is particularly important for members with no obvious dependant (spouse or children) to complete a nomination form. These are often the cases  the Trustees find most difficult to resolve. As a general rule, in the absence of a nomination form, the Trustees will be guided by your will and the intestacy laws. However sometimes these are of little help if you have no close relatives. Hence the importance of a nomination form.

Is there a time limit for the payment of the cash sum?

For members who died after 6 April 2006, the Trustees cannot pay out a lump sum more than two years after the date they are notified of the death. For members who died before 6 April 2006, the time limit is 2 years after the date of death, hence no lump sum is now due if this is case.

Who receives the dependant's pension?

This pension is normally paid to your lawful spouse or civil partner. However, the pension may, at the discretion of the Trustees, be paid to somebody else (irrespective of gender) who was financially dependent or inter-dependent with you, and who was living with you in a relationship closely resembling marriage.

It may also be paid to an individual who the Trustees are of the opinion was wholly or partially financially dependant upon you at the date of your death. The Trustees will consider, but are not bound to follow, any nomination that you make as to the person you wish the Trustees to treat as your Dependant. You can nominate your dependants on  Registration of potential dependants (NOM3) form (22kb).

If you are not survived by a spouse or civil partner, the Trustees may decide that no Dependant's pension shall be payable or that a reduced pension will be payable.

Will the pension payable to a dependant be reduced if he or she is younger than me?

If the dependant is more than 15 years younger the pension would be reduced, but the Trustees have the power in certain circumstances to reduce or waive this reduction. This provision does not apply to children's allowances.

Who should I notify of the death of an OSPS member?

If the OSPS member is an active member of the scheme, you should contact their employer, who will in turn notify the Pensions Office. You could contact the Pensions Office (OSPS) in addition if you wish.

If the OSPS member is in receipt of an OSPS pension or has deferred benefits, please contact the Pensions Office (OSPS) by email or by telephone 01865 616020.

If you are the spouse or dependant of a deceased member and have welfare needs or difficulties,  please contact the Pensioners' Welfare Officer on 01865 616203.