Benefits if you Die

Benefits if you Die

What happens if I die while working for my employer?

If you die whilst an active member of the Carillion Pension Plan, and you still work for your Employer, the Plan will normally pay a cash lump sum of four times your basic salary, if you are a full member at the date of your death and were coverd for life assurance on joining the Plan.

The balance of your Account will normally be paid as an additional lump sum.

Former Carillion 2009 Pension Plan Members only

If you die whilst an active member of the plan, and you still work for your employer, the plan will normally pay:

A prescribed cash lump sum (your 'choices' guide provides further details about this benefit).

The balance of your Account will normally be paid as an additional lump sum.

 

Cash lump sum death benefits are normally free of tax as long as the total benefits are within your Lifetime Allowance. Your Executors or Legal Personal Representatives are liable to account for and pay any tax due to HMRC if your benefits exceed the Lifetime Allowance.

You can tell the Trustee who you would like to receive the lump sum by filling in a Statement of Wish form. You can nominate relatives, friends, clubs, societies or charities to receive the money.

The Trustee though has the final say over who receives the cash lump sum. There are two advantages to this:

  • it is likely to prevent long delays in settling the estate; and
  • it means that under current rules, the money can be paid free of income tax and inheritance tax.

You can obtain a new copy of the Statement of Wishes from the Plan Administrator, if your circumstances change and you wish to change your existing nomination(s). 

What happens if I die after leaving my employer but before taking any of my pension savings under the Plan?

If you die after leaving the Plan and before withdrawing your pension savings, the full value of your Account is normally paid as a lump sum benefit. Any lump sum death benefits paid out on the death of a member before reaching age 75 will normally be free of income and inheritance tax, as long as they are within the member's Lifetime Allowance and paid within two years of the date of death.

After age 75, if you still haven't taken your benefits, the tax charge will depend upon whether the payment is made to a nominated individual or to someone appointed to act on your behalf e.g. your legal personal represetatives. Further details are available from the Plan administrators.

Life assurance ceases on leaving employment and/or membership of the Plan.

What happens if I die after taking my pension savings out of the Plan?

Any benefits paid on death after you have withdrawn your pensions savings under the Plan will depend on how you have set up any new arrangements and the tax laws in place at the time. Your provider will be able to confirm the arrangements you have in place.

 

Control Version: 20 January 2017