Benefits for dependants
This section explains what happens to your pension benefits when you die, whether that's before or after retirement. It covers the protections for your spouse, civil partner, and children, how lump sums and pensions are paid out, and why it's important to keep your nomination details up to date.
What happens to my retirement benefits when I die?
Protection if you die in pensionable service
If you die in pensionable service, your dependants will receive the following benefits:
Life assurance
ScottishPower Benefits Section A lump sum of four times either your pensionable salary or your final pensionable salary when you die (whichever is the biggest). Your spouse/civil partner can choose to receive a pension instead of part of this lump sum.
FSLP Benefits Section A lump sum of four times your final pensionable salary when you die. You can choose for your spouse/civil partner to receive a pension instead of part of this lump sum.
Spouse/civil partner’s pension
Your spouse/civil partner will get half of the pension you would’ve received at normal pension age. This will be worked out using your final pensionable salary when you die and pensionable service you would’ve completed at normal pension age.
Children’s pensions
Pensions may also be paid to your eligible children.
Note: Some of these benefits may be higher if you die after normal pension age.
Protection if you die after retirement
The Scheme continues to provide financial protection for your dependants after you retire.
Cash sum
If you die within five years of retirement, the outstanding pension payments for the remainder of the five years as a cash lump sum.
Spouse/civil partner’s pension
Typically, your spouse/civil partner will get half of your pension after you die, but this may differ depending on whether you had exchanged any pension for other options at retirement or your date of leaving the Scheme.
Children’s pensions
Pensions may also be paid to your eligible children.
Protection if you die before retirement but after leaving the Scheme
Benefits are also payable to your dependants after you’ve left the Scheme, if you die before retirement.
Cash sum
ScottishPower Benefits Section - the bigger of:
- The maximum tax-free cash lump sum you could’ve received when your pension was due to start plus five times your remaining annual deferred pension, or
- Your total contributions (excluding Added Years contributions) with interest to the date you died.
FSLP Benefits Section - the bigger of:
- Five times your annual deferred pension revalued to the date you died, or
- Your total contributions with interest to the date you died.
Spouse/civil partner’s pension
Typically half of your deferred pension at the date you died, but this may differ depending on whether you had exchanged any pension for other options at retirement or your date of leaving the Scheme.
Children’s pensions
Pensions may also be paid to your eligible children.
Note: These amounts may be subject to certain limits as set out in the Scheme’s Rules. These are also subject to change depending on whether you retire before or after your normal pension age.
Who can receive retirement benefits when I die?
Lump sum
The Trustee must decide who to pay any lump sum to – this currently means it can be paid free of inheritance tax.
To guide the Trustee, it’s very important that you complete your nomination online and keep it up to date, by logging into your OneView account. The Trustee doesn’t have to follow your wishes but will always take them into account
Note: ScottishPower Benefits Section – if you joined the Scheme before 1990 you must complete a Notice of Direction by logging into your OneView account (found within the ‘Materials and Downloads’ section). If you don’t, the Scheme must pay the lump sum to your estate, and it will attract inheritance tax. You only ever need to complete this form once.
Spouse/civil partner’s pension
Your legal spouse is your husband, wife, or civil partner.
If you don’t have a legal spouse, the Trustee can decide to pay the pension to another dependant if you’ve completed your nomination online with their details. They must either be financially dependent on you, or their finances must be interdependent with yours.