Family benefits

Plan 18 provides financial protection for your dependants should you die while you are an employee of the Company and a member of the Plan.

Lump sum

If you die before you reach the age of 65 while you are an employee of the Company and a member of Plan 18, a lump sum equal to 4 x your annual pay, plus a refund of that part of your Plan 18 account in respect of your own contributions since joining, is payable.

To make sure the Trustees of the Plan know the person you would choose to receive this lump sum, you should complete a nomination form

Widow’s/widower’s pensions

If you die while you are an employee of the Company and a member of Plan 18, a pension is payable to your widow/widower (or in some cases, another dependant).

This pension is equal to 25% of your annual pay at the time of death. The pension is guaranteed to increase at a rate of 5% a year or by the increase in Retail Prices, if this is less.

Benefits as a deferred member

If you die after leaving the Plan but before you qualify to start drawing your Plan 18 pension, the value of the pension your widow/widower receives will depend on the amount of money paid in by you and the Company up to the time you left, and the investment return these contributions earned before and after you ceased to be a member.

Benefits after retirement

If you die after starting to draw your Plan 18 pension, any widow’s/widower’s pension payable will depend on whether you arranged for one to be provided when you started to draw your own pension. For example, if you were married at the time of retirement, you might provide for the pension to continue being paid at half the previous amount if you died leaving a widow/widower.

Children’s allowances

If you are a member and you die leaving children, an allowance is payable for the benefit of a child up to age 18 or, at the discretion of the Plan’s Trustees, up to age 23 if the child remains in full-time education. These allowances are payable for up to four children, although the Trustees may approve payments for more than four if they feel it is justified. The allowance is based on 5% of your annual pay at the time but with a minimum payment* which is guaranteed to increase at a rate of 5% a year or the increase in Retail Prices, if this is less.

(*At 6th April 2012, the minimum payment is £2,525.04 a year for each dependent child.)
 

© Clarks Pensions 2014