Family Benefits

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 35, a lump sum equal to 4 x your annual pay, plus a refund of your own contributions, is payable.

To make sure the Trustees of the Plan know the person you would choose to receive this lump sum, please complete a Nomination Form.

Widow’s/Widower’s Pensions

If you die while you are an employee of the Company and member of Plan 35, 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.

If you die after leaving the Plan but before you qualify to start drawing your Plan 35 pension, your widow/widower receives a pension of half (50%) of your preserved pension at the time of leaving the Plan, increased between leaving and death.

If you die after starting to draw your Plan 35 pension and your pension has been paid for less than five years, the balance of five years’ pension payments will be paid as a lump sum to your dependants.

Your widow/widower will receive a pension equal to half of the full pension you would have been entitled to before giving up any for cash, plus half of any increases that would have been awarded on the full pension since you retired.

Children’s allowances

If you are a member or a pensioner 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