If you die while you are still an active member of alpha, two benefits can be paid; a lump sum paid to the people you have nominated and pensions for your eligible dependants.
Who can receive the lump sum payment?
The Scheme Administrator (MyCSP) will normally pay it to the person, people, or organisation(s) that you have nominated, but it is paid at the discretion of the Scheme Manager.
How much is the lump sum?
The lump sum amount is worked out in two ways; and the higher of these two amounts is paid to your nominees.
Two times your final pay, less any lump sum payments due (or already paid) from the Civil Service Pension arrangements.
Five times the pension you have built up, less any pension payments already made from the Civil Service Pension arrangements.
What final pay do you use when you work out the lump sum?
The final pay is usually the pensionable pay you got over the last 12 months ending with your last day of pensionable service, but it can be the pensionable earnings from any of the last 10 full scheme years if this is higher. Pay that is taken from earlier years is adjusted in line with prices.
Who can get a dependant’s pension?
There are two types of dependant’s pension.
An adult dependant’s pension.
A child’s pension.
When working out a dependant’s pension, how much do they get?
They receive a percentage of your pension worked out at your date of death. If you die in service as an active member, your pension gets enhanced as outlined below, before the dependants’ pensions are worked out. If you die after taking partial retirement, then your dependant’s pensions will not include this enhancement.
How is the enhancement worked out?
This is worked out using your total earned alpha pension.
Your earned alpha pension is the pension that comes from your pensionable earnings each year, not from a transferred in pension or any added pension you have bought.
This pension amount is multiplied by 10, or the number of years that were left until you would have reached NPA if this is lower (or if you are on a fixed term contract, the end of that contract if earlier). This is then divided by the number of years you were an active member of alpha.
The result is the enhancement that will be added to your alpha pension before working out your dependants’ benefits.
How much is an adult dependant’s pension?
The pension that your dependant will receive is 37.5% of the increased pension.
If you were buying added pension with benefits for your dependants, they will also receive 37.5% of the added pension that you would have received.
Are there any reasons why the adult dependant’s pension would not be this much?
If your spouse, civil partner, or partner is more than 12 years younger than you, the pension they receive will be reduced.
How much is a child’s pension?
There are a few things that can change the amount that gets paid as a pension. These include the number of children who will be receiving a pension, and whether or not there is an adult dependant’s pension to be paid.
How much is a child’s pension:
if there is an adult dependant’s pension?
When there are one or two children, each child will get a pension equal to 30% of your pension.
If there are more than two children, the total of their pensions will be equal to 60% of your pension, with each of the eligible children receiving an equal share.
if there is no adult dependant’s pension?
When there are one or two children, each child will get a pension equal to 50% of your pension.
If there are more than two children, the total of their pensions will be equal to 100% of your pension, with each of the eligible children receiving an equal share.
Death while you are in service and the Principal Civil Service Pension Scheme (PCSPS)
This section only applies to members who were in the PCSPS (classic, classic plus, premium, or nuvos) before 01 April 2015, and then moved from that scheme into alpha.
It does not cover every aspect of the scheme; full details are set out in the scheme rules, which are the legal basis of the scheme. You can find copies of the PCSPS scheme rules on the Civil Service Pensions website.
Nothing in this guide can override the scheme rules. Every effort has been made to make this guide as accurate as possible, but in the event of any difference, the rules will apply. This guide is based on the rules current at the time of publication and there is no guarantee that any part of the rules will not change in the future. You should be aware that tax rates and limits are subject to change.
If this section applies to you, please read it carefully to understand what happens to both parts of your pension if you die in service.
Death benefits
Your eligible dependants will be entitled to benefits for the alpha part of your benefits.
Dependants’ pensions
Your eligible dependants will get a pension based on your alpha pension plus any pension that would be due from your PCSPS pension too.
Death in service lump sum
For members with banked service in classic or banked benefits in nuvos, the lump sum is worked out in the normal way. But for members with banked service in classic plus or premium, the death in service lump sum is worked out in a slightly different way.
The higher of the following two calculations determines the amount that is paid to your nominees.
A multiple of your final pay, less any lump sum payments due, or already paid, from the Civil Service Pension arrangements.
Five times the pension you have built up, less any payments already made from the Civil Service Pension arrangements.
For members with banked classic plus and premium service, the multiple used in the first calculation depends on the date you die. This starts as three times your pay on 01 April 2015, and then it is reduced by 0.1 each year. So on 01 April 2016 it is 2.9, 01 April 2017 it is 2.8 and so on. This continues to reduce until 01 April 2025 when the multiple reaches and stays as two.
