Defined benefits lump-sum death benefit

Resource type: Glossary item

Status: Maintained

Jurisdictions: England, Scotland, Wales

A registered pension scheme (www.practicallaw.com/5-201-6474) that is a defined benefit scheme (www.practicallaw.com/0-107-7545) may pay a defined benefits lump-sum death benefit on a member's death. Payment constitutes a benefit crystallisation event 7 (www.practicallaw.com/9-380-7482) and so the scheme administrator must make a check against the member's available lifetime allowance (www.practicallaw.com/8-201-6477) and pay a lifetime allowance charge (www.practicallaw.com/8-507-1314) on any excess. If the lump sum is paid in respect of a member who has died after reaching the age of 75, a special lump-sum death benefits charge (www.practicallaw.com/0-507-1271) will also be payable.

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  • Resource ID: 8-204-0458
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