What will happen in the event of my death?
In the event of your death, the STSS may pay out benefits to your surviving spouse/civil partner/nominated legal partner and/or dependant children depending on your circumstances at the time of death, and also the amount of Family Benefits Service you had accrued throughout your career.
The benefits which may be payable include a Death Grant lump sum payment, a Deficiency Grant, a Short-Term Pension, a Long-Term pension and Dependant pensions.
If you were to die whilst still in service, a Death Grant payment would be made amounting to three times your pensionable salary at time of death. If there was a surviving spouse or civil partner the Death Grant would automatically be paid to them. Alternatively, you can make a nomination to whom you would like the Death Grant to be paid. This can be a multiple nomination, as long as the amounts allocated to the various nominees total 100%. If there was no surviving spouse, civil partner and no other nominations were in place this payment would be made to your estate.
If your employment at the time of death, is further employment following your retirement, the Death Grant payment made would be three times your pensionable salary at the time of your death, but any lump sum you had previously been paid as a result of earlier retirements would be deducted from the total Death Grant payment.
If you die having left employment but not claimed your pension, i.e. if you are a preserved member of the scheme, the amount of Death Grant payable would be dependant on whether you have a surviving spouse, civil partner or have a nomination in place to receive the Death Grant. If you did have a surviving spouse, civil partner or have a nomination in place to receive the Death Grant, the amount payable would be equal to the lump sum you would have received had you applied for your benefits. If there is no surviving spouse or civil partner and no nominations in place there would be two calculations done to ascertain the amount payable to your estate as a Death Grant lump sum. The amount of lump sum payable to you, had you applied for your retirement benefits, would be compared against the total contributions you had paid plus 3% compound interest. Whichever calculation gives the most beneficial result would be used.