PTM071400 - Death benefits: essential principles: authorised benefits following the death of a dependant, nominee or successor
As of 6 April 2024 there is no longer lifetime allowance. If you are looking for information about protections, enhancement factors and the lifetime allowance charge please see these pages on The National Archives.
If you are looking for information about the principles of lifetime allowance and benefit crystallisation events please see these pages of The National Archives.
Glossary |
Where a dependant, nominee or successor was entitled to receive drawdown pension before they died it may be possible for a pension scheme to provide authorised benefits following their death. It is not possible to provide an authorised benefit following the death of a dependant, nominee or successor in any other circumstance.
A pension scheme can pay more than one type of authorised death benefit and can provide benefits for more than one person.
Individuals may receive more than one type of death benefit.
Death of a dependant
Death of a nominee
Death of a successor
Death of a dependant
Authorised benefits may be provided following the death of a dependant only if:
- the dependant had been entitled to receive dependants’ drawdown pension, and
- there are unused funds remaining in that dependant’s flexi-access drawdown fund and/or dependant’s drawdown pension fund when the dependant died.
The authorised benefits that may be paid following the death of a dependant are:
- Flexi-access drawdown fund lump sum death benefit – see PTM073600,
- Drawdown pension fund lump sum death benefit – see PTM073500,
- Charity lump sum death benefit – see PTM073900,
- Successor’s flexi-access drawdown – see PTM072400,
- Successor’s annuity – see PTM072300.
Death of a nominee
Authorised benefits may be provided following the death of a nominee only if:
- the nominee had been entitled to receive pension as nominee’s flexi-access drawdown, and
- there are unused funds remaining in that nominee’s flexi-access drawdown fund when they died.
The unused funds in the nominee’s flexi-access drawdown fund may be used to provide one or more of the following authorised payments:
- Flexi-access drawdown fund lump sum death benefit – see PTM073600,
- Charity lump sum death benefit – see PTM073900,
- Successor’s flexi-access drawdown – see PTM072400,
- Successor’s annuity – see PTM072300.
Death of a successor
Authorised benefits may be provided following the death of a successor only if:
- that person had been entitled to pension as successor’s flexi-access drawdown, and
- there are unused funds remaining in that successor’s flexi-access drawdown fund when they died.
The unused funds in that successor’s flexi-access drawdown fund may be used to provide one or more of the following authorised payments: