PTM165100 - Information and administration: information the scheme administrator must automatically provide following the member’s death
Glossary |
Information that the scheme administrator must automatically provide to personal representatives about lump sum death benefits
Information that the scheme administrator must provide to trustees about the special lump sum death benefits charge
Information that the scheme administrator must automatically provide to personal representatives about lump sum death benefits
Regulation 8 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
Following a member’s death a scheme administrator must provide certain information to the member’s personal representatives.
If a pension scheme pays a
- a defined benefits lump sum death benefit, or
- an uncrystallised funds lump sum death benefit
following the member’s death the scheme administrator must provide information about the lump sum payment. This information must be provided automatically to the deceased member’s personal representatives within three months of the final such payment being made.
The information that must be provide to the deceased member’s personal representative is:
- the amount of the lump sum
- the payment date, and
- the total amount of the member's lump sum and death benefit allowance expended.
The total amount of the member’s lump sum death benefit allowance is the amount used up by:
- any relevant benefit crystallisation events under the scheme in respect of the member to the extent that sums and assets representing those benefits have not been transferred to another registered pension scheme, and
- where the scheme has received a transfer of crystallised rights the relevant benefit crystallisation even that occurred in respect of those transferred rights
Information that the scheme administrator must provide to trustees about the special lump sum death benefits charge
Regulation 10A The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
Section 206(8) Finance Act 2004
Certain lump sum death benefits are taxable. When they are paid to a trust, rather than an individual, and it is not a bare trust, the scheme administrator is liable to pay the special lump sum death benefits charge. Individual beneficiaries of the trust who indirectly receive part of that lump sum in the form of a payment out of the trust may be able to claim a refund of some or all of the tax paid by the scheme administrator. To do so they will need information on the tax paid by the scheme administrator and the amount of the lump sum they received before tax was deducted as this is the figure on which they will have to pay tax (see PTM073010).
When the scheme administrator is charged the special lump sum death benefits charge on a payment on or after 6 April 2016 to a trustee (who is not a bare trustee) they must tell the trustee within 30 days starting with the date of payment of the lump sum death benefit:
- the amount of the lump sum death benefit on which tax has been charged,
- the amount of that special lump sum death benefit charge,
- the name and pension scheme tax reference number of the registered pension scheme, and
- the name, date of birth and date of death of the member of the pension scheme in respect of whom the lump sum death benefit is paid.
The trustee is then required to pass on certain information to the trust beneficiary when the trustee makes onward payment of the lump sum death benefit (see PTM165400).