Paragraph 9 Payment of lump sums on death

(1)

A lump sum payable under paragraphs 1 to 8 must be paid in accordance with this paragraph.

(2)

The lump sum must be paid to the member's personal representatives, except so far as it is payable to a different person or body under sub-paragraph (4) or (6).

(3)

A member may give notice to the scheme manager—

(a)

specifying—

(i)

the member's personal representatives;

(ii)

one or more other individuals; or

(iii)

one incorporated or unincorporated body, to whom the lump sum is to be paid; and

(b)

where two or more individuals are specified, specifying the percentage of the payment payable to each of them.

(4)

If the member has—

(a)

given notice under sub-paragraph (3) specifying a person; and

(b)

not revoked that notice,

the lump sum (or, as the case may be, the percentage of it specified in respect of the person) may be paid to the person unless sub-paragraph (5) or (7) applies.

(5)

This sub-paragraph applies if—

(a)

the person specified in the notice has died before the payment can be made; or

(b)

the payment to that person is not, in the opinion of the scheme manager, reasonably practicable.

(6)

If the member—

(a)

leaves a surviving adult dependant; and

(b)

has not given notice under sub-paragraph (3) or has revoked any notice so given,

the lump sum may be paid to that person unless sub-paragraph (7) applies.

(7)

This sub-paragraph applies if the person to whom the lump sum (or a specified percentage of the lump sum) would otherwise be payable has been convicted of an offence specified in F1paragraph 12(4) of Schedule 3 (forfeiture of rights to benefits) and the Secretary of State has directed, as a consequence of that conviction, that the person's right to a payment in respect of the member's death is forfeited.

(8)

A notice under sub-paragraph (3)—

(a)

must be given in writing; and

(b)

may be revoked at any time by a further notice in writing.

(9)

The scheme manager may pay the lump sum to any person claiming to be the member's personal representative or otherwise to fall within sub-paragraph (3)(a), without requiring proof that the person is such a person concerned, if the lump sum does not exceed—

(a)

£5,000; or

(b)

any higher amount specified in an order made under section 6(1) of the Administration of Estates (Small Payments) Act 1965 M1 as the amount to be treated as substituted for references to £500 in section 1 of that Act.

(10)

The prohibition on assignment of benefits in paragraph 10 of Schedule 3 does not apply to an assignment by personal representatives under this paragraph.

Annotations

Textual amendments

F1: Words in Sch. 14 para. 9(7) substituted (1.4.2025 with effect from 1.4.2015) by The National Health Service Pension Schemes (Amendment) Regulations 2025 (S.I. 2025/316), regs. 1(2)(5), 33

Marginal citations

M1: 1965 c.32.