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Rule 9 Lump sum benefits payable on death of a MemberI1I2

United Kingdom

(1)

If a Member dies after the Cut-Off Date, the following lump sum benefits shall be paid to that Member’s personal representatives depending on the status of the Member on the day that Member died (and subject to the provisos in sub-paragraph (6) below).

(2)

If the Member dies when no benefits from the RMSPS have been brought into payment, a lump sum equal to the greater of—

(a)

the aggregate of—

(i)

5 times the amount of the annual preserved RMSPS NRA60 Pension at the rate at which that pension would have been payable (calculated without any enhancement of RMSPS Reckonable Service) to the Member had such pension been brought into payment on the date of that Member’s death with an entitlement to the immediate payment of such pension; and

(ii)

5 times the amount of the annual preserved RMSPS NRA65 Pension at the rate at which that pension would have been payable (calculated without any enhancement of RMSPS Reckonable Service) to the Member had such pension been brought into payment on the date of that Member’s death with an entitlement to the immediate payment of such pension; or

(b)

1.25 times RMSPS Pensionable Salary.

(3)

If the Member dies when that Member’s RMSPS NRA60 Pension is in payment but his or her RMSPS NRA65 Pension has not yet come into payment, a lump sum equal to the greater of—

(a)

the aggregate of—

(i)

if the Member dies within 5 years of his or her RMSPS NRA60 Pension coming into payment, an amount equal to the pension payments which would have been made during the remainder of the 5 year period (but calculated at the annual rate of the RMSPS NRA60 Pension in payment at the date of his or her death) (for avoidance of doubt the amount of the Member’s pension payments to be used for this calculation shall be exclusive of any amount surrendered under Rule 16 (Surrender of part pension to provide for a spouse or other Dependant) and inclusive of any amount that the Member was entitled to as a result of the exercise of the conversion option under Rule 17 (Conversion of lump sum into pension)); and

(ii)

5 times the amount of the annual preserved RMSPS NRA65 Pension at the rate at which that pension would have been payable (calculated without any enhancement of RMSPS Reckonable Service) to the Member had such pension been brought into payment on the date of his or her death with an entitlement to the immediate payment of such pension; or

(b)

1.25 times RMSPS Pensionable Salary.

(4)

If the Member dies when that Member’s RMSPS NRA60 Pension has not yet come into payment but his or her RMSPS NRA65 Pension is in payment, a lump sum equal to the greater of—

(a)

the aggregate of—

(i)

if the Member dies within 5 years of his or her RMSPS NRA65 Pension coming into payment, an amount equal to the pension payments which would have been made during the remainder of the 5 year period (but calculated at the annual rate of the RMSPS NRA65 Pension in payment at the date of his or her death) (for avoidance of doubt the amount of the Member’s pension payments to be used for this calculation shall be exclusive of any amount surrendered under Rule 16 (Surrender of part pension to provide for a spouse or other Dependant) and inclusive of any amount that the Member was entitled to as a result of the exercise of the conversion option under Rule 17 (Conversion of lump sum into pension)); and

(ii)

5 times the amount of the annual preserved RMSPS NRA60 Pension at the rate at which that pension would have been payable (calculated without any enhancement of RMSPS Reckonable Service) to the Member had such pension been brought into payment on the date of that Member’s death with an entitlement to the immediate payment of such pension; or

(b)

1.25 times RMSPS Pensionable Salary.

(5)

If the Member dies when that Member is in receipt of both his or her RMSPS NRA60 Pension and his or her RMSPS NRA65 Pension, a lump sum equal to the aggregate of—

(a)

if the Member dies within 5 years of that Member’s RMSPS NRA60 Pension coming into payment, an amount equal to the pension payments which would have been made during the remainder of the 5 year period (but calculated at the annual rate of RMSPS NRA60 Pension in payment at the date of that Member’s death) (for avoidance of doubt the amount of the Member’s pension payments to be used for this calculation shall be exclusive of any amount surrendered under Rule 16 (Surrender of part pension to provide for a spouse or other Dependant) and inclusive of any amount that the Member was entitled to as a result of the exercise of the conversion option under Rule 17 (Conversion of lump sum into pension); and

(b)

if the Member dies within 5 years of that Member’s RMSPS NRA65 Pension coming into payment, an amount equal to the pension payments which would have been made during the remainder of the 5 year period (but calculated at the annual rate of RMSPS NRA65 Pension in payment at the date of that Member’s death) (for avoidance of doubt the amount of the Member’s pension payments to be used for this calculation shall be exclusive of any amount surrendered under Rule 16 (Surrender of part pension to provide for a spouse or other Dependant) and inclusive of any amount that the Member was entitled to as a result of the exercise of the conversion option under Rule 17 (Conversion of lump sum into pension)).

(6)

The following provisos apply to payments made under the preceding sub-paragraphs of this Rule 9—

(a)

the amounts payable under this Rule 9 are subject to the limits in Part IX (Overriding Finance Act Provisions) of this Schedule;

(b)

in each of sub-paragraphs (2), (3) or (4) above for the purposes of calculating which of (a) or (b) is the greatest, no account shall be taken of the reductions specified in (c) below;

(c)

when payment is made under sub-paragraphs (2), (3) or (4) above it shall be reduced by the appropriate reductions corresponding to the reductions which are to be made from a lump sum under General Rule 13 (Plan M), General Rule 14 (Plan U) and General Rule 15 (Plan L) inclusive according to the circumstances;

(d)

where a Section B Active had before the Cut-Off Date been a “Pensioner” (as defined in Clause 1A (Definitions and interpretation) of the RMPP Rules) who had re-entered the RMPP and at the time of his death retained a deferred pension under the provisions of Rule 9(3)(b) of the RMPP Rules in force prior to 1 April 2010, a payment made to the Member under this Rule 9 will be (despite Clause 3(5)(a) (Benefits payable in respect of Wholly Transferred Beneficiaries)) in substitution for any death benefit otherwise payable under the RMSPS in respect of that uncrystallised deferred pension. If, however, the payment due in respect of the Member under this Paragraph would be smaller than any other death benefit which the F1Minister for the Civil Service could, but for this Paragraph have paid to the Member then the Minister for the Civil Service shall pay the larger death benefit instead;

(e)

for the purpose only of calculating the amounts specified in Paragraphs (2)(a)(ii), (3)(a)(ii) and (4)(a)(ii) above where there was part-time service in the last three years of RMSPS Reckonable Service, then RMSPS Pensionable Salary will be calculated by reference to the actual pay and pensionable emoluments paid by the Employer, and not by reference to the full-time rate of pay;

(f)

the benefits referred to in any of the sub-paragraphs above are additional to any refund of contributions which falls to be made to the personal representatives of the Member under sub-paragraphs (2) to (5) inclusive of General Rule 3 (Refund of contributions);

(g)

where a Member to whom any of sub-paragraphs (2), (3) or (4) above applies dies having elected on or before the Cut-Off Date under General Rule 7(1B) (Members’ contributions) of the RMPP Rules to pay the additional contribution specified in that Rule without subsequent revocation under General Rule 7(1C) of the RMPP Rules the lump sum payable under any of sub-paragraphs (2), (3) or (4) above shall be not less than the aggregate of—

(i)

a lump sum of 3/80 of that Member’s RMSPS Pensionable Salary for each year of RMSPS Reckonable Service completed before 1 April 1999, and proportionately for each part of a year, up to a maximum of 40 years at age 60; and

(ii)

a lump sum equal to five times the amount of the annual pension based on RMSPS Reckonable Service before 1 April 1999 at the rate at which it would have been payable (calculated without any enhancement of RMSPS Reckonable Service) to the Member had that Member retired from Employer employment on the date of that Member’s death with an entitlement to the immediate payment of such a pension;

(h)

where a Member has transferred out either his or her RMSPS NRA60 Benefits or his or her RMSPS NRA65 Benefits in accordance with Clause 11 (Individual transfers out of the Scheme) the provisions of this Rule 9 will apply only in respect of that tranche of benefits which is still retained in the RMSPS;

(i)

the Minister for the Civil Service may at his discretion deduct the cost of funeral expenses from the lump sum death benefits payable under this Rule 9 and pay it to the person who incurred the funeral expenses; and

(j)

for the purposes of calculating the rate at which any preserved pension would have been payable to a Member for the purposes of this Rule 9, the reductions set out in Rule 3(9) (Benefits payable to Members on retirement) will not apply.

Annotations

Textual amendments

F1

Words in Sch. 1 substituted (2.4.2014) by The Transfer of Functions (Royal Mail Pension Plan) Order 2014 (S.I. 2014/500), arts. 1(2), 6(3) (with art. 4)

Commencement

I1

Sch. 1 Pt. IV rule 9 not in force at made date, see art. 1(3)

I2

Sch. 1 Pt. IV rule 9 in force at 1.4.2012 by S.I. 2012/966, arts. 2, 3(a)