Regulation 13 Lump sum death benefit
Where a contributor who is paying regular contributions to secure payment of a lump sum death benefit dies when no election under regulation 5(2) has effect, the Department shall pay the lump sum secured by those contributions to his personal representatives.
Where on the death of a contributor an election under regulation 5(2) has effect—
the department shall apply the pension element by purchasing a pension policy from the authorised provider determined in accordance with paragraph (3) or (4) to provide the pension or pensions in accordance with the terms of that election; and
the Department shall pay any balance of the lump sum death benefit to his personal representatives.
Any dependant for whom a pension is to be provided pursuant to paragraph (2) who has attained the age of 18 years at the date of death of the contributor may within six months of the date of death of the contributor make an election specifying the authorised provider by whom the pension is to be provided and where such an election is made the Department shall apply the pension element for the purchase of that pension from that authorised provided.
Where no election has been made pursuant to paragraph (3) the Department shall purchase a pension policy from an authorised insurance company selected by it.
If at the time of the death of the contributor any person specified in a notice of election given under regulation 5(3) had died or ceased to be a dependant, the proportion of the lump sum death benefit that was to have been applied to the purchase of a pension for that person shall be paid to the personal representatives of the contributor.