UUPS - About United Utilities

Benefits payable on deathWhether you die after youretire or whilst still workingfor the Company, UUPS canprovide a range of benefitsfor your spouse, children anddependants.These include pensions and,in some circumstances, cashlump sums. Details of thebenefits payable are shownin the following sections.DEATH IN SERVICEHow your family is protectedThere will be a lump sum payment foryour beneficiaries.How the lump sum is calculatedThe lump sum will be:2 x Pensionable Earnings; plusyour Personal Account and the valueof your AVCs.Under current tax rules, the lump sumpayment will normally be free of tax.If you choose not to join UUPS or optout,you will still be provided with a lumpsum of 2 x Pensionable Earnings ondeath in service.ADDITIONAL LIFE COVERYou have the option to increase thelump sum up to a maximum of 12 xPensionable Earnings. However, onlylump sum benefits up to the level of theLTA (see page 22) can be paid tax-free.You will be able to choose additionalmultiples of earnings:a) on joining UUPS; orb) once a year at a lifestyle event(primarily marriage or the birth ofa child) you will be able to increasecover by 1 x Pensionable Earningsproviding you satisfy the insurancecompany’s “at work” criteria; andc) at the renewal date, 1 July each year,you will be able to increase coverby up to 1 x Pensionable Earningssubject to satisfying the “at work”criteria. The “at work” criteria isthat you are at work on the date ofincrease and have not been absentdue to illness or disablement formore than 15 days in the previous12 months.You may be able to increase cover atother times, or by additional multiplesof Pensionable Earnings, subject to theproduction of any satisfactory medicalevidence the insurance company mayrequire.Please refer to page 8 ‘Deductions fromRegular Contributions’ for details of thecost of providing the basic level of lifecover and to the additional life coverleaflets for the cost of increasing thelevel of your cover. If you wish to receivedetails about how much it will cost you toincrease your life cover please contactyour payroll department.WHO RECEIVES THE LUMP SUM?The Trustee decides who should receivethe lump sum but it will take intoaccount your wishes as indicated onyour Expression of Wish form and yourpersonal circumstances at the time ofyour death. More information is given onpage 19.MEDICAL EVIDENCEIf you join UUPS after your firstopportunity you are a late entrant andthe insurance company may requiresatisfactory medical evidence prior tocovering you for any lump sum abovethe standard 2 x Pensionable Earningsbenefit.DEATH AFTER RETIREMENTHow your family is protected on yourdeath depends on the choices you madeat your retirement (see ‘RetirementBenefits’ on pages 14 to 15).The cost of the lump sum of 2 xPensionable Earnings is met by adeduction from the Company’s RegularContributions.The cost of providing this additionalcover is met by a deduction from yourRegular Contributions and is dependenton your age and the amount of additionalcover you require.18