RHM Pension Plan 35 and Plan 45 - RHM Pension Scheme - UK.com

26
Death after retirement
Once payment of your pension starts, you receive it for the rest of your life.
On your death, the Plan
provides the following benefits:
◆ A widow’s or widower’s
pension payable for life.
◆ Children’s allowances.
◆ A lump sum if you die within
five years of retiring.
◆
Widow’s or widower’s
pension
If you are married, your widow or
widower will receive an immediate
pension for life. This pension will
normally be one-half of your full
pension at the date of death. Any
reduction which was made to your
pension either because you took a
cash lump sum when you retired (see
page 18) or because you gave up part
of your pension to provide an
additional pension for a dependant
(see next page) will be added back.
Example Let us assume that a member
dies after retiring with a pension of
£5,000 a year, having given up
£1,000 a year of pension in order to
provide a tax-free cash sum. For the
purposes of calculating the widow’s or
widower’s pension, the £1,000 of
pension given up would be added back.
So the widow’s or widower’s pension
would be:
1 /2 x £6,000
= £3,000 a year
(£57.69 a week)
◆ Condition
If you are legally separated from your
wife or husband at the time of your
death or if you are living apart, part
or all of the widow’s or widower’s
pension may be withheld at the
Trustees’ discretion.
◆
Dependant’s pension
If no widow’s or widower’s pension
is payable and you leave an adult
person who was financially
dependent on you - for example, a
common law husband or wife or
dependent parents - the Trustees
have discretion to pay a pension,
normally of the same amount as the
widow’s or widower’s pension, to
the dependant concerned.