If you die whilst still a contributing member of the Plan, the following benefits will be paid:
A cash sum equal to 3 times your basic salary (or four times your basic salary if chosen) through salary sacrifice.
This benefit is usually payable from a separate trust to the HP Plan Trust, although it may be paid from the Plan if you have previously applied for Enhanced Protection.
In addition the following lump sums may also be payable:
- An amount equal to the total basic contributions paid by you or credited to you as well as any contributions paid by or credited to you in relation to Final Salary AVCs (without interest); plus
- An amount equal to the value of any money purchase AVCs attributable to you as at the date of death.
The Trustee has discretion as to whom payment is made.
Spouse or dependant’s pension
If you die whilst in Pensionable Service your spouse or registered civil partner will be entitled to a pension for life equal to:
- If you die before Normal Pension Age: 60% of the pension you would have received had you stayed in Pensionable Service to Normal Retirement Date but based on your Pensionable Salary at the date of your death.
- If you die after Normal Pension Age: 60% of the pension you would have received if you had retired immediately before your death (ignoring any commutation).
If you die without leaving a legal spouse or registered civil partner, a dependant’s pension may become payable at the discretion of the Trustees.
The Plan will also provide pensions for your children.
The children’s pension in total will be equal to 20% of the spouse or registered civil partner’s pension multiplied by the number of children, up to a maximum of three.
These pensions are payable for so long as the children are:
a) under age 18;
b) under age 23 but in full-time education or training approved by the Trustee; or
c) suffering from mental or physical disability which renders him or her, in the opinion of the Trustee, dependent upon you.
The children’s pension will be doubled if there is no spouse’ pension /registered civil partner/dependant’s pension or if the spouse’s/registered civil partner/dependant’s pension ceases to be payable.
This pension will be distributed between pensionable children in accordance with the Plan rules.
For more information relating to the steps to be followed if death occurs whilst in service please refer to the ‘How to guide - Death in service’.