Blog
A deep-dive into a variety of pension topics to help you understand and learn more about your pension and the Scheme.
16/1/2023
Editorial
<h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: "Open Sans Condensed", sans-serif; font-size: var(--font-size-h3); font-weight: bold; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">What happens to your pension when you die?</span><br></h3><p>The death benefits that may be payable from your pension are considered separately to your will, and they depend on:</p><ul><li>which type of Scheme and Section you belong to</li><li>the options you select, and </li><li>whether you’re retired or still working when you die </li></ul><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You’ll find a brief guide below, but please refer to your Member Guide for more specific details of your own death benefits. Your Member Guide can be found under ‘My library’ when you log into your <a href="/my-rps">myRPS account</a>.</span><br></p><h4><strong></strong><strong>1. Death benefits for retired, defined benefit (DB) members</strong></h4><p><strong> </strong>If you’re retired, and you’re a DB member of the Railways Pension Scheme (RPS), your <strong>death benefits</strong> could include: </p><ul><li>Spouse’s pension – payable to a spouse, civil partner or same-sex spouse you were living with or married to at the date of your death. For many members this would be worth around half your basic pension. </li><li>Dependants’ pension – paid to a person who depended on you financially for 2 years prior to your death. The value may vary depending on circumstances and will reduce if the eligible dependent is younger than you by 10 years or more. </li><li>Children’s pension – at least the 2 youngest eligible children normally receive pensions until they are 18. The youngest child will typically receive 50% of the eligible spouse’s pension and the second child will receive 25%. If an eligible child continues in full-time education after they reach 18, the pension may still be paid, subject to Trustee or Committee agreement. If a child is disabled, the pension may be payable for life, if the Trustee agrees.<br></li></ul><p>There may also be <strong>a lump sum pay-out</strong> to your beneficiaries. The exact amount payable would depend on the amount of benefit you have taken since your retirement. If you have been receiving your pension for 5 years or more it’s unlikely any lump sum will be paid. <br></p><p>To help speed up the process, it’s important that you complete a Nomination form to let the Trustee know who you'd like the lump sum to be paid to. This can be done quickly and easily by <a href="/login">logging into your myRPS account</a> and going to ‘My Nominations’ in the ‘My Pension’ section of your member home page. Otherwise, it could go to the wrong person, or the payment may be delayed, which could result in tax being payable.<br></p><h4 data-list="2" data-level="1"><strong>2. </strong><strong>Death benefits for retired, industry wide, defined contribution (IWDC) members </strong><br></h4><p>If you’re a retired IWDC member, then your death benefits will depend almost entirely on how you have taken your pension. For example:<br></p><ul><li>If you have a single annuity, then all payments will stop when you die. That is unless you took a guarantee period, such as 5 years, in which case payments can continue until the end of that time or will be paid as a lump sum. </li><li>If you have drawdown, the remaining money could be paid out tax free if you die before the age of 75. If you’re over 75, then it is likely to be added to the beneficiaries’ other income and taxed. </li></ul><p>For more information, you would need to speak to your chosen annuity or drawdown provider, as these benefits are not payable directly by the IWDC scheme. <br></p><h4 data-list="2" data-level="1"><strong>3. </strong><strong>Death benefits for active, or preserved, DB members</strong><br></h4><p>If you’re an active, or preserved, defined benefit member and die whilst you’re still working, your pension could pay out a lump sum. If you’re younger than 75 when you die, this payment would normally be tax-free for your beneficiaries. Death benefits may also include a pension to either a spouse, civil partner or dependent child (as in point 1 above) but this would be taxed at their marginal rate of income tax. <br></p><h4 data-list="2" data-level="1"><strong>4. </strong><strong>Death benefits for active, or preserved, IWDC members</strong><br></h4><p>If you’re an active, or preserved, IWDC member, and die before your 75th birthday whilst you’re still working, and haven’t started drawing your pension, it can be passed to your beneficiaries tax-free.<br></p><h3>How can your friends/family claim? <br></h3><p>Before any claims can be made, the Scheme administrator, Railpen, will need to be notified of your death. <br></p><p>If you were still paying contributions into the RPS when you die, your employer will notify Railpen automatically. <br></p><p>If you had already stopped paying into your pension when you die, your death needs to be reported to Railpen directly. <br></p><p>This can be done by: <br></p><ul><li>Calling <strong>0800 012 1117</strong> and selecting Option 2: Bereavement. Or calling <strong>+44 1325 342 800</strong> internationally</li><li>Emailing <a href="mailto:csu@railpen.com"><strong>csu@railpen.com</strong></a><strong> </strong>or </li><li>Writing to Railpen at <strong>PO Box 300, Darlington, DL3 6YJ</strong><br></li></ul><p>For security reasons, Railpen will need to confirm at least three of the following: <br></p><ul><li>Your full name</li><li>Your date of birth</li><li>Your Pension reference number and/or National Insurance number</li><li>Your date of death</li><li>The name and address of whoever we should contact about your pension moving forward. <br></li></ul><p>Please ensure your friends/family are aware of these requirements. And know what they need to do in the event of your death. They can find more information <a href="/knowledge-hub/help-and-support/reporting-a-death">on the reporting a death page </a> <br></p><p>Once we know that you have died, we will write directly to whoever is dealing with your affairs. For example, this may be your next of kin or the executor of your estate. They will be asked to complete and return some forms. These forms will help us to identify anyone who might benefit from your pension.<br></p><p>Then, we will contact any potential beneficiaries to explain what they may be entitled to and what they need to do next. <br></p><p>Once we have received the information needed and proof of ID from all the potential beneficiaries, your death benefits will be considered by the Trustee. In line with scheme rules, the Trustee will decide where any death benefits should be paid. <br></p><p>All of this takes time, so it may take quite a while for any benefits to be paid following your death. <br></p><p>Our priority is making sure your money goes to the right people. We’ll do everything we can to make that process as quick and easy as possible for everyone involved. And our team will be on hand to help every step of the way. </p>
<h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: "Open Sans Condensed", sans-serif; font-size: var(--font-size-h3); font-weight: bold; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">What happens to your pension when you die?</span><br></h3><p>The death benefits that may be payable from your pension are considered separately to your will, and they depend on:</p><ul><li>which type of Scheme and Section you belong to</li><li>the options you select, and </li><li>whether you’re retired or still working when you die </li></ul><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You’ll find a brief guide below, but please refer to your Member Guide for more specific details of your own death benefits. Your Member Guide can be found under ‘My library’ when you log into your <a href="/my-rps">myRPS account</a>.</span><br></p><h4><strong></strong><strong>1. Death benefits for retired, defined benefit (DB) members</strong></h4><p><strong> </strong>If you’re retired, and you’re a DB member of the Railways Pension Scheme (RPS), your <strong>death benefits</strong> could include: </p><ul><li>Spouse’s pension – payable to a spouse, civil partner or same-sex spouse you were living with or married to at the date of your death. For many members this would be worth around half your basic pension. </li><li>Dependants’ pension – paid to a person who depended on you financially for 2 years prior to your death. The value may vary depending on circumstances and will reduce if the eligible dependent is younger than you by 10 years or more. </li><li>Children’s pension – at least the 2 youngest eligible children normally receive pensions until they are 18. The youngest child will typically receive 50% of the eligible spouse’s pension and the second child will receive 25%. If an eligible child continues in full-time education after they reach 18, the pension may still be paid, subject to Trustee or Committee agreement. If a child is disabled, the pension may be payable for life, if the Trustee agrees.<br></li></ul><p>There may also be <strong>a lump sum pay-out</strong> to your beneficiaries. The exact amount payable would depend on the amount of benefit you have taken since your retirement. If you have been receiving your pension for 5 years or more it’s unlikely any lump sum will be paid. <br></p><p>To help speed up the process, it’s important that you complete a Nomination form to let the Trustee know who you'd like the lump sum to be paid to. This can be done quickly and easily by <a href="/login">logging into your myRPS account</a> and going to ‘My Nominations’ in the ‘My Pension’ section of your member home page. Otherwise, it could go to the wrong person, or the payment may be delayed, which could result in tax being payable.<br></p><h4 data-list="2" data-level="1"><strong>2. </strong><strong>Death benefits for retired, industry wide, defined contribution (IWDC) members </strong><br></h4><p>If you’re a retired IWDC member, then your death benefits will depend almost entirely on how you have taken your pension. For example:<br></p><ul><li>If you have a single annuity, then all payments will stop when you die. That is unless you took a guarantee period, such as 5 years, in which case payments can continue until the end of that time or will be paid as a lump sum. </li><li>If you have drawdown, the remaining money could be paid out tax free if you die before the age of 75. If you’re over 75, then it is likely to be added to the beneficiaries’ other income and taxed. </li></ul><p>For more information, you would need to speak to your chosen annuity or drawdown provider, as these benefits are not payable directly by the IWDC scheme. <br></p><h4 data-list="2" data-level="1"><strong>3. </strong><strong>Death benefits for active, or preserved, DB members</strong><br></h4><p>If you’re an active, or preserved, defined benefit member and die whilst you’re still working, your pension could pay out a lump sum. If you’re younger than 75 when you die, this payment would normally be tax-free for your beneficiaries. Death benefits may also include a pension to either a spouse, civil partner or dependent child (as in point 1 above) but this would be taxed at their marginal rate of income tax. <br></p><h4 data-list="2" data-level="1"><strong>4. </strong><strong>Death benefits for active, or preserved, IWDC members</strong><br></h4><p>If you’re an active, or preserved, IWDC member, and die before your 75th birthday whilst you’re still working, and haven’t started drawing your pension, it can be passed to your beneficiaries tax-free.<br></p><h3>How can your friends/family claim? <br></h3><p>Before any claims can be made, the Scheme administrator, Railpen, will need to be notified of your death. <br></p><p>If you were still paying contributions into the RPS when you die, your employer will notify Railpen automatically. <br></p><p>If you had already stopped paying into your pension when you die, your death needs to be reported to Railpen directly. <br></p><p>This can be done by: <br></p><ul><li>Calling <strong>0800 012 1117</strong> and selecting Option 2: Bereavement. Or calling <strong>+44 1325 342 800</strong> internationally</li><li>Emailing <a href="mailto:csu@railpen.com"><strong>csu@railpen.com</strong></a><strong> </strong>or </li><li>Writing to Railpen at <strong>PO Box 300, Darlington, DL3 6YJ</strong><br></li></ul><p>For security reasons, Railpen will need to confirm at least three of the following: <br></p><ul><li>Your full name</li><li>Your date of birth</li><li>Your Pension reference number and/or National Insurance number</li><li>Your date of death</li><li>The name and address of whoever we should contact about your pension moving forward. <br></li></ul><p>Please ensure your friends/family are aware of these requirements. And know what they need to do in the event of your death. They can find more information <a href="/knowledge-hub/help-and-support/reporting-a-death">on the reporting a death page </a> <br></p><p>Once we know that you have died, we will write directly to whoever is dealing with your affairs. For example, this may be your next of kin or the executor of your estate. They will be asked to complete and return some forms. These forms will help us to identify anyone who might benefit from your pension.<br></p><p>Then, we will contact any potential beneficiaries to explain what they may be entitled to and what they need to do next. <br></p><p>Once we have received the information needed and proof of ID from all the potential beneficiaries, your death benefits will be considered by the Trustee. In line with scheme rules, the Trustee will decide where any death benefits should be paid. <br></p><p>All of this takes time, so it may take quite a while for any benefits to be paid following your death. <br></p><p>Our priority is making sure your money goes to the right people. We’ll do everything we can to make that process as quick and easy as possible for everyone involved. And our team will be on hand to help every step of the way. </p>
Blog
Death and your pension
Uunderstand what could happen to your pension, when you die and make sure your potential beneficiaries know what they need to do.
What happens to your pension when you die?
The death benefits that may be payable from your pension are considered separately to your will, and they depend on:
- which type of Scheme and Section you belong to
- the options you select, and
- whether you’re retired or still working when you die
You’ll find a brief guide below, but please refer to your Member Guide for more specific details of your own death benefits. Your Member Guide can be found under ‘My library’ when you log into your myRPS account.
1. Death benefits for retired, defined benefit (DB) members
If you’re retired, and you’re a DB member of the Railways Pension Scheme (RPS), your death benefits could include:
- Spouse’s pension – payable to a spouse, civil partner or same-sex spouse you were living with or married to at the date of your death. For many members this would be worth around half your basic pension.
- Dependants’ pension – paid to a person who depended on you financially for 2 years prior to your death. The value may vary depending on circumstances and will reduce if the eligible dependent is younger than you by 10 years or more.
- Children’s pension – at least the 2 youngest eligible children normally receive pensions until they are 18. The youngest child will typically receive 50% of the eligible spouse’s pension and the second child will receive 25%. If an eligible child continues in full-time education after they reach 18, the pension may still be paid, subject to Trustee or Committee agreement. If a child is disabled, the pension may be payable for life, if the Trustee agrees.
There may also be a lump sum pay-out to your beneficiaries. The exact amount payable would depend on the amount of benefit you have taken since your retirement. If you have been receiving your pension for 5 years or more it’s unlikely any lump sum will be paid.
To help speed up the process, it’s important that you complete a Nomination form to let the Trustee know who you'd like the lump sum to be paid to. This can be done quickly and easily by logging into your myRPS account and going to ‘My Nominations’ in the ‘My Pension’ section of your member home page. Otherwise, it could go to the wrong person, or the payment may be delayed, which could result in tax being payable.
2. Death benefits for retired, industry wide, defined contribution (IWDC) members
If you’re a retired IWDC member, then your death benefits will depend almost entirely on how you have taken your pension. For example:
- If you have a single annuity, then all payments will stop when you die. That is unless you took a guarantee period, such as 5 years, in which case payments can continue until the end of that time or will be paid as a lump sum.
- If you have drawdown, the remaining money could be paid out tax free if you die before the age of 75. If you’re over 75, then it is likely to be added to the beneficiaries’ other income and taxed.
For more information, you would need to speak to your chosen annuity or drawdown provider, as these benefits are not payable directly by the IWDC scheme.
3. Death benefits for active, or preserved, DB members
If you’re an active, or preserved, defined benefit member and die whilst you’re still working, your pension could pay out a lump sum. If you’re younger than 75 when you die, this payment would normally be tax-free for your beneficiaries. Death benefits may also include a pension to either a spouse, civil partner or dependent child (as in point 1 above) but this would be taxed at their marginal rate of income tax.
4. Death benefits for active, or preserved, IWDC members
If you’re an active, or preserved, IWDC member, and die before your 75th birthday whilst you’re still working, and haven’t started drawing your pension, it can be passed to your beneficiaries tax-free.
How can your friends/family claim?
Before any claims can be made, the Scheme administrator, Railpen, will need to be notified of your death.
If you were still paying contributions into the RPS when you die, your employer will notify Railpen automatically.
If you had already stopped paying into your pension when you die, your death needs to be reported to Railpen directly.
This can be done by:
- Calling 0800 012 1117 and selecting Option 2: Bereavement. Or calling +44 1325 342 800 internationally
- Emailing csu@railpen.com or
- Writing to Railpen at PO Box 300, Darlington, DL3 6YJ
For security reasons, Railpen will need to confirm at least three of the following:
- Your full name
- Your date of birth
- Your Pension reference number and/or National Insurance number
- Your date of death
- The name and address of whoever we should contact about your pension moving forward.
Please ensure your friends/family are aware of these requirements. And know what they need to do in the event of your death. They can find more information on the reporting a death page
Once we know that you have died, we will write directly to whoever is dealing with your affairs. For example, this may be your next of kin or the executor of your estate. They will be asked to complete and return some forms. These forms will help us to identify anyone who might benefit from your pension.
Then, we will contact any potential beneficiaries to explain what they may be entitled to and what they need to do next.
Once we have received the information needed and proof of ID from all the potential beneficiaries, your death benefits will be considered by the Trustee. In line with scheme rules, the Trustee will decide where any death benefits should be paid.
All of this takes time, so it may take quite a while for any benefits to be paid following your death.
Our priority is making sure your money goes to the right people. We’ll do everything we can to make that process as quick and easy as possible for everyone involved. And our team will be on hand to help every step of the way.
