Did you know that the NHS Pension Scheme provides valuable benefits to spouses, civil partners, partners and dependent children on the death of an NHS Pension Scheme member? Most people don’t!
These lump sum and pension benefits are included in the cost of the superannuation scheme for all NHS Pension members. They vary slightly depending on whether you’re a member of the 1995 Scheme or the 2008 Scheme. So how much is your next of kin entitled to?
First things first, the eligibility criteria!
For your next of kin to be eligible for your NHS Pension entitlement, certain criteria have to be met. You need to:
- Be married, in a registered civil partnership or with a qualifying partner.
- Be a member of the NHS Pension Scheme for a minimum of 2 years.
- Meet further criteria if you are not married or in a civil partnership, and fill in a nomination form for your qualifying partner.
If you’re not married or in a civil partnership, the NHS Pensions Agency has the right NOT to pay out your NHS Pension entitlement’s widows/widowers benefits. However, if you complete a Partner Nomination Form (PN1), you can nominate your partner to receive a survivor pension after your death.
Your application will be registered by NHS Pensions subject to the following (yes more!) criteria:
- The NHS Pensions Agency has received a correctly completed PN1 signed by you and your partner.
- You and your partner have been living together in an exclusive long term relationship for at least 2 years.
- You and your partner are free to marry or enter into a civil partnership.
- You are both financially interdependent ie you rely on joint finances but do not need to contribute equally.
The key benefits
So what exactly are the key benefits of the life cover provided by the NHS to active NHS Pension Scheme members? In essence, they are:
1. Payment of a lump sum to your dependents based on 2 x annual pensionable pay or average uprated earnings for practitioners. For example, a consultant on a salary of £110,000 would have £220,000 of life cover (tax free)
2. Dependent’s pension for your widow, widower, civil partner or nominated partner
3. Children’s pension, paid until age 23
How much is paid out varies slightly depending on whether you’re a member of the 1995 Section or the 2008 Section:
Where is your NHS Pension entitlement going to go when you die? Is it where you want it to go? Let us know below.