Once you retire, your pension will be paid for the rest of your life. However, should you die within five years of your retirement date, the unpaid balance will be paid to your nominated dependant as a lump sum.
Spouse and dependant’s pension
If you are married or in a civil partnership and die after retirement, your spouse will receive a pension. This will be 2/3rds of the amount you were receiving at the date of your death.
If your pension was reduced because you exchanged part of your pension for a cash lump sum on retirement, this reduction will be ignored when establishing the amount to which the 2/3rds will apply.
The amount of the pension will be reduced if your spouse is more than 10 years younger than you. If your spouse remarries while in receipt of a pension under the Scheme, the Trustee will review the situation and may in exceptional circumstances terminate the pension.
Additionally, if you have children a pension may be payable to them.