LGPS death in service

dazzadub

my mother in law has a pension with Local Government pension services.

we see in paper work a death in service payment as a lump sum.

we have looked breifly at this term, death in service, and from what we read, if you die before pension age in work or out of work this payment is made along with the pension pot.

the person doesnt have to be at work at the time of death to get this payment, and the service means employed at the time of death.

it says the lump sum would be 3x her final salary.

are we correct or not

Pixieboy

Death in service in this context means death whilst an active member of the LGPS, so whilst still employed in the employment in which she is still a member of the LGPS.
She does not have to be paying contributions, i.e. she can have been on long term sick leave and run out of sick pay for instance, but she does have to still be an active member, i.e. has not left the employment or opted out.
Hope this helps.
If you want to be more specific about the circumstances, by all means post again.

dazzadub

We were told that the death in service would apply even if she didnt die at work.

We always thought in service meant at work.


She was a member and paid in every month as it was part of her pension plan.

margaretclare

No, it doesn't necessarily mean 'at work' i.e. while in the workplace.

My daughter died while in her own home, suddenly, over the Christmas/New Year break in 2002 while her offices were closed. Her widower got 3 months' of her final salary.

guesswho2000

dazzadub wrote: »

We were told that the death in service would apply even if she didnt die at work.

We always thought in service meant at work.


She was a member and paid in every month as it was part of her pension plan.

Correct, if she's an active member, paying the monthly contributions, then if she dies, be it hit by a bus out of work or a filing cabinet falls on her in the office, the death benefit becomes payable.

Afaik this doesn't apply to deferred members, as in those who have a pension from being employed in LG previously who have now left. If it did, this would be a ridiculous unaffordable benefit!

I'm an LGPS member myself, so am fairly certain this is all the case, not quite sure what happens as of next year's changes (LGPS 2014) but I expect this benefit will remain.

xylophone

http://www.leics.gov.uk/index/pensions/local_government_pension_scheme_-_information_for_deferred_members.htmDeath

Above re deferred death benefits.

http://www.lgps.org.uk/lge/core/page.do?pageId=8718921

dazzadub

she is a paying member and has been for many years, he last pay slip dated march showed her contribution.

its what death in service means, as it doesnt mean at work. more employed and death happens before retirement age.

this is what we have read any way.

dazzadub

she worked for local government for around 20 yrs, paying into her peanion with LGPS for around 17 yrs.

in her pension pack it says death in service payment, but doesnt say if this means while working.

i have looked around the net and its all very different, some say only if you die while at work, some say if she is still employed by the company and dies out side work this still is payable. along with her pension pot.

im trying to find the info out out my father in law, eg her husband is trying to get all her insuarnce policys, pension etc together to sort out.

bigadaj

Normally pays out if you are mployed at the time of death, but doesn't have to be at work.

Benefits will also frequently be separate from any pension, so three times annual income is the death in service benefit and there may well also be a pension payment on top, normally lump sum.

dazzadub

This is what I'm being told even if someone dies out side work the death in service is still payable as long as they are employed by the company and are still making your contributions and there are no breaks in payments.

As you say doesn't mean at work.

So no idea what it is or if payable.

dazzadub

This is what I'm being told even if someone dies out side work the death in service is still payable as long as they are employed by the company and are still making your contributions and there are no breaks in payments.

As you say doesn't mean at work.

So no idea what it is or if payable.