What to do if your circumstances change, and what your loved ones are entitled to when you die.
What your loved ones receive when you die
If you die in retirement, the following benefits would be paid to your loved ones:
1. A pension
The person of your choosing (called your Recognised Dependant) would receive:
|A pension for life equal to half of your pension but based on your Final Earnings rather than your Final Pensionable Earnings (before any reduction for early retirement or taking a tax-free cash lump sum)||+||Any extra pension that you chose to provide for your dependant (in exchange for part of your pension at retirement) when you retired||+||Any extra pension from your Additional Voluntary Contribution (AVC) fund that you chose to provide for your dependant when you retired|
If your Recognised Dependant is more than ten years younger than you, the Trustee may reduce the amount of pension payable to them.
2. A Child's Allowance
A Child's Allowance is payable. It is calculated in the same way as if you die as an active member, but uses the Recognised Dependant's pension payable on death in retirement. The Trustee will allocate the Child's Allowance between your Qualifying Children.
3. Pension guarantee
If you and your dependants (if any) die before a total of five times your initial pension has been paid, your beneficiaries will receive a lump sum equal to this amount (minus any payments already made to you and your dependants but excluding any Child's Allowance).
Case study: dependants’ benefits
As Hazel and William have lived together for many years, and Hazel relied on William’s income to pay their joint bills, she is a ‘Recognised Dependant.
Hazel will receive:
(William's pension based on his Final Earnings, ignoring his tax-free lump sum)
Kathy will receive:
As Kathy is in full-time education and under age 23, she will receive a Qualifying Child's pension of:
until age 23
Please note: This example is intended to illustrate broadly how the calculations operate - it does not account for any pre-1 April 2011 and post-1 April 2011 split that would be applied in practice.
Updating your details
You can make your wishes known to the Trustee about who you would like to receive any lump sum payable in the event of your death by:
- Download and fill out an Expression of Wish form.
- Return it to BOC Pension Services.
- Keep it up to date as and when your preferences or circumstances change.
It is important to complete a new form each time your personal circumstances change, even if your nominated beneficiaries do not change.
If you die, your beneficiaries would be asked to complete and return a Death of an Active Member, Deferred Member or Pensioner form.
When your circumstances change
If your bank details change
If you change your bank or account details without letting us know, your pension payments might be delayed or even prevented.
If you move house
You should also let us know of any address changes as incorrect address details could delay the eventual payment of your pension. This applies even after you have left the Scheme.
If you are a pensioner and your payslip is returned undelivered, your pension payments will be temporarily suspended until you have provided us with new address details.
If you get married or divorced
You should complete a new Expression of Wish form whenever your personal circumstances change, even if your nominated beneficiaries do not change. If your personal circumstances change, you may want to change the beneficiary (or beneficiaries) of any lump sum payable when you die.
The Trustee is not legally bound by your Expression of Wish form, but they will take your wishes into account when deciding who should receive your benefits. Under current legislation, this allows any lump sum death benefit to be paid free of Inheritance Tax.
Changing your name
Keep BOC Pension Services updated
To access your savings, your details must be correct on BOC Pension Services’ records. If details such as your name, address or bank details are out of date, there is a chance that payment(s) will be delayed or even prevented.
If you change your name by Deed Poll (or when you get married or divorced), you will need to let BOC Pension Services know.
Pensions and divorce
If you get divorced, both your pension and your spouse's (or registered civil partner's) pension must be taken into account when your joint assets are being calculated.
- If the Trustee receives a pension sharing order from the Court, your ex-spouse (or ex-registered civil partner) will become entitled to a share of your pension – this is called a pension credit.
- The Trustee will require your ex-spouse (or ex-registered civil partner) to transfer this pension credit out of the Scheme to a suitable separate pension arrangement.
- A separate process applies if the Trustee receives a Court order requiring pension earmarking.
If you have recently divorced, you should review your Expression of Wish form so that the Trustee knows who you would now like to receive any lump sum death benefit payable in the event of your death.
If you made Additional Voluntary Contributions (AVCs), these are administered by Legal & General - BOC. Please also contact Legal & General if your details change.