If you die in pensionable re-employment following retirement there will be two elements to be considered in calculating the lump sum as follows:
- the lump sum in respect of the benefits that you have earned in re-employment, and
- where death occurs within 5 years of retirement, the lump sum in respect of your original retirement pension
How is each element of the lump sum calculated?
- the lump sum in respect of your re-employment will be equal to 5 times the pension for your service accrued
- the lump sum in respect of any retirement benefits that have been in payment for less than 5 years will be the lesser of either:
- 5 times your annual pension less the amount of pension already paid, or
- twice your pensionable pay less any retirement lump sum paid