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Death benefits

As a member of the Fund you’ll receive valuable benefits for your family if you die:

  • while still working for Nestlé;
  • after you leave the Fund, but before you retire;
  • after you have retired.
Death in service

If you die while working for Nestlé, your dependants would receive the following benefits. These benefits would be paid in addition to any benefits you may have built up before 1 August 2017. If you are a member of DB Core or DB CorePlus and you earn above the Pensionable Earnings Cap, you are still considered a DB member for the purposes of the death-in-service lump sum.

Lump sum

Your nominated beneficiaries and/or dependant(s) would receive:

  • A lump sum equal to 3 x Pay (or 4 x Pay if you have protected rights), which will not be subject to the Pensionable Earnings Cap; plus
  • The value of any DC account above the Pensionable Earnings Cap (excluding AVCs) that is not being used to fund the dependant’s pension; plus
  •   The value of any DC accounts, AVCs, transfers in or previous balances built up in Lane 1 or Starter Lane.

Dependant’s pension

Your spouse, civil partner or other financial dependant would receive half of the pension you would have received at Normal Pension Age, based on your uncapped Career Average Revalued Pensionable Earnings at the date of your death. This would be based on an Accrual Rate of 1/80 in DB Core and 1/70 in DB CorePlus for pension built up from 1 August 2017 (see What will I receive?). Any DC account built up from contributions paid on earnings above the Pensionable Earnings Cap will be used to fund the pension payable.

If you are not married or in a civil partnership, or you have been separated for at least two years, the Trustee has the discretion to pay some or all of this benefit to your dependants. However, if you remain married or in a civil partnership and have not been separated for at least 2 years, a minimum pension must be paid to your spouse or civil partner.

If you would like the Trustee to consider a dependant for this benefit, you must complete a Dependant’s Pension Application Form. Any spouse’s, civil partner’s or dependant’s pension payable to someone who is more than 10½ years younger than you will be reduced to allow for the fact that it is likely to be paid over a longer period.

The pension is payable for life and is unaffected by any subsequent remarriage or civil partnership. The spouse’s, civil partner’s or dependant’s pension will be increased in the same way as other Fund pensions (see How will my pension be paid/increased?)

Children’s pensions

Any dependent children would receive a percentage of the pension you would have received at Normal Pension Age based on your Career Average Revalued Pensionable Earnings at the date of your death. This would be based on an accrual rate of 1/80 in DB Core and 1/70 in DB CorePlus for pension built up from 1 August 2017. The percentage depends on the number of children and whether or not a pension is paid to a spouse, civil partner or dependant as well.

The Fund will provide a pension for any of your dependent children up to age 18, or 23 if in full-time education. This pension is also payable to children at any age who, in the opinion of the Trustee at the time of your death, are unable to support themselves financially due to a physical or mental handicap. The Trustee has the discretion to pay pensions to stepchildren and foster children. The children’s pensions will be increased in the same way as other Fund pensions (see How will my pension be paid/increased?)

Complete a Nomination Form to let us know who should receive your benefits if you die.

The death-in-service lump sum benefits are paid from the Nestlé UK Group Life Scheme, which is separate to the Fund. All other benefits are payable from the Fund.

Please note that if you have built up benefits in more than one section of the Fund, the benefits payable will be made up of a combination of the benefits built up in each section. If you are not a member of the Fund and die whilst working for Nestlé, your beneficiaries would receive a lump sum of 2 x your Pay in the past 12 months.

Death in deferment

If you die after leaving Nestlé or opting out of the Fund, but before you start to take your deferred pension, the Fund will provide benefits for your dependants.

To help the Trustee make a decision as to who should receive any lump sum, you should keep your Nomination Form up to date.

If you built up pension in DB Core and/or DB CorePlus, the Fund will provide a pension for your spouse, civil partner or other financial dependant, normally equal to half of your deferred pension, including the increases between the date you leave and your death. the Fund will also provide a pension for your dependent children.

Death in retirement

The benefits available will depend on which section you are a member of. These benefits would be paid in addition to any benefits you built up before 1 August 2017.

If you die in retirement, your dependants would receive the following benefits.

Lump Sum

If you die within five years of starting to take your pension, your spouse, civil partner, dependant or nominated beneficiary would receive an amount equal to the outstanding balance of five years’ pension payments.

To ensure that the lump sum benefit can be paid quickly and free of Inheritance Tax (under current legislation) the Trustee has the discretion to decide who should receive it. Although the Trustee will take your wishes into consideration when making the payment, such payment will be at the absolute discretion of the Trustee. Complete a Nomination Form to let us know who should receive your benefits if you die.

Dependant’s pension

Your spouse, civil partner or other financial dependant would receive half of your DB pension at retirement. If you are not married or in a civil partnership, or you have been separated for at least two years, the Trustee has the discretion to pay some or all of this benefit to a dependant. However, if you remain married or in a civil partnership and have not been separated for at least 2 years, a minimum pension must be paid to your spouse or civil partner. If you would like the Trustee to consider a dependant for this benefit, you must complete a Dependant’s Pension Application Form.

Any spouse’s, civil partner’s or dependant’s pension payable to someone who is more than 10½ years younger than you will be reduced to allow for the fact that it is likely to be paid over a longer period. You may choose to take a lower pension for yourself in exchange for providing a higher pension for your dependants when you die. Full details are available on request from Nestlé Pensions. If you have no spouse, civil partner or other financial dependant when you die, no dependant’s pension will be payable.

Children’s pensions

Any dependent children would receive a percentage of your DB pension at retirement. The percentage depends on the number of children and whether or not a pension is paid to a spouse, civil partner or dependant as well. the Fund will provide a pension for any of your dependent children up to age 18, or 23 if in full-time education. This pension is also payable to children at any age who, in the opinion of the Trustee at the time of your death, are unable to support themselves financially due to a physical or mental handicap. The Trustee has the discretion to pay pensions to stepchildren and foster children. If you have no dependent children at the time of your death, no dependent children’s pension(s) will be payable.

The pensions payable will be a percentage of your pension at retirement, ignoring any level pension option and any reductions made because you chose to provide a cash sum or an increased dependant’s pension (see below), and increased to allow for any pension increases since you retired. The total pensions payable must not exceed 100% of the pension you were receiving before your death. If any restriction in benefits is needed, it will be applied to the children’s pensions.

No pension can be paid to a spouse, civil partner, dependant or child if you selected the single person's option on retirement.

The spouse’s, civil partner’s, dependant’s and children’s pensions will be increased in the same way as other Fund pensions (see How will my pension be paid/increased?)