Member Login 
Death before Retirement
You may be wondering what happens to your benefits should you die.
The information below explains what happens should you die before or after retirement.
What happens if I die while I am still working?
If you pass away while you are a contributing member of the Scheme a lump sum will be payable. This sum will be equal to three times your Pensionable Earnings in the previous tax year, plus a refund of the part of your Retirement Account that is derived from your contributions (i.e. any contributions that you have paid directly to the Scheme (including AVCs) and any contributions that the Company has paid on your behalf through Smart Pensions). These funds will be adjusted to take account of investment return. The part of your Retirement Account that is derived from the Company’s own contributions is retained by the Scheme.
Who receives this benefit?
The Trustee has discretion to decide who, amongst a wide category of your relatives and dependants, should receive this lump sum. However, you can let the Trustee know who you want to receive the benefit by completing a Nomination Form. The Trustee will always consider any nomination that you make, although it will not be bound by it. It is therefore important that you complete a Nomination Form, and keep it up to date to reflect changes in personal circumstances, such as marriage, divorce or adoption. You can obtain a Nomination Form at any time from the downloads section of this website, the Pensions Administrator or your HR contact (if you are still employed by Baxi).
What if I have a dependant?
If you leave a spouse, civil partner, or dependant, an additional sum of up to two times your Pensionable Earnings in the previous tax year will also be available. The Trustee may use this to purchase a pension for your spouse, civil partner or dependant, or alternatively it may pay it to them as a lump sum.
If you do not leave a spouse, civil partner or dependant, this benefit will not be payable. If you are not married or in a civil partnership, you can use the Nomination Form to let the Trustee know about anyone who is financially dependent on you, who should be considered for this additional benefit.
If you have been employed by the Company for less than a complete tax year at the date of your death, the benefits described above are based on the annual rate of your Pensionable Earnings at the date of death. If there is any doubt, the Company will specify your Pensionable Earnings for the purpose of this benefit.
For more information about death before retirement benefits, please refer to the Member Booklet (under Downloads).
Your Life Assurance Benefit
When you start working at Baxi, you will be covered for a life assurance benefit, which is equal to your Basic Salary. Once you have joined the Scheme, you are covered for the benefits described above in the section called “What happens if I die while I’m still working?”
The cover for the higher life assurance benefit starts when your Application Form is received by HR, or on the date you’re auto-enrolled. In some circumstances, the insurer for the life assurance benefit may require satisfactory medical evidence before you are covered for this benefit, but you will be notified if that applies to you.
Death after leaving service
What benefits are payable if I die after leaving the scheme but before retirement? If you die after leaving the Scheme but before retirement, the value of your Retirement Account will be paid as a lump sum.
The Trustee has discretion to decide who, amongst a wide category of your relatives and dependants, should receive this lump sum. However, you can let the Trustee know who you want to receive the benefit by completing a Nomination Form. The Trustee will always consider any nomination that you make, although it will not be bound by it. It is therefore important that you complete a Nomination Form, and keep it up to date to reflect changes in personal circumstances, such as marriage, divorce or adoption. You can obtain a Nomination Form at any time from the downloads section of this website, the Pensions Administrator or your HR contact (if you are still employed by Baxi).
Note that this does not apply if you have transferred your Retirement Account out of the Scheme. In these circumstances, no further benefits are payable from the Scheme.
For more information about the benefits payable on death after leaving the Scheme but before retirement, please refer to the booklet summarising benefits for members who have left Baxi (under Downloads).
Death after retirement
What benefits are payable if I die after retirement? This depends on the options that you choose at retirement. If you use your Retirement Account to buy an annuity with an external provider, benefits may be payable, depending on the type of annuity.
If you choose to take all of your Retirement Account as a one-off cash lump sum at retirement, no further benefits will be payable on your death.
If you choose to transfer your benefits to the L&G WorkSave Master Trust or another pension arrangement, the benefits payable on your death (if any) will be governed by the new arrangement. You should ask the new arrangement to explain how benefits will be calculated on your death.
You should consider the needs of you and your family carefully when you retire, ensuring you choose the most appropriate benefits at retirement. Under normal circumstances, you can’t change these choices at a later date.
For more information about death after retirement benefits, please refer to the Member Booklet (under Downloads).