Other benefits of company pension schemes
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So far we have been looking entirely at pensions. It is
important to remember that many pension schemes provide other
benefits. Two very commonly provided benefits are provided upon,
either of
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Death
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Pension schemes commonly provide benefits payable on the death
of the member to those financially dependent upon the member. These benefits
may include any or all of the following
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a lump sum multiple of salary
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a return of the members contributions
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a pension payable to the members spouse for life
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pensions for dependent children
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pensions for individuals financially dependent on the member
It is down to each individual scheme as to which (if any) of
these benefits are payable and to whom. Read the Scheme Booklet to
find out which your scheme provides.
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Ill-health
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Pension schemes also commonly provide benefits payable to a
member on ill-health. What constituents ill-health and what
benefits are payable will depend upon the scheme in question but
it is often a pension payable for life starting with immediate
effect. If you are applying for an ill-health pension the scheme
will generally require medical evidence to support your
application and may request additional evidence.
Ill-health pensions are a very valuable benefit. If you are
applying for ill-health retirement it is likely that the Trustees
of the scheme will have to use their discretion to decide whether
you are eligible for ill-health or not. This will involve
consulting the Trust Deed to see what constitutes ill-health under
the scheme and whether this applies to your case.
Death benefits may also be payable on the death of a member who
had previously taken ill-health retirement.
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Read the guide to
investment in the pensions guide. It explains what you need to
think about before investing for your retirement.
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Tell a friend about
Essential Pensions. Send an automatic message to your friends
email account about the site.
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Use our online calculator
to get an estimate of your basic state pension.
Its free and
simple to use you can even include it on your own website!
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If you have a pensions
related question then please let us
know.
If it's something other people
would find useful then we will post an answer in our Frequently Asked Question
(FAQ) area.
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