When I die

It is very important that someone tells us straightaway when you die by calling the BA Pensions team on 020 8538 2100.

Your pension payments will continue until the end of the month in which you die, and then they will stop. When you die, your spouse or partner, Dependent Children, Additional Dependants may be eligible to receive certain benefits if you have made the necessary arrangements. These will usually be paid from the date of your death. BA Pensions will start payment of these as soon as possible and once we have all the information we need to set up the payments.

We will require original marriage and birth certificates if we have not already seen these.

A pension of two-thirds of the pension you earned whilst paying the higher contributions towards an Adult Survivor's pension (before any adjustments to your own pension such as taking a tax-free lump sum or any early retirement reduction) will automatically be paid to your husband, wife or civil partner. The normal Scheme increase arrangements apply to Adult Survivor's pensions and they are payable for life.

If you are not married or in a civil partnership when you die, the Trustee can decide to pay the Adult Survivor's pension to a qualifying 'surviving dependant'. This could be a common-law spouse, partner, or someone else who meets the requirements under the Rules of the Scheme and who is financially dependent on you to a substantial extent. Full details are included in the Surviving Dependant Registration form.

If the person you want to receive your Adult Survivor's pension is more than 10 years younger than you, we will reduce the pension at the rate of 1.25% for each year of difference in your ages over 10 years. For example, if the person is 11 years younger than you, we will reduce the pension by 1.25%, or if the person is 12 years younger than you, we will reduce the pension by 2.5%.

If you saved AVCs while you were an active member, your spouse or partner may receive an AVC pension when you die if you chose to buy an AVC pension with attached Adult Survivor’s cover when you retired or drew your AVC benefits.

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Your Dependent children can receive allowances on your death.

  • This allowance is calculated as one-sixth of your pension (before any adjustments to your own pension such as taking a tax-free lump sum or any early retirement reduction).
  • Your children qualify up to the age of 16 or up to the age of 23 as long as they are in full-time education/vocational training (or in the case of a child who is seriously incapacitated, for as long as they are unable to earn a living up to age 23). Allowances are usually paid to the surviving parent or legal guardian until a child reaches 18 years of age.
  • Only two allowances are payable. However, the Trustee can spread the payments to more than two children if applicable. For example, if you have three dependent children, allowances of £1,800 a year each payable to two children could be split into allowances of £1,200 a year payable to three children. If a child ceases to be eligible for an allowance, the allowances will be redistributed amongst any remaining eligible children.
  • If you have paid for an Adult Survivor's pension but no such pension is payable on your death, each children's allowance will be trebled for the period during which you paid for an Adult Survivor's pension.
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To provide an Additional dependant's pension you must have given up part of your own pension permanently at the time you started drawing it. The amount given up was determined by your own and your additional dependant's ages. The additional dependant's pension plus any Adult Survivor's pension that is payable on your death must not be more than the pension you were receiving when you died (remember that your own pension might have been reduced for early payment or if you decided to take a lump sum at retirement).

Additional Voluntary Contributions (AVCs)

  • A dependant's pension may be payable from your Additional Voluntary Contributions (AVCs) account, if you bought an AVC pension which included dependant's cover.
  • If you die in retirement but have deferred your AVCs, your AVC account can be used to provide spouse or civil partner benefits through an insurance company of your choice or will be paid to your estate.
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Lump sum

If you die within 5 years after retirement, a lump sum may be paid if no Adult Survivor's pension is payable. The lump sum is broadly the difference between benefits you have received, if any, and your contributions plus interest. The lump sum is free of Inheritance Tax.

The lump sum doesn't have to be paid to your spouse, partner or surviving dependant. By completing a Notice of Wish form, you can ask the Trustee to consider at its discretion another person or cause of your choice.

 
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