NHS Death in Service Benefits: What Your Family Would Receive

Nobody likes to think about it, but death in service cover is one of the most valuable parts of being in the NHS Pension Scheme. It is worth understanding what it provides, because a few simple steps can make sure it goes to the right people.

This guide covers the 2015 scheme, which all active members are now in. If you also have older 1995 or 2008 section service, benefits from that service follow those sections' rules. NHS Pensions can confirm the details for your record.

The lump sum: twice your pensionable pay

If an active member of the 2015 scheme dies in service, the scheme normally pays a lump sum of twice their pensionable pay. For example:

For part-time staff, it is based on actual pensionable pay, not the full-time equivalent.

Survivor pensions

As well as the lump sum, the scheme can pay:

• an adult dependant's pension to a spouse, civil partner or a qualifying partner
• children's pensions for eligible children, usually until they reach a set age, or for longer if they are in full-time education or have a disability

The amounts depend on the member's pension and are set out in the scheme rules.

Make sure your nominations are up to date

The lump sum can be paid to the people you nominate. If you have not made a nomination, it is usually paid to your legal personal representatives, which can take longer and may not reflect your wishes.

Review your nomination when:

• you marry, enter a civil partnership or start living with a partner
• you separate or divorce
• you have children
• someone you nominated dies

Nomination forms are available from NHS Pensions and through the member portal.

What you lose if you opt out

Death in service cover only applies to active members. If you opt out of the NHS Pension, the cover stops. Replacing a lump sum of twice your salary, plus survivor pensions, through private life insurance can be expensive, especially if you have health conditions. Our guide to opting out explains the trade-offs.

Bank and part-time staff

Bank staff and part-time staff who are active members are covered too, based on their actual pensionable pay. If you work only on the bank, check that you are enrolled in the scheme for your bank assignment.

Death after leaving or retiring

Different benefits apply after you leave NHS employment or retire. Deferred members have lower death benefits than active members, and pensioners' survivors receive survivor pensions based on the pension in payment. Our guide to leaving the NHS Pension explains what changes when you leave.

Common questions

Is the lump sum taxed? In most cases it is paid free of tax, but tax rules on lump sum death benefits changed from April 2024, and large amounts can be affected. NHS Pensions can explain the position.

Does an unmarried partner qualify? A partner can qualify for a survivor pension if they meet the scheme's conditions. A nomination for the lump sum helps make your wishes clear.

Does the employer provide separate life insurance? Not normally. The NHS Pension provides the cover.

Steps to take now

A few minutes now can save your family a lot of stress later:

1. Check your nomination through the NHS Pensions member portal and update it if your circumstances have changed.
2. Make or update a will, especially if you have children or an unmarried partner.
3. Tell someone where to find your details, including your NHS Pensions membership number and employer.
4. Check any separate cover, such as a mortgage life policy, so you understand how it fits with the NHS benefits.
5. Review after big life events, such as marriage, separation or a new baby.

Your employer's HR team can also tell your family who to contact if the worst happens.

Check your contributions

Use the pension contributions calculator to see what you pay for this cover and your pension.