What about death benefits?
Death benefits may vary between DB and DC schemes.
DB Members
The member normally has no choice over whether or not to provide a pension on death, it is a standard benefit under the scheme rules.
The pension payable is determined by the scheme rules and can only be paid to a dependant. There is no impact on the income the member will receive on retirement.
However, some schemes will permit a member to surrender some of their own pension in order to provide more pension for their spouse.
DC Members
When a member of a DC scheme purchases an annuity, the benefits are tailored to suit their personal circumstances. The member does have to make a choice:
Under a flexi-access drawdown arrangement the pension could be paid to a dependant, nominee or successor.
For DC members, the choices affect the amount of income received.
