What is a Life Assurance only member?
A life assurance only member is covered from lump sum death benefits but does not accrue pension benefits.
As a consequence of provisions in the European Pensions Directive, effective from 22 September 2005, it is more usual for life assurance only benefits to be provided through a separate group life assurance scheme but some pension schemes may still have life assurance only members.
Life assurance only cover through a pension scheme may be provided where:
The death lump sum payable in respect of a life assurance only member is usually less than the amount payable in respect of an active member.
