Stand-out Q – pension death benefits…
Our Technical Hub provides access to a wide range of pension tax and trust technical resources. Every now and then we post tweets covering stand out questions from our technical content and our answers in case others might also find them helpful. As Twitter’s character restrictions only allow for the bare bones of the Q&A we link to the details here, too.
Can a deceased member’s pension rights be transferred?
Once a scheme member dies the rules of the pension scheme covering death benefits become effective i.e. death benefits become payable under the scheme. Where the member dies under a pension scheme that does not offer flexi access drawdown for a beneficiary, the only way such a benefit can be set up is if the scheme trustees decide to make use of the statutory override that exists.
Where a beneficiary is in receipt of a pension death benefit e.g. flexi access drawdown, then it is possible for the beneficiary’s flexi access drawdown pension to be a transferred to another registered pension scheme provided the transferring and receiving schemes agree.
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