Death in Deferment - N Plan
If you die after leaving IBM but before retirement you should be aware of the conditions under which pensions may be payable to your dependants.
A pension of 50% of your deferred pension earned on service after 6 April 1997 only will be payable to a spouse, civil partner or dependant (in the case of separation, the Trustee has absolute discretion over who may receive a pension).
There is no spouse’s pension for service completed before 6 April 1997.
A Child's pension would also be payable (maximum of three children) at the rate of one-thrid of the spouse's pension.
In addition, if you are a married man, your wife would receive 50% of the Guaranteed Minimum Pension (GMP) accrued between 6 April 1978 and 5 April 1997 that is included in your deferred pension. If you are a married woman or a registered civil partner, your husband/civil partner will received 50% of your GMP accrued between 6 April 1988 and 5 April 1997.
GMP is not payable to a partner or child.
If you are a member of the higher accrual N Plan (since 6 April 2005) and no pensions were payable to a spouse, partner of child for service after 6 April 1997, any contributions, including interest, would be payable to your beneficiary.
The value of any ASC/AVC fund would be payable tax-free to your beneficiary.
Last Updated: 24/06/2009
