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Death benefit – applicable to members who joined the Fund before 1 August 2017

Death benefit – applicable to members who joined the Fund before 1 August 2017

You had the option to choose the level of cover you needed back in 2017. If you did not let us know what you wanted at the time, you qualified for the default cover applicable to your age band and previous risk benefit category (i.e. the old A,B,C,D and E categories).
The table below illustrates, for each of the old risk benefit options A,B,C,D and E, the different age bands, the level of death cover (multiples of annual pensionable salary) available in each age band and the default selection that applied if you did not make a formal selection in 2017.

Moving age bands

Moving from the 30-39 age band to the 40-49 age band – you may elect to increase your cover from a maximum multiple of 5 times your annual pensionable salary to 6 times your annual pensionable salary.

Moving from the 40-49 age band to the 50-54 age band – your maximum multiple reduces from 6 to 5 times your annual pensionable salary. Members who opted for 6 times annual pensionable salary will automatically be moved to 5 times annual pensionable salary from 1 July following the attainment of age 50.

Moving from the 50-54 age band to the 55-75 age band – the maximum multiple reduces from 5 times to 4 times your annual pensionable salary for old risk benefit options A and B members. From age 55, the maximum death cover for former risk benefit option C members is 3 times annual pensionable salary and for former risk benefit options D and E members it is twice annual pensionable salary. On the 1st of July following the attainment of age 55, members who were on multiples of annual pensionable salary higher than the maximum set for the 55-75 age band benefit option will automatically be changed to the maximum multiple of pensionable salary death cover.

The following is important to remember:

  • The maximum amount of cover reduces with age.  The reason for this is that cover becomes increasingly more expensive the older we become.  The Trustees prefer members to save for retirement rather than paying large premiums for death cover.
  • If you are in the 30-39 age band and have chosen the maximum multiple of 5 times your annual pensionable salary and you do not make a selection on moving age bands, you will automatically still qualify for a multiple of 5 times your annual pensionable salary on moving to the 40-49 age band. This is despite the fact that you could have applied to increase your cover multiple to 6 times your annual pensionable salary.
  • If you are in the 40-49 age band and have chosen the maximum multiple of 6 times your annual pensionable salary and you do not make a selection on moving age bands, the new maximum multiple of 5 times cover will be applied on moving to the 50-54 age band.
  • From the 1st of July following the attainment of age 55 the maximum multiple of cover that applies to each age band is different for the old risk benefit options.

You may continue to decide to increase or decrease your cover with effect from 1 July every year and/or within 3 months of a life event.