If you die while working
Death in service
DC Start
If you die as a member of DC Start and while you are working for Nestlé, your loved ones will receive:
- a lump sum of 2 x your pensionable earnings in the past 12 months; plus
- the value of your DC account as a tax-free lump sum.
DC Core
As a member of the Fund there are valuable benefits for your loved ones if you die:
- A lump sum of 6 x your pensionable earnings in the past 12 months; plus
- the value of your DC account as a tax-free lump sum.
If you are a member of DB Core or DB CorePlus and you are contributing to DC Core at the time you die because you earn above the pensionable earnings cap, you are still considered a DB member for the purposes of the death-in-service lump sum.
If you are a DC Core member but you have also built up pension in DB Core or DB CorePlus, your spouse, civil partner or other financial dependant will receive half of the pension you would have received at your normal pension age, based on your career average revalued pensionable earnings. If you built up savings in DC Core because you earned more than the pensionable earnings cap, the part of your DC account that was built up from the contributions that you and Nestlé made on your pensionable earnings above the cap would be used to fund the defined benefit pension.
DB Core and DB CorePlus
If you die as a member of DB Core or DB CorePlus and while you are working for Nestlé, your loved ones will receive:
Lump sum
- A lump sum equal to 3 x your pay (or 4 x your pensionable earnings if you have protected rights), which will not be subject to the pensionable earnings cap; plus
- The value of any DC account if you have earned more than the pensionable earnings cap, excluding additional voluntary contributions (AVCs), that is not being used to fund a dependant’s pension; plus
- The value of any DC account not related to earning more than the pensionable earnings cap, AVCs, transfers in or previous balances built up in Lane 1 or the Starter Lane.
The death-in-service lump sum is not paid from the Fund, but from the Nestlé Group Life Assurance Scheme.
Dependant's pension
Your spouse, civil partner or other financial dependant will receive half of the pension you would have received at your normal pension age, based on your uncapped career average revalued pensionable earnings when you die.
If you have built up a DC Core account because you have earned more than the pensionable earnings cap, this will be used towards providing the dependant’s pension.
If your spouse, civil partner or dependant is more than 10½ years younger than you, the dependant’s pension will be reduced to allow for the fact that it is likely to be paid for longer.
The pension will be paid for life and will not be affected if your dependant decides to remarry or enter into a new civil partnership. The pension will be increased in the same way as other Fund pensions (see Pension increases in retirement for more information).
If you are not married or in a civil partnership, or you have been separated for at least two years, the Trustee has the discretion to pay some or all of the pension to a nominated dependant. However, if you are still married or in a civil partnership and have not been separated for at least 2 years, a minimum pension must be paid to your spouse or civil partner.
If you would like the Trustee to consider a dependant for this benefit, you must complete a Dependant's Pension Nomination Form.
Children's pensions
If you have dependent children, they will receive a percentage of the pension you would have received at your normal pension age based on your uncapped career average revalued pensionable earnings at the date of your death. The percentage depends on how many eligible children you have and whether or not a dependant’s pension is being paid too.
The Fund will provide a pension for any of your dependent children up to age 18, or 23 if in full-time education. This pension is paid to eligible children of any age who, in the opinion of the Trustee at the time of your death, are unable to support themselves financially due to a physical or mental disability. The Trustee has the discretion to pay pensions to any other eligible children. The children’s pensions will be increased in the same way as other Fund pensions (see Pension increases in retirement for more information).
The death-in-service lump sum benefits that are multiples of earnings or pay are paid from the Nestlé UK Group Life Scheme, which is separate to the Fund. All other benefits are paid from the Fund.
If you have built up benefits in more than one section of the Fund, the benefits that are paid will be made up of a combination of the benefits built up in each section.
If you also built up some DB pension in the Fund either before or after 1 August 2017, your spouse, dependant and/or eligible children would also receive pensions relating to the DB pension you have built up.
If you are not a member of the Fund and you die while you are working for Nestlé, your beneficiaries will receive a lump sum of 2 x your pensionable earnings in the past 12 months.
Remember to complete a Nomination Form
The Trustees will have discretion to decide who to make lump sum payments to. To help the Trustees make a decision as to who should receive any lump sum, you should keep your Nomination Form up to date.