Lump sums

The scheme administrator can pay lump sums to any selected beneficiary including individuals, trusts, the member's estate and charities.

Drawdown pensions

The scheme administrator can only pay drawdown pensions to the member's dependants and other individuals who have been included in the member's nomination form. Such individuals are 'nominees'.


The scheme administrator can only buy annuities from an insurance company for the member's dependants and nominees.

No surviving dependants or nominees

Where the member had no surviving dependants or nominees, the scheme administrator can pay drawdown pensions or buy annuities for individuals chosen by the scheme administrator.

What are the tax consequences of providing benefits?

There may be no tax consequences if the member dies before their 75th birthday. However, if they die on or after their 75th birthday, there will be tax consequences.

Please refer to our guide on pension scheme benefit allowances for more information.

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