Death in service

Contents


Notification of Death

If an employee dies in service, please complete the retirement datafile (LG4) providing as much detail as you can regarding the employee's next of kin.

If you hold a copy of the employee's Expression of Wish form, please send a copy of this and any copy certificates that you receive to lgps.forms@surreycc.gov.uk using Egress Switch. Please add 'Death in Service' to the subject line.

The completed retirement datafile (LG4) should be sent to pensions.technical@surreycc.gov.uk.

On receipt of your notification, we will contact the next of kin with details of any benefits that may be due.

In order to calculate the Death Grant due, we will need the Assumed Pensionable Pay for the member prior to their death.

Assumed Pensionable Pay on Death

The Assumed Pensionable Pay is calculated from the actual pay the member received from the last full three months prior to the pay period in which the member died, annualised, but ignoring any one-off lump sum payments. Any regular lump sum payments should be added back in afterwards.

If the member has been paid any arrears not relating to the period ignore these. Also ignore any reduction in pay due to strike or authorised leave.

If the previous full three months contain any previously calculated APP figure, us this as pay if it falls in the period.

Remember:

  • If the APP is materially lower than the pay the employee would normally receive, you can substitute the figure calculated with a higher figure. You must take into account the employee's pensionable pay in the previous 12 months.
  • A separate APP calculation is needed for each employment if the member has more than one employment.

Example 1:

Active member dies on the 4 April 2021.

The assumed pensionable pay is calculated using the average pay received from January to March 2021:

  • January 2021= £1,500
  • February 2021 = £1,800
  • March 2021 = £1,800

The APP is therefore £5,100 / 3 x 12 = £1,700 per month or £20,400 annually


Reduction in Hours

If the employee reduced their hours prior to their date of death and an Independent Registered Medical Practitioner (IRMP) certifies that the hours were reduced because of the ill health condition which led to the member's death, you can ignore the hours change when calculating the APP.

Please advise us by completing the LG4A form and returning it to lgps.forms@surreycc.gov.uk using Egress Switch. Please add 'Death in Service' to the subject line. This is sent in addition to the retirement datafile (LG4).

Part A and Part C of the form should be completed by you and Part B should be completed by the Independent Registered Medical Practitioner (IRMP).