If you die whilst you are an Active Member of the Scheme a lump sum payment will normally be available of:

• A minimum of 2 times your annual Pensionable Salary as at the date of death, or such higher amount advised to you by your Employer.

and

• An amount equal to the accumulated fund value of your DC Account.

The lump sum of 2 times Pensionable Salary may be restricted by the insurer or by the Trustee in certain circumstances.

The same benefit is payable if you die as an Active Member while on paid family leave (maternity leave, adoption leave, paternity leave or parental leave) or certain types of unpaid statutory family leave.

There is flexibility as to who receives any lump sum on your death. You are strongly recommended to complete a Nomination Form to say whom you would like the Trustee to consider. It could be your husband, wife or civil partner, but you can nominate any person. You can if you wish send the Nomination Form under confidential cover direct to the ITB Pension Funds’ Office.

The Trustee will take account of your wishes, but the final decision as to distribution of the sum payable rests with the Trustee. This ensures that the payment does not form part of your estate, and so does not give rise to inheritance tax. The lump sum itself will be tax-free, provided that it does not exceed your available Lump Sum and Death Benefit Allowance. Any excess over your Lump Sum and Death Benefits Allowance will be treated as income and subject to a charge to income tax at your marginal rate.

Note, for Death in Service cover to commence on the date of joining, ITB’s insurance provider normally requires members to:

(i) have joined the DC Section of the Scheme within the first 6 months of becoming eligible to become a member and,

(ii) be ‘actively at work’, i.e. in active employment, physically and mentally able to perform all duties associated with your normal job. If you are not ‘actively at work’ on the date of joining, you will be advised further by the ITB Pension Funds and/or your Employer.