Pension considerations if you are terminally ill
If you have a terminal illness, we understand what a difficult time it will be for you and your loved ones, but you may still have practical and financial affairs that you need to sort out.
It’s worth thinking about your pension and considering fully what options and choices are available. We've highlighted some of the things that you might want to think about below as well as in this printable booklet, which also includes a checklist.
Our focus is on your Local Government Pension Scheme (LGPS) pension. We suggest you contact any other pension providers you have, as your options for those pensions might be different to your LGPS pension and you could have different choices to make.
You might also have questions about other financial matters, such as about making a will or sorting out debts. There are lots of organisations that can help you with this. We’ve listed some of these below together with a link to their websites:
- Citizens Advice
- MoneyHelper | Free and impartial help with money, backed by the government
- Macmillan Cancer Support | End of life
Things to think about
What pension you have
It is worth looking into what options you have and gaining an understanding of the implications of any decisions that you might make.
If you are still working and paying into the LGPS, then you should talk to both GMPF and your employer about the pension benefits that might be due if you die in service, and about those that would be due if you were to retire on ill health grounds before you pass away.
If you have benefits on hold, you can talk to both GMPF and your former employer about the benefits that might be due if you die before drawing your pension, and those that would be due if your benefits were brought into payment early.
Everyone’s circumstances and pension pots are different, and your employer or former employer can help you to understand what the financial implications are and what choices you might have.
If transferring out might be a better option
Leaving your benefits in the LGPS is going to be the better option for you in most cases. The LGPS provides valuable life cover and benefits for those who are dependent on you, such as a spouse, cohabiting partner and young children. However, there could be certain circumstances where transferring your benefits to another pension scheme may give you different benefits that you feel would be more valuable to you in your current situation. We would strongly recommend getting some support from an independent financial advisor if this is something that you think might benefit you.
What benefits you are leaving behind and to whom
It is also worth finding out about what benefits will be due following your death.
There are two types of benefits that we might pay.
The first is what’s called a ‘dependant’s pension’. This is a regular payment to someone dependent on you at the time of your death. For example, we would pay this to a spouse, registered civil partner, or, subject to certain qualifying conditions, an eligible cohabiting partner. We may also pay children who are below a certain age or who meet other criteria. You can find out more about these qualifying conditions and criteria on our 'What death benefits we pay' page.
The second is a lump sum death grant. We usually pay this to the person or persons that you choose to nominate. If you have not let us know who you’d like to nominate, then we would urge you to do this by completing your expression of wish nomination, available in your My Pension account. Alternatively, you can contact our Customer Services team to request a lump sum expression of wish form to be posted for you to complete. If you completed your nomination a while ago, please check that it is up to date and still represents your wishes.
GMPF decides who to pay once we know that a death grant is due. The death grant does not automatically form part of your estate and is not subject to inheritance tax. Therefore, making a nomination is important so that we can look to pay the death grant in line with your wishes.
There is more information about this and dependant benefits on our website or you can call us, and we can talk through the options and post out any forms or extra information you need.
What to do if you need help
Please contact us if you want to talk through any of the options we cover here or if you need help to complete a task. And of course, you can speak to your employer or former employer too. You might also want to think about whether talking to a solicitor or independent financial advisor may be worthwhile, and if you can, talk things over with those closest to you so they understand what benefits will be due from your pension and why you have chosen to make the decisions you have. You can call our Customer Services team on 0161 301 7000 or use the 'Contact us' page.
You can find all the information from this page in this printable booklet.