What happens next

We're sorry for your loss. We understand that dealing with someone's pension after they've died can feel overwhelming at an already difficult time.

This guide explains what happens if a Smart Pension member dies before accessing their retirement savings, what information we'll need from you, and what happens next. Our bereavement claims team is here to support you through the process and keep you informed at every stage.

Contacting Smart Pension

If a member has passed away before accessing their retirement savings, their next of kin, personal representative or employer should contact us as soon as possible.

You can notify us by:

• Telephone: 0333 666 2626
• Email: [email protected]

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Information we'll need

Providing as much information as possible when you first contact us can help us identify the member's record and begin the bereavement process more quickly.

Please provide:

• Name of the member
• Address
• Date of birth
• National Insurance number
• Date of death (if known)
• Full name of next of kin
• Contact email address and telephone number
• Smart Pension ID number (if known)

This will be changing from April 2027, you can read more here.

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What happens after you contact us?

Once we've been notified of the member's death, we'll begin reviewing their pension record and contacting anyone we need to progress the claim.

Our bereavement claims team will identify the member using the information provided and check whether all due pension contributions have been received and invested. If any contributions are outstanding, we'll contact the employer and ask them to make payment as quickly as possible before we proceed.

We'll update our records to show that the member has sadly passed away and disable account access to help protect their information.

Once all contributions have been received and invested, the pension savings will be disinvested and prepared for any future claim payment.

We'll then contact the next of kin and send a Bereavement Claim Form to complete.

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Completing the Bereavement Claim Form

The Bereavement Claim Form helps us understand the member's circumstances and identify any potential beneficiaries.

The form asks for information about:

• The deceased member
• Funeral costs and whether reimbursement is required
• The member's relationship status
• Any children, adopted children, stepchildren or anyone financially dependent on the member
• The person completing the form
• Potential beneficiaries
• Any other relevant information that should be considered as part of the claim
• Returning the form to Smart Pension
• A declaration from the person completing the form

Documents we'll need

The completed Bereavement Claim Form should be returned together with:

• A copy of the death certificate
• A copy of the member's will, if one exists
• A copy of the Grant of Probate or Letters of Administration, if available
• A copy of the funeral invoice and bank statement, if reimbursement is required
• Evidence of legal guardianship if a potential beneficiary is under 18 years old

These documents can be sent to us by email if preferred.

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How we decide who receives the pension savings

Once we've received the completed claim form and supporting documents, the case will be referred to the scheme trustees.

The trustees are responsible for deciding who should receive the pension savings. When making their decision, they may consider:

• Any expression of wish completed by the member
• The member's family circumstances
• Financial dependants
• Information provided as part of the claim
• Any other relevant information

The trustees have discretion when making their decision and will ensure the most appropriate beneficiaries receive the pension savings.

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Notification of the trustee decision

Once the trustees have reached a decision, all beneficiaries will be contacted and sent a claim payment form.

The form will ask for:

• Bank account details for payment
• Identification and Verification (ID&V) documents

This helps ensure payment is made to the correct person.

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Payment of the claim

Once we receive the completed payment claim form and all required identification documents, we'll arrange payment to the beneficiary from the trustee bank account.

The payment may be subject to tax if:

• The member was over age 75 when they died, or
• The payment is made more than two years after we were first notified of the member's death

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Confirmation of payment

Once payment has been made, the beneficiary will receive confirmation showing:

• The payment amount
• Any tax deducted

A Relevant Benefit Crystallisation Event Certificate (RBCE)

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Tax considerations

From 6 April 2024, the total amount of tax-free lump sums that can normally be received from pension savings during a person's lifetime is limited to £268,275. This is known as the Lump Sum Allowance (LSA), unless a protected higher allowance applies.

There is also a limit on the tax-free amount that can be paid following a death. This is known as the Lump Sum and Death Benefit Allowance (LSDBA). The current allowance is £1,073,100 across all pension arrangements.

Any tax-free payments made to the deceased member during their lifetime will reduce the available LSDBA.

If it is later found that the LSDBA has been exceeded, any additional tax due will normally need to be paid directly to HMRC by the beneficiary.

From April 2027, pension lump sum payments may count towards the value of your estate for inheritance tax purposes. Payments to a surviving spouse or registered charity are expected to be exempt, although HMRC has not yet confirmed the final rules.

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How long does the process take?

Every bereavement claim is different. The time required will depend on the information available, whether contributions are outstanding and whether additional evidence is needed.

We'll keep you updated throughout the process and contact you if we need any further information.

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Other situations

What if the member transferred their pension to another provider?

If the member transferred their pension savings away from Smart Pension before they died, the new pension provider will be responsible for managing any bereavement claim and paying any benefits due.

What if the member had already taken their pension savings?

If the member took all of their pension savings as a Small Fund Commutation (SFC) payment or an Uncrystallised Funds Pension Lump Sum (UFPLS), there would normally be no remaining funds available to pay as a bereavement claim.

If the member transferred their pension to another provider and was using income drawdown, the new provider would be responsible for determining whether any pension savings remained available.

If the member used their pension savings to purchase an annuity, the annuity provider would be responsible for determining whether any payments remain payable to beneficiaries.

What if the member joined Smart Retire?

If the member transferred their pension savings into Smart Retire, please contact the Smart Retire team directly:

• Telephone: 0330 174 0643
• Email: [email protected]

The Smart Retire team will check whether any pension savings remain available. Any unclaimed funds may still be payable to beneficiaries, subject to Trustee discretion and the circumstances of the claim.

If the member was over age 75 when they died, any remaining funds may be subject to tax.

If all pension savings have already been exhausted, no bereavement payment will be due.

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Need help?

We understand that dealing with a bereavement can be difficult. If you have any questions about the process or need support with a claim, please contact our bereavement claims team.

• Telephone: 0333 666 2626
• Email: [email protected]

If your enquiry relates to Smart Retire, please contact the Smart Retire team on 0330 174 0643 or email [email protected].