Lump sum death benefit12
1
This regulation applies where a person who is paying death benefit contributions or further contributions under regulation 5(5) dies and the lump sum secured by those contributions is obtained by the Secretary of State from the Company.
2
If at the time of the death no election under regulation 5(3) or corresponding election under regulation 6(3) had effect, the lump sum becomes payable.
3
Subject to paragraphs (4) and (5), if at the time of the death such an election had effect–
a
the Secretary of State is to apply the pension element in accordance with any notification given under regulation 5(4), and
b
the balance of the lump sum becomes payable.
4
If at the time of the death any person named in a notification given under regulation 5(4) had died or ceased to be a dependant, the proportion of the pension element that was to have been applied to the purchase of a pension for him–
a
ceases to be part of the pension element, and
b
is to be added to the balance becoming payable under paragraph (3)(b).
5
If at the time of the death no notification had been given under regulation 5(4), the Secretary of State is to apply the pension element to the purchase of pensions for all dependants, proportionate to the long-term pensions payable to them under the family benefit provisions.
6
References in this regulation to a notification given under regulation 5(4) include references to such a notification as varied by an election under regulation 6(2)(b) or (3).