In the event of your death, your pension will go to your spouse, your dependent children, or your named beneficiaries. How and when your loved ones receive your pension will vary depending on the following scenarios:
Scenario 1: You died after you began receiving your pension payments, and you have a spouse In this scenario, the entirety of your pension will be paid to your spouse.
Scenario 2: You died after you began receiving your pension payments, and you have a spouse and dependent children
In this scenario, your spouse will receive half of your pension. The other half must be held for the care and education of your children until they reach the age of 23 or cease their full-time education (whichever is earlier).
Scenario 3: You died before you began receiving your pension payments
If you die before your pension payments begin, your spouse is entitled to your pension immediately or deferred, if they wish. The value of this should be at least equal to the amount of the value of the deferred pension.
Scenario 4: You died, and you do not have a spouse, but you have dependent children
All of your money will be held for your children’s care and education until they reach the age of 23 or cease full-time education (whichever comes first). After this, your remaining pension will be paid in equal lump sums to each child.
Scenario 5: You died, and you do not have a spouse, and you do not have dependent children
In this scenario, your money will be paid in a lump sum(s) to your named beneficiaries or estate.
Pensions may be tricky to understand sometimes, but you have a right to understand what happens to your money. Chamber Pension’s workplace FAQ sessions are an excellent chance for employers and employees to ask any questions relating to their pension. Book your free FAQ session today at admin@pensions.ky.