Survivor’s lifetime annuity
It can be set as a joint annuity with the contingent income being paid to a dependent or nominee
A dependent, nominee or successor can use pension funds to purchase a dependent’s, nominee’s or successor’s lifetime annuity:
- a dependant or nominee: the purchase will arise following the death of the member and so can be made from either uncrystallised/unused funds or from undrawn funds (i.e. those held in a drawdown contract); and
- a successor: the purchase will arise following the death of a dependant or nominee and so can only be made from undrawn
Member dies
Dependent, Nominee or Successor dies
You should note from this table that BCE 5D only occurs where:
- the member is aged under 75 at the time of their death; and
- the member had uncrystallised pension benefits; and
- these benefits are designated into a dependant’s or nominee’s lifetime annuity within the two-year