Blog
A deep-dive into a variety of pension topics to help you understand and learn more about your pension and the Scheme.
15/9/2025
Editorial
<p>It isn’t a cheerful topic, but it’s an important one - especially if you want to make sure the ones you care about are looked after. <br></p><p>In a nutshell, when you die, the ones closest to you could receive part of your pension benefits. However, who is eligible for what portion of it depends on a few quite important things:<br></p><ul><li>your membership status at the time of your death </li><li>their relationship to you prior to your death</li><li>whether they were included in your nomination or not<br></li></ul><p>We break it all down in this blog.</p><p> </p><h3>First things first – your membership status</h3><p>The benefits your family or dependants may receive depend on your membership status at the time of your death i.e. whether: <br></p><ul><li>you’re still paying into your pension (active member)</li><li>you’re no longer contributing towards your rail pension (preserved member), or </li><li>you’re already drawing it (retired member)<br></li></ul><p>Here’s a breakdown of what typically happens in each case:<br></p><h6>Active members <br></h6><p>If you die while you are still working and paying into the Railways Pension Scheme (RPS), the following death benefits could be paid out to the ones closest to you:<br></p><ul><li>A tax-free lump sum death benefit – this can be up to 4 times your pensionable salary, depending on the rules of the Section you’re a member of. For more information, check your member guide when you <a href="/my-rps">log into your myRPS account</a>. If you’ve saved extra with Additional Voluntary Contributions (AVCs), the value of your AVC pot may also be paid.<del cite="mailto:Hannah%20Blowers" datetime="2025-09-09T16:56"> </del></li><li>A spouse/civil partner’s pension - your spouse/civil partner could receive a pension from the Scheme upon your death. The amount they receive is normally around 50% of the pension you had built up at the time of death, though this percentage varies slightly depending on the Section you’re a member of. They will receive less pension if they are younger than you by 10 years or more. </li><li>Eligible child’s pensions - if certain criteria is met, pensions may also be paid to the two youngest dependent children. <a href="/my-rps">Check your member guide for more details</a><a id="_anchor_2" href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/What%20happens%20to%20my%20pension%20when%20I%20die/TSR8159%20-HB%20&amp;%20AYB%20comments%20(1)%20-%20Copy.docx#_msocom_2" name="_msoanchor_2" data-sf-ec-immutable=""></a>.</li><li>A dependant’s pension – this is paid to a person who depended on you financially for a minimum of 2 years prior to your death. The value of their pension may vary depending on circumstances and will reduce if the eligible dependant is younger than you by 10 years or more.<a id="_anchor_3" href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/What%20happens%20to%20my%20pension%20when%20I%20die/TSR8159%20-HB%20&amp;%20AYB%20comments%20(1)%20-%20Copy.docx#_msocom_3" name="_msoanchor_3"><br data-sf-ec-immutable=""></a></li></ul><h6>Preserved members<br></h6><p>If you’ve left railway employment but haven’t yet reached retirement age and are keeping your pension preserved in the RPS, there are death benefits that could potentially be paid to your dearest and nearest:<br></p><ul><li>A tax-free lump sum death benefit – this may be paid and will be based on the value of your preserved pension</li><li>A spouse/civil partner’s pension</li><li>Eligible child’s pensions</li><li>A dependant’s pension – may still be paid to a spouse, civil partner or eligible children </li></ul><h6>Retired members<br></h6><p>If you die after taking your pension and you pass away, the following death benefits may be paid:<br></p><ul><li>A tax-free lump sum death benefit – this may be paid only if you die within 5 years of retiring and haven’t received the full value of your pension yet</li><li>A spouse/civil partner’s pension will usually be paid – commonly around 50% of your pension.</li><li>Eligible child’s pensions </li><li>A dependant’s pension<br></li></ul><p>Rules vary by section, so check your member guide for more information – it’s in your myRPS account, under ‘My Library’.<br></p><p>There’s also some useful information on <a href="/defined-benefit-members/Im-taking-my-pension/my-pension-when-I-die">the my pension when I die page</a>.</p><h3> </h3><h3>Complete your nominations</h3><p>As a member of the RPS, you are part of one of the UK’s largest and most well-structured pension schemes – and that means your loved ones have a degree of security built in. <br></p><p>To make the most of it, make sure you complete and keep your nominations up-to-date. If you haven’t yet completed them, do it now! <br></p><p>By nominating, you essentially tell the Trustee of the RPS who you’d like to receive a lump sum death benefit in the event of your death. While it’s ultimately a decision of the Trustee, they will consider your wishes. <br></p><p>To nominate, <a href="/my-rps">log into your myRPS account</a><a id="_anchor_5" href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/What%20happens%20to%20my%20pension%20when%20I%20die/TSR8159%20-HB%20&amp;%20AYB%20comments%20(1)%20-%20Copy.docx#_msocom_5" name="_msoanchor_5" data-sf-ec-immutable=""></a>. You can check and update your nominations at any time in your online account.<br></p><p>You might want to inform your family about your RPS membership so they can consider it following your death. </p><p> </p><h3>Tax implications</h3><p>Lump sum death benefits are usually paid tax-free if: <br></p><ul><li>you die before age 75, and </li><li>within 2 years of the Trustee being notified of your death<br></li></ul><p>If you die after age 75 or the lump sum death benefits paid outside 2 years of the Trustee being notified of your death, beneficiaries may have to pay income tax on any lump sum received.<br></p><p>Pensions paid to spouses and/or children are taxable as income in the usual way.</p><div><div><div id="_com_1"><a href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/What%20happens%20to%20my%20pension%20when%20I%20die/TSR8159%20-HB%20&amp;%20AYB%20comments%20(1)%20-%20Copy.docx#_msoanchor_1" data-sf-ec-immutable=""></a></div></div></div>
<p>It isn’t a cheerful topic, but it’s an important one - especially if you want to make sure the ones you care about are looked after. <br></p><p>In a nutshell, when you die, the ones closest to you could receive part of your pension benefits. However, who is eligible for what portion of it depends on a few quite important things:<br></p><ul><li>your membership status at the time of your death </li><li>their relationship to you prior to your death</li><li>whether they were included in your nomination or not<br></li></ul><p>We break it all down in this blog.</p><p> </p><h3>First things first – your membership status</h3><p>The benefits your family or dependants may receive depend on your membership status at the time of your death i.e. whether: <br></p><ul><li>you’re still paying into your pension (active member)</li><li>you’re no longer contributing towards your rail pension (preserved member), or </li><li>you’re already drawing it (retired member)<br></li></ul><p>Here’s a breakdown of what typically happens in each case:<br></p><h6>Active members <br></h6><p>If you die while you are still working and paying into the Railways Pension Scheme (RPS), the following death benefits could be paid out to the ones closest to you:<br></p><ul><li>A tax-free lump sum death benefit – this can be up to 4 times your pensionable salary, depending on the rules of the Section you’re a member of. For more information, check your member guide when you <a href="/my-rps">log into your myRPS account</a>. If you’ve saved extra with Additional Voluntary Contributions (AVCs), the value of your AVC pot may also be paid.<del cite="mailto:Hannah%20Blowers" datetime="2025-09-09T16:56"> </del></li><li>A spouse/civil partner’s pension - your spouse/civil partner could receive a pension from the Scheme upon your death. The amount they receive is normally around 50% of the pension you had built up at the time of death, though this percentage varies slightly depending on the Section you’re a member of. They will receive less pension if they are younger than you by 10 years or more. </li><li>Eligible child’s pensions - if certain criteria is met, pensions may also be paid to the two youngest dependent children. <a href="/my-rps">Check your member guide for more details</a><a id="_anchor_2" href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/What%20happens%20to%20my%20pension%20when%20I%20die/TSR8159%20-HB%20&amp;%20AYB%20comments%20(1)%20-%20Copy.docx#_msocom_2" name="_msoanchor_2" data-sf-ec-immutable=""></a>.</li><li>A dependant’s pension – this is paid to a person who depended on you financially for a minimum of 2 years prior to your death. The value of their pension may vary depending on circumstances and will reduce if the eligible dependant is younger than you by 10 years or more.<a id="_anchor_3" href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/What%20happens%20to%20my%20pension%20when%20I%20die/TSR8159%20-HB%20&amp;%20AYB%20comments%20(1)%20-%20Copy.docx#_msocom_3" name="_msoanchor_3"><br data-sf-ec-immutable=""></a></li></ul><h6>Preserved members<br></h6><p>If you’ve left railway employment but haven’t yet reached retirement age and are keeping your pension preserved in the RPS, there are death benefits that could potentially be paid to your dearest and nearest:<br></p><ul><li>A tax-free lump sum death benefit – this may be paid and will be based on the value of your preserved pension</li><li>A spouse/civil partner’s pension</li><li>Eligible child’s pensions</li><li>A dependant’s pension – may still be paid to a spouse, civil partner or eligible children </li></ul><h6>Retired members<br></h6><p>If you die after taking your pension and you pass away, the following death benefits may be paid:<br></p><ul><li>A tax-free lump sum death benefit – this may be paid only if you die within 5 years of retiring and haven’t received the full value of your pension yet</li><li>A spouse/civil partner’s pension will usually be paid – commonly around 50% of your pension.</li><li>Eligible child’s pensions </li><li>A dependant’s pension<br></li></ul><p>Rules vary by section, so check your member guide for more information – it’s in your myRPS account, under ‘My Library’.<br></p><p>There’s also some useful information on <a href="/defined-benefit-members/Im-taking-my-pension/my-pension-when-I-die">the my pension when I die page</a>.</p><h3> </h3><h3>Complete your nominations</h3><p>As a member of the RPS, you are part of one of the UK’s largest and most well-structured pension schemes – and that means your loved ones have a degree of security built in. <br></p><p>To make the most of it, make sure you complete and keep your nominations up-to-date. If you haven’t yet completed them, do it now! <br></p><p>By nominating, you essentially tell the Trustee of the RPS who you’d like to receive a lump sum death benefit in the event of your death. While it’s ultimately a decision of the Trustee, they will consider your wishes. <br></p><p>To nominate, <a href="/my-rps">log into your myRPS account</a><a id="_anchor_5" href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/What%20happens%20to%20my%20pension%20when%20I%20die/TSR8159%20-HB%20&amp;%20AYB%20comments%20(1)%20-%20Copy.docx#_msocom_5" name="_msoanchor_5" data-sf-ec-immutable=""></a>. You can check and update your nominations at any time in your online account.<br></p><p>You might want to inform your family about your RPS membership so they can consider it following your death. </p><p> </p><h3>Tax implications</h3><p>Lump sum death benefits are usually paid tax-free if: <br></p><ul><li>you die before age 75, and </li><li>within 2 years of the Trustee being notified of your death<br></li></ul><p>If you die after age 75 or the lump sum death benefits paid outside 2 years of the Trustee being notified of your death, beneficiaries may have to pay income tax on any lump sum received.<br></p><p>Pensions paid to spouses and/or children are taxable as income in the usual way.</p><div><div><div id="_com_1"><a href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/What%20happens%20to%20my%20pension%20when%20I%20die/TSR8159%20-HB%20&amp;%20AYB%20comments%20(1)%20-%20Copy.docx#_msoanchor_1" data-sf-ec-immutable=""></a></div></div></div>
Blog
What happens to my pension when I die?
It’s natural to wonder what would happen to your pension benefits following your death.
It isn’t a cheerful topic, but it’s an important one - especially if you want to make sure the ones you care about are looked after.
In a nutshell, when you die, the ones closest to you could receive part of your pension benefits. However, who is eligible for what portion of it depends on a few quite important things:
- your membership status at the time of your death
- their relationship to you prior to your death
- whether they were included in your nomination or not
We break it all down in this blog.
First things first – your membership status
The benefits your family or dependants may receive depend on your membership status at the time of your death i.e. whether:
- you’re still paying into your pension (active member)
- you’re no longer contributing towards your rail pension (preserved member), or
- you’re already drawing it (retired member)
Here’s a breakdown of what typically happens in each case:
Active members
If you die while you are still working and paying into the Railways Pension Scheme (RPS), the following death benefits could be paid out to the ones closest to you:
- A tax-free lump sum death benefit – this can be up to 4 times your pensionable salary, depending on the rules of the Section you’re a member of. For more information, check your member guide when you log into your myRPS account. If you’ve saved extra with Additional Voluntary Contributions (AVCs), the value of your AVC pot may also be paid.
- A spouse/civil partner’s pension - your spouse/civil partner could receive a pension from the Scheme upon your death. The amount they receive is normally around 50% of the pension you had built up at the time of death, though this percentage varies slightly depending on the Section you’re a member of. They will receive less pension if they are younger than you by 10 years or more.
- Eligible child’s pensions - if certain criteria is met, pensions may also be paid to the two youngest dependent children. Check your member guide for more details.
- A dependant’s pension – this is paid to a person who depended on you financially for a minimum of 2 years prior to your death. The value of their pension may vary depending on circumstances and will reduce if the eligible dependant is younger than you by 10 years or more.
Preserved members
If you’ve left railway employment but haven’t yet reached retirement age and are keeping your pension preserved in the RPS, there are death benefits that could potentially be paid to your dearest and nearest:
- A tax-free lump sum death benefit – this may be paid and will be based on the value of your preserved pension
- A spouse/civil partner’s pension
- Eligible child’s pensions
- A dependant’s pension – may still be paid to a spouse, civil partner or eligible children
Retired members
If you die after taking your pension and you pass away, the following death benefits may be paid:
- A tax-free lump sum death benefit – this may be paid only if you die within 5 years of retiring and haven’t received the full value of your pension yet
- A spouse/civil partner’s pension will usually be paid – commonly around 50% of your pension.
- Eligible child’s pensions
- A dependant’s pension
Rules vary by section, so check your member guide for more information – it’s in your myRPS account, under ‘My Library’.
There’s also some useful information on the my pension when I die page.
Complete your nominations
As a member of the RPS, you are part of one of the UK’s largest and most well-structured pension schemes – and that means your loved ones have a degree of security built in.
To make the most of it, make sure you complete and keep your nominations up-to-date. If you haven’t yet completed them, do it now!
By nominating, you essentially tell the Trustee of the RPS who you’d like to receive a lump sum death benefit in the event of your death. While it’s ultimately a decision of the Trustee, they will consider your wishes.
To nominate, log into your myRPS account. You can check and update your nominations at any time in your online account.
You might want to inform your family about your RPS membership so they can consider it following your death.
Tax implications
Lump sum death benefits are usually paid tax-free if:
- you die before age 75, and
- within 2 years of the Trustee being notified of your death
If you die after age 75 or the lump sum death benefits paid outside 2 years of the Trustee being notified of your death, beneficiaries may have to pay income tax on any lump sum received.
Pensions paid to spouses and/or children are taxable as income in the usual way.
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