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Impact of death of a non-member

If a non-member who has been granted a designated benefit under a pension adjustment order (PAO) dies (prior to any decision to transfer the designated benefit to another scheme or policy), any payment to their estate depends on the circumstances.

If a PAO has been made in favour of a spouse/civil partner/qualified cohabitant and they die prior to the commencement of the designated benefit or if they die following the commencement of the designated benefit but before the member spouse/member civil partner/member qualified cohabitant, an amount must be paid to their estate within three months of death.

If a PAO has been made in favour of a dependent child and they die either before or after the commencement of the designated benefit, no payment is made and the order ceases to have effect.