What happens to your pension benefits when you die?
(5 min read)
People often wonder what happens to their pension benefits when they die. This FAQ explains the death benefits payable from the Defined Contribution (‘DC’) Section of the Fund, what you need to do to tell the Trustee of the Fund who you would like these to be paid to, and any tax considerations.
If you also have legacy benefits in the Defined Benefit (‘DB’) sections of the Fund, additional death benefits will be payable in accordance with the Rules of the Fund.
Your frequently asked questions
What happens if I die in service?
Should you die while you’re employed by MMC, your beneficiaries will receive a lump sum death benefit. This lump sum is made up of a life assurance payment and the total value of your DC Section pension savings. Your level of life assurance cover is a multiple of your pensionable salary, chosen by you each year and confirmation of which can be found in Prosper.
What happens if I die before retirement but after leaving MMC?
If you are a deferred member of the DC Section and no longer employed by MMC, and you have kept your DC Section pension savings in the Fund, the total value of your DC Section pension savings will be paid to your beneficiaries.
Who will receive the death benefit?
It’s up to the Trustee to determine the beneficiaries of your lump sum death benefit. To help the Trustee with this decision, it’s vital that you nominate your beneficiaries by making an Expression of Wish. You can do this by logging into OneView, or you can find an Expression of Wish Form on the Fund website to complete and return by email or post.
This video shows you a step-by-step guide for how to do this on OneView.
Will the Trustee always follow my Expression of Wish?
The Trustee isn’t bound by your Expression of Wish but will consider it carefully alongside other information like your will and any information provided by your representative who notifies the Trustee of your death. Completing an Expression of Wish makes it much easier for the Trustee to decide how to pay the death benefit, which means your beneficiaries will receive the payment much more quickly.
Your Expression of Wish form will be kept securely and is completely confidential.
Who can I include in my Expression of Wish?
You can include anyone in your Expression of Wish. They don’t need to be a relative. For example, you could leave your pension savings to a friend, a charity or another Trust. However, if you want to include a Trust, you can’t do this on OneView – you would need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post.
What should I do if I have more than one pension benefit in the Fund?
If you have more than one pension benefit on OneView (for example, you also have benefits in the DB sections of the Fund), your Expression of Wish will automatically apply to all benefits listed on OneView.
If you want to record separate wishes for each pension benefit, you’ll need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post
What should I do if my wishes can’t be accommodated by the options available on OneView?
If you want to select an approach that isn’t covered by the list on OneView, you’ll need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post.
For example, if you wanted to:
Pay my benefits 100% to Person A but if they are deceased then pay 50% to Person B and 50% to Person C.
Then this would need to be documented in this way.
Can my beneficiaries be aged 18 or under?
Yes. If you choose to nominate one or more children in your Expression of Wish, the Trustee is able to assist the next of kin with setting up a trust, if required.
Will the Trustee also take my will into account when determining my beneficiaries?
Yes, the Trustee will take any relevant information into account when determining your beneficiaries, including your will. It’s recommended that you make a will to ease the administration of your estate for your survivors and help the Trustee to follow your wishes. Assistance and advice in drawing up a will can be obtained from a solicitor, or from a professional financial adviser. If you’re currently employed by MMC, a will-writing service is available through Prosper.
Are there any tax implications I should be aware of?
At present, pension savings are generally not included when working out the total value of your estate for inheritance tax (IHT) purposes. However, Rachel Reeves, Chancellor of the Exchequer, announced in the Autumn Budget 2024 that from April 2027, most lump sum death benefits from pension schemes (and any unused DC pension savings) will be included when calculating the value of your estate for IHT purposes, unless they are paid to a qualifying charity.
This means that it’s proposed that the value of your pension savings when you die will be added to your other assets to calculate whether your estate will pay IHT. If you name your spouse or civil partner in your Expression of Wish, they’ll inherit your pension savings tax-free. However, if you nominate someone else – a child for instance – there could be 40% tax to pay if your overall estate exceeds the nil rate band.
The Government held a consultation, which finished in January 2025, on this change. The Trustee of the Fund and MMC will review the implications for the Fund and its members, and provide further information and guidance following the outcome of this consultation.
You can find out more about pensions and taxation at www.moneyhelper.org.uk.
Who should I contact if I have any further questions?
If you still have questions after reading this FAQ, please contact Aptia, our administrators, at pensionuk.aptia-group.com
First published July 2025