The death of an employee is a difficult time not only for bereaved family members and loved ones but also for work colleagues.
Many employers will have made financial provision via a pension scheme or stand-alone group life assurance scheme to provide lump sum death in service benefits. For private sector employers, these schemes are normally established under a trust and the trustees will have a wide discretionary power to decide who receives the benefit. Similar discretionary powers are exercisable under some public service pension schemes.
The decision-making process
Under trust-based schemes, it is never right to pay out automatically to the “next of kin” of the deceased or in accordance with their expression of wishes form. It is essential to follow an appropriate process.
At Weightmans, we have extensive experience of providing support in this area. We provide legal advice on all other pension and life assurance matters too.
The wider picture
We recognise that when a colleague dies the issues faced by an employer, and particularly the HR team, are wider than paying out death in service benefits. There is a whole range of legal and practical steps to be taken in the following days, weeks and months. We work with employers to provide expert legal and practical support.
Not all employers will have experience or established procedures for dealing with the death of a colleague. Even those that do may well appreciate an opportunity for review and comparison.
Our forthcoming webinar
On Monday 30 November, we will be hosting a webinar, Death in Service: The HR perspective.
Like our previous webinars on the subject of death in service, this will include an overview of the correct process to be followed to pay out lump sum death in service benefits.
This new webinar will also include specific guidance on the employment and HR issues that arise on the death of a colleague including:
Immediate actions;
Payroll, pensions and legal compliance;
Communication and team support;
Operational transitions; and
Memorial and ongoing support.
The webinar will be of particular interest to HR professionals and members of in-house legal teams who support them.
Full details and a registration page will be published shortly.
In the meantime, if you have any queries about any legal issues relating to death in service please contact Mark Poulston.
For expert support on dealing with death in service, please contact our expert Business pensions lawyers.
