What Happens to My Teachers’ Pension When I Die? Death Benefits Explained

Find out what happens to your teachers’ pension when you die. Learn about lump sum payments, survivor pensions, and how to nominate beneficiaries.

The Teachers’ Pension Scheme (TPS) provides more than just retirement income—it also offers death benefits to support your loved ones when you pass away. These benefits ensure that your spouse, partner, or dependents may receive financial support after your death.

The amount and type of benefits your beneficiaries receive depend on your pension scheme membership, years of service, and whether you were still working, retired, or had deferred your pension at the time of death. Understanding what happens to your teachers’ pension when you die can help you plan for your family’s financial future and ensure that they receive any benefits they are entitled to.

What Death Benefits Are Provided by the Teachers’ Pension Scheme?

The Teachers' Pension Scheme offers different benefits depending on whether you are still working, have retired, or left teaching. These benefits may include:

  • A lump sum death grant (a one-off payment to your beneficiaries).

  • A survivor’s pension (paid to a spouse, civil partner, or nominated partner).

  • Dependent children’s pensions (support for eligible children).

The exact amount and type of benefit depend on which section of the Teachers' Pension Scheme you were in before you passed away.

Death Benefits if You Die While Still Working

If you die while actively working as a teacher, your beneficiaries will receive:

1. Lump Sum Death Grant

  • A tax-free lump sum equal to three times your annual salary at the time of death.

  • Paid to your nominated beneficiary, spouse, or civil partner.

  • If no nomination is made, the lump sum is usually paid to your estate.

2. Survivor’s Pension

  • A pension for your spouse, civil partner, or nominated partner.

  • Based on your service and contributions to the scheme.

  • If you were in the Final Salary scheme, it is calculated as 1/160th of your final salary per year of service.

  • If you were in the Career Average (CARE) scheme, it is based on 37.5% of your accrued pension.

3. Dependent Children’s Pension

  • If you have children under 23 years old, they may receive a dependent child’s pension.

  • The amount depends on how many children you have and your pension benefits at the time of death.

Death Benefits if You Die After Retirement

If you die after retiring and are already receiving your pension:

1. Survivor’s Pension

  • Your spouse, civil partner, or nominated partner will receive a portion of your pension for the rest of their life.

  • Typically 50% of your pension for those in the Final Salary scheme or 37.5% for the Career Average scheme.

2. Lump Sum Death Grant

  • If you die within five years of retiring, and you have not yet received five years’ worth of pension payments, the remaining balance may be paid as a lump sum to your beneficiaries.

3. Children’s Pension

  • If you have eligible dependent children under 23, they may receive a children’s pension based on your accrued benefits.

Death Benefits if You Leave Teaching But Haven’t Retired Yet

If you leave teaching but have a deferred pension (not yet claimed your pension), your beneficiaries will receive:

  • A lump sum death grant equal to 2.25 times your deferred pension.

  • A survivor’s pension for your spouse, civil partner, or nominated partner.

  • Dependent children’s benefits if applicable.

Who Can Receive Your Teachers’ Pension Benefits?

Your teachers’ pension benefits can be paid to:

  1. Spouse or Civil Partner – Automatically entitled to survivor benefits.

  2. Nominated Partner – If you are unmarried but in a long-term relationship, you must officially nominate your partner for them to receive benefits.

  3. Children Under 23 – Eligible for a dependent child’s pension.

  4. Other Beneficiaries – You can nominate a beneficiary for the lump sum death grant. If no nomination is made, it will usually go to your estate.

How to Nominate Someone for Your Death Benefits

To ensure your lump sum death grant is paid to the right person:

  • Log into your Teachers’ Pension Online (My Pension Online) account.

  • Complete the death grant nomination form.

  • Keep your nomination up to date, especially after major life events like marriage, divorce, or having children.

Can Your Teachers’ Pension Be Inherited?

Your Teachers' Pension cannot be fully inherited like a private pension, but your spouse, civil partner, or nominated partner may receive a survivor’s pension. The lump sum death grant is tax-free if paid within two years of death.

Final Thoughts

When a teacher dies, their pension does not simply disappear. The Teachers’ Pension Scheme provides valuable benefits to help financially support their loved ones. Whether it’s a lump sum payment, a survivor’s pension, or support for dependent children, understanding these benefits ensures you can plan ahead for your family’s future.

To make sure your loved ones receive what they are entitled to, it is important to nominate beneficiaries, keep records updated, and understand your scheme’s rules. If you are unsure about your pension entitlements, contacting Teachers’ Pensions or a financial adviser can provide guidance.