How is the lump sum calculated if I die within 5 years of taking pension benefits?
A. If a pensioner dies within 5 years of taking pension benefits, a Supplementary Death Grant (SDG) is payable which calculated as follows: The SDG = AR – AP where: AR is 5 times the annual rate of pension payable on death, ignoring any reduction due to abatement. The annual rate of pension is the net amount of pension payable after any reduction due to an actuarial reduction or the conversion of pension to take a higher retirement lump sum. AP is the amount of this pension which has been paid up to the member’s date of death.
