The Railways Pension Scheme Order 1994

Discretionary Death Benefit Trusts

18C  The lump sum death benefit shall be paid to the Member’s personal representatives unless the Member notifies the Trustee in writing that he wants the lump sum to be applied as set out in the following paragraph.

If the Member so notifies the Trustee, the lump sum death benefit shall be paid to one or more of the Beneficiaries (as defined below) or used for their benefit in such shares as the Trustee decides. But if the benefit is not paid within 2 years of the Member’s death, it shall be paid to the Member’s personal representatives, unless there is no will of the Member under which it shall pass and the successor on the Member’s intestacy is the Crown or the Duchy of Lancaster or Cornwall, in which case no benefit shall be payable. Interest shall only be added if the Trustee so decides and Inland Revenue limits are not exceeded.

The “Beneficiaries” are the Member’s widow or widower, the Member’s grandparents and their descendants, his spouse’s grandparents and their descendants and the spouses, widows or widowers of those descendants, the Member’s Dependants, any person (except the Crown or the Duchy of Lancaster or Cornwall) with an interest in the Member’s estate and any person nominated by the Member in writing to the Trustee.

So long as no–one other than Beneficiaries can become entitled, the Trustee may:

(a) direct that all or part of the lump sum be held by itself or other trustees on such trusts (including discretionary trusts) and with such powers and provisions (including powers of selection and variation) as the Trustee sees fit; or

(b) direct payment of all or part of the lump sum to the trustee of any other existing trust.

A BR Member who made an election under rule 41 of the BR Rules shall be treated as having notified the Trustee under this Rule 18C.