Notifying an Employer or Pension Provider After a Death

If the person who died was still working, or receiving a pension, their employer or pension provider will need to know. This isn't just a courtesy call, there's often money owed to the estate or family that won't be paid out until they're told.

If They Were Still Working

Contact their employer, ideally speaking to HR or their line manager, as soon as you reasonably can. It's worth asking about:

• Any final salary or wages owed, including unused holiday pay
• A death-in-service benefit, if their employer offered one. This is often overlooked, but it can be substantial, typically 2 to 4 times their annual salary, paid out separately from any pension. It's usually paid at the discretion of the pension scheme's trustees, based on a nomination or "expression of wish" form the person may have filled in when they joined.
• A workplace pension scheme they were paying into, and how to make a claim on it
• A P45, which you'll need for sorting out their final tax affairs
• Whether the employer offers an Employee Assistance Programme, some extend bereavement support to family members too

Some employers can be slow to process death-in-service claims, if you haven't heard back within a couple of weeks, it's reasonable to follow up.

If They Were Already Retired and Drawing a Pension

If they'd already retired, you'll need to contact each pension provider directly rather than an employer. It's worth checking their paperwork for an expression of wish or nomination form, since this guides who the pension trustees decide to pay.

What happens next depends on the type of pension:

• Defined contribution pensions (a personal pot built up over their working life) can usually be passed on to nominated beneficiaries, often tax-free if they died before age 75.
• Defined benefit pensions (workplace pensions paying a guaranteed income based on salary and years worked) don't leave a pot to inherit, but most schemes pay death benefits, such as a dependant's pension for a partner or children, or a refund of contributions if they died within two years of joining.
• State Pension doesn't usually pass to anyone else. If they'd already claimed it, payments will stop, though a spouse or civil partner may be able to inherit part of it in some circumstances.

If you're not sure which pensions they held, particularly from older jobs, the government's Pension Tracing Service can help track down lost workplace and personal pensions using an employer or provider name.

What You'll Need

Whether it's an employer or a pension provider, they'll typically ask for:

• A certified copy of the death certificate
• The person's employee or membership number, if known
• Your relationship to the person, and whether you're the executor or administrator of the estate

Frequently Asked Questions

Is the death-in-service payout automatically part of the estate?

Usually not. It's typically paid at the discretion of the scheme's trustees, based on the nomination form, rather than being distributed according to the will. This means it can sometimes bypass the estate entirely and go straight to the person named.

What if I don't know all the pensions they had?

Use the Pension Tracing Service, a free government tool that searches by employer or pension provider name, useful if you only remember where someone used to work rather than the scheme's exact name.

How long does it take for death benefits to be paid?

It varies by provider, but 4 to 8 weeks after all the required documents and certificates have been received is fairly typical. Larger lump sum payments sometimes require a Grant of Probate first.

Do I need to contact HMRC separately about their final tax affairs?

If you've used the Tell Us Once service, HMRC is one of the organisations it notifies automatically. If not, you'll need to contact them directly, the P45 from their employer will be useful for this.

Related reading: Using the Tell Us Once Service After a Death · Checking for a Will After a Death