Allocating pension benefits after death

| 15/08/2017

If I die before I receive my pension what happens with that money?

Auntie’s answer: Your question actually lends itself to several scenarios, all of which were explained by an official with the Department of Labour and Pensions (DLP).

If you are married, then under the law your spouse automatically becomes your beneficiary. In the case of your death occurring before receiving your pension, as you describe, your spouse could choose to receive the benefits immediately or on a deferred basis. “Once the payments commence, the pension benefit would be paid to the spouse on, at least, an annual basis, which is the same method that would have been paid to the member,” the DLP official explained.

In the case of there being dependent children, they would be entitled to at least a portion of your pension. “If the member is married with dependent children, then the pension benefit would be split 50% to the spouse and 50% to the dependent children. If the member is unmarried and has dependent children, then all of the pension benefit would be used for the maintenance, benefit and education of the dependent children.”

However, if you are neither married nor have any dependent children, you would have had to designate someone else as your beneficiary who, after your death, would be entitled to receive your pension benefit, according to your instructions on the enrolment form.

The official added some important advice. “Please note when a member enrols in their pension plan, they are asked to name a beneficiary of their pension assets. It is incumbent on the pension plan member to keep their information with the pension plan administrator up to date including their own contact information as well as their beneficiary information, including their marital status and details on their dependent children.”

Category: Ask Auntie, Pension Questions

Comments (9)

Trackback URL | Comments RSS Feed

  1. Anonymous says:

    This pension is mysterious a relativr died and left funds for benefits when the beneficiaries went to investigate was told they couldnt get there funds they would have ti transfer to current pension or wait till they turn 65

  2. Anonymous says:

    Interesting thing that nobody is talking about, and just glazed over above…

    “Once the payments commence, the pension benefit would be paid to the spouse on, at least, an annual basis, which is the same method that would have been paid to the member,”

    So we are not entrusted to manage our own savings, not entitled to take a lump sum when we leave, or if we stay for any reason, yet the annual withdrawal is just that… An annual withdrawal.

    Its a lot easier trying to squeeze a few extra days out of that $1000 a month payment that will arrive on the first of the month.

    How will anyone be able to budget when they get that $12,000 check in their hands just after Christmas. It will be gone by March.

  3. A nony mouse says:

    Depends on which pension plan you are with… try getting XXXX to even reply to your request for a form… its a nightmare! Only one of the pension plans allows you to submit forms online – the rest try and obscure your right to claim by not even providing you with forms to make a claim and then require you to jump through hoops to claim what is yours!

    • Anonymous says:

      Yes all the applying for pension and form filling out has to be done in person! I had to make an appointment for 2 weeks later to stand at a counter and have a form completed in pen so I could sign it and receive my pension payment 2 months later. Now the 2 months are up but the payment has not appeared so more phoning to do. I’m 60 and still working so can thankfully start to take my money out now and invest it better myself.

  4. Anonymous says:

    Christ, so all these young Filipino girls you see with these old men, including a former primary school principal who should know better, are going to get their pensions after they die in the not too distant future?

    • Anonymous says:

      Yeah? And what has it got to do with you? Could it be you’re an old man yourself who salivates after these young Filipino girls but they’re not having you ; or, you’re a woman who wants one of these old men who may die in the not too distant future but is having none of you; or, did you just have a bitter melon for dinner?

    • Anonymous says:

      Sucks to be you. If you pardon the pun.

    • Lol says:


  5. Serioustalk says:

    The Cayman Islands is an Associated Member of CARICOM. What is our yearly contributions to the organization and what benefits do the Cayman Islands receive from being an Associated Member?