NHS Pensions death claim: miss the 2-year deadline, lose 45% to tax

The NHS Pension Scheme is often the most valuable single asset an NHS worker leaves behind – more than any savings, and for many, more than the house. Around 1.7 million NHS staff and pensioners are members, and the death benefits can run to two years of salary as a lump sum, plus a lifetime income for a surviving spouse or partner.

This guide explains what benefits can be claimed, how to notify NHS Pensions of a death, what happens with the expression of wishes, and the practical steps that catch families out. It is written for spouses, partners, civil partners, and adult children dealing with a bereavement involving an NHS Pension Scheme member in England and Wales.

NHS Pensions are administered by the NHS Business Services Authority (NHSBSA), a national body that handles the scheme on behalf of the Department of Health and Social Care. Scotland has the NHS Superannuation Scheme (administered by the Scottish Public Pensions Agency) and Northern Ireland has the HSC Pension Scheme – different administrators, broadly similar principles, but separate contact routes.

Quick reference

Which NHS pension scheme?

There are three sections of the NHS Pension Scheme, and the death benefits differ between them.

1995 Section – For NHS staff who joined before 1 October 2002. A final salary scheme. Benefits are calculated based on pensionable pay at or near retirement.

2008 Section – For NHS staff who joined between 1 October 2002 and 31 March 2015 (or who opted out of the 1995 section at transition). A career average scheme using the best three years’ pay in the last ten.

2015 Scheme – The current scheme, for all new entrants from 1 April 2015. All active NHS workers were moved into this scheme by April 2022 (subject to the McCloud remedy, which protected some older members’ rights).

Many members have benefits split across more than one section. NHS Pensions calculates and pays all sections together – you do not need to work out which section applies.

Death benefits: lump sum on death

Active members (working for the NHS at time of death)

This is the headline benefit. The lump sum is calculated differently by scheme section:

For part-time staff, the lump sum is based on actual pro-rated pay, not the whole-time equivalent.

Deferred members (left the NHS but not yet drawing pension)

A smaller lump sum is payable. This is sometimes called “death in deferment”:

Pensioner members (already drawing pension at time of death)

If the member had been drawing their pension for fewer than five years, a balancing lump sum – sometimes called the five-year guarantee – may be payable. The calculation is the lesser of:

• 5× the annual pension minus the total already received in pension payments, or
• 2× pensionable pay at retirement minus any lump sum already taken at retirement

If a member had been drawing their pension for more than five years, no separate lump sum is payable on death.

The two-year rule: The lump sum must be paid within two years of NHS Pensions being notified of the death. If it is paid later, an HMRC tax charge of up to 45% can apply. Notify NHS Pensions promptly to start that clock – you can take longer to gather all the documents without losing the tax-free status.

Source: NHSBSA – Death benefit calculations (KA-04203) and NHS Pensions Survivors Guide (PDF, V12A, 04.2024). Last verified: 4 June 2026.

Death benefits: adult dependant’s pension

A regular pension is paid for life to an eligible surviving partner – spouse, civil partner, or qualifying nominated partner. The rate depends on the scheme section:

For active or deferred members, the survivor’s pension is based on what the member’s pension would have been at the date of death, typically with an enhancement. For pensioner members, it is based on the pension they were drawing (before any commutation or actuarial reduction).

Short-term pension: In the first six months after death, the surviving partner usually receives a short-term pension at the full pension rate that was being paid (or would have been paid) to the member. The long-term reduced rate begins after that.

Unmarried partners qualify only if the member completed a Partner Nomination Form (PN1) and the qualifying conditions are met – broadly, the couple were financially interdependent, free to marry or form a civil partnership, and had lived together for at least two years before the death. Without a PN1, an unmarried partner receives nothing from the adult dependant’s pension, however long the relationship.

Separated but not divorced: A legal spouse or civil partner who was separated from the member at death may still have an entitlement to the survivor’s pension under the scheme rules, even if the marriage was in breakdown. This can be a difficult situation for blended families – NHS Pensions will assess based on the legal status.

The adult dependant’s pension is payable for life and does not stop if the survivor remarries or forms a new civil partnership (unlike some older pension arrangements).

Source: BMA – Death in service and your pension and BMA – Death after retirement and your pension. Last verified: 4 June 2026.

Death benefits: children’s pension

A pension is payable to dependent children, usually up to age 23 if they remain in full-time education or training. Children who cannot earn a living because of a permanent disability present at the time of the member’s death may receive a pension beyond age 23.

The rate per child depends on whether a surviving adult dependant is also receiving a pension:

If there are more than two eligible children, the pension is shared equally across all of them, but only two receive payment at once; when the oldest child stops qualifying, the next child begins receiving their share.

Stepchildren, adopted children, and financially dependent children can qualify – not only biological children.

Source: BMA – Death after retirement and your pension. Last verified: 4 June 2026.

Expression of wishes – why it matters and what to do

NHS Pension lump sum death benefits sit outside the deceased’s estate under current rules. They are paid at the discretion of the NHSBSA scheme administrator – which means they bypass probate and, in most circumstances before April 2027, bypass inheritance tax as well.

In practice, the scheme follows the member’s recorded wishes wherever possible. Two forms are relevant:

DB2 – Lump sum on death benefit nomination (“expression of wishes”). The member uses this to nominate who should receive the lump sum and in what proportions – a spouse, an adult child, a sibling, a charity, or a combination. NHS Pensions holds these records. The nomination is advisory rather than legally binding: the administrator has discretion if circumstances have changed significantly since the form was completed (such as a separation, a new partner, or a child born since the nomination was made). That discretion is what keeps the money out of the estate for tax purposes.

PN1 – Partner Nomination Form. Used by unmarried partners to register as eligible for the adult dependant’s pension. Without this form on file, an unmarried partner has no entitlement.

What happens if no DB2 exists? NHS Pensions will usually pay the lump sum to the legal spouse or civil partner. If there is no spouse or civil partner and no nomination, the lump sum is paid to the member’s personal representatives (the executor under a will, or administrator under intestacy rules). At that point it falls into the estate – probate may be required, and inheritance tax consequences change.

Check whether a nomination exists by asking NHS Pensions when you first call. The scheme holds all records centrally and can confirm quickly whether a DB2 is on file and in whose favour. Do not assume the lump sum will automatically go to whoever the family expects.

Tell Us Once – what it covers

Tell Us Once notifies NHS Pensions for England and Wales when you report the death to the registrar. The service contacts NHS Pensions to cancel future pension payments. You do not need to call NHS Pensions separately for the initial death notification if you have used Tell Us Once.

What Tell Us Once does not do: it does not lodge a claim for the lump sum, survivor’s pension, or children’s pension. Those must be claimed actively using the NHSBSA’s dependant claim form. Think of Tell Us Once as the stop-notification; the claim for benefits is a separate step.

If the deceased was still employed by the NHS: contact their employing NHS Trust or organisation first, not NHSBSA directly. The employer’s HR or pensions team will notify NHS Pensions on your behalf. Tell Us Once still runs in the background but the employer contact is the primary route for active members.

See our Tell Us Once guide for the full list of organisations notified.

How to notify NHS Pensions and claim benefits

Step 1: Initial notification

If the deceased was still working for the NHS – contact the employing NHS Trust’s HR or pensions team first. They will stop salary, update payroll, submit the necessary pension forms to NHS Pensions, and guide you through the process.

If the deceased was retired or had left the NHS – either:

• Use Tell Us Once at the time of registering the death with the registrar, or
• Call NHS Pensions directly: 0345 121 2522 (Monday to Friday, 8am to 6pm)

Have ready: the SD (membership) number or National Insurance number, date of birth, date of death, and your relationship to the deceased.

Step 2: Receive the claim pack

Once NHS Pensions is notified, it will write to the next of kin or the executor and send the relevant claim forms. The key form is the Dependant Claim Form (or SSD9), which covers the adult dependant’s pension and children’s pension. For the lump sum, the scheme will check the DB2 nomination on file.

You can also download forms from nhsbsa.nhs.uk/member-hub/bereavements.

Step 3: Gather documents

Typical documents required:

• Death certificate – original or certified copy. A registrar provides multiple certified copies for a small fee at the time of registration. Photocopies are not accepted.
• SD number or National Insurance number – found on NHS Pensions correspondence, pension payslips, or P60
• Marriage or civil partnership certificate – if claiming as a spouse or civil partner
• PN1 confirmation – if claiming as an unmarried nominated partner
• Birth certificates for dependent children – if claiming a children’s pension
• Bank account details – for the person or persons receiving payment
• Former spouse’s death certificate – if the deceased’s prior spouse or civil partner pre-deceased them

Step 4: Submit and follow up

Return the completed forms and documents to NHS Pensions (details on the claim pack). If the claim is complex – mixed-section membership, a deferred member, or a disputed nomination – expect more correspondence. Keep copies of everything you submit.

Probate and the NHS pension lump sum

In most cases, the NHS pension lump sum does not require probate. Because it is paid as a discretionary benefit directly to the nominated beneficiary, it sits outside the estate entirely.

Probate is only likely to become relevant to the NHS pension if:

• No DB2 nomination is in place and no spouse or civil partner exists – in which case the lump sum is paid to the personal representatives and enters the estate
• The member’s total estate including other assets exceeds the probate threshold (£5,000 in England and Wales for a formal grant; the practical threshold for most banks is higher)

If the family is also dealing with probate for the rest of the estate, it is worth confirming with NHS Pensions early whether the lump sum will be paid direct to a named beneficiary or into the estate, since that affects how the probate application is structured.

Tax treatment

Lump sum death benefit: NHS pension death benefits are paid from a registered pension scheme. Provided the lump sum is paid within two years of notification, it is generally paid free of income tax. For deaths before 6 April 2027, discretionary lump sums paid to a nominated beneficiary are also generally outside the estate for inheritance tax purposes.

Death-in-service lump sums and the April 2027 IHT change: From 6 April 2027, most pension death benefits will be brought into the estate for IHT purposes. However, following government consultation, death-in-service lump sums have been explicitly excluded – they will continue to sit outside the estate for IHT. Survivor pensions (adult dependant’s and children’s) are not affected by the IHT change either.

Lump sums paid after retirement (such as the five-year guarantee lump sum where a member died shortly after retiring) are expected to fall within the new IHT scope from April 2027. The detailed secondary legislation was still being finalised at the time of writing. For a full explanation of the reform and what stays exempt, see our guide to inheritance tax on pensions.

If the deceased held other pensions or pension savings as well as the NHS Pension, the IHT change is likely to matter most for those personal or defined contribution pots – not the NHS scheme death-in-service benefit.

Source: HMRC – Inheritance Tax: unused pension funds and death benefits. Last verified: 4 June 2026.

Timeline

The most common source of delay is incomplete or unclear documents. If a marriage certificate is in a former name, a death certificate has a partially illegible date, or there is any ambiguity about who should receive the lump sum, expect correspondence before payment is made.

Things that catch families out

DB2 nominations that were never updated. A member may have nominated an adult child, a sibling, or a former partner years ago and never revisited the form after a change in circumstances. Always check whether a DB2 is on file and who the named beneficiary is before assuming the spouse will receive the lump sum.

The PN1 is not retrospective. An unmarried partner cannot complete the PN1 form after the member dies. If the form was never completed while the member was alive and on the scheme, the partner has no entitlement to the adult dependant’s pension regardless of the length of the relationship.

Survivor’s pension is not automatic. You must claim it actively. The pension does not simply begin. Families sometimes discover months later that they needed to submit a Dependant Claim Form – arrears will be backdated to the day after death once the claim is processed, but the delay in claiming is avoidable.

The five-year guarantee is easy to miss. If the member retired and died within five years, ask NHS Pensions explicitly about the balance of the five-year guarantee. It is not always volunteered.

McCloud may mean recalculation. If the member had NHS service in more than one section and moved into the 2015 scheme between 2015 and 2022, their benefits may be recalculated under the McCloud remedy. NHS Pensions works this out automatically and chooses the more favourable outcome for the family – but it can extend the processing timeline.

Scotland and Northern Ireland are separate. This guide covers the NHS Pension Scheme in England and Wales. Scotland has the NHS Superannuation Scheme administered by the Scottish Public Pensions Agency. Northern Ireland has the HSC Pension Scheme. The principles are similar but the contacts and some details differ.

Related occupational pensions

If the deceased held other pensions or was a member of multiple public sector schemes, each needs its own notification:

• What happens to a pension when someone dies – overview of all pension types
• How to claim a Civil Service pension after a bereavement – for civil servants
• How to notify the Teachers’ Pension Scheme when someone dies – for teachers and lecturers
• What happens to the State Pension when someone dies – the DWP State Pension is entirely separate from any occupational scheme
• How to notify LGPS when someone dies – for local government workers
• How to claim Armed Forces Pension benefits when someone dies – for Service personnel
• What is the Tell Us Once service – which government organisations are notified at the same time

For probate questions on the rest of the estate, the probate guide covers thresholds, timings, and the full process.

Summary: five things to do first

1. If the deceased was still employed by the NHS – contact the NHS Trust’s HR or pensions team. They notify NHS Pensions on your behalf.
2. If retired or a deferred member – use Tell Us Once when registering the death, or call NHS Pensions on 0345 121 2522 (Monday to Friday, 8am to 6pm).
3. Check whether a DB2 nomination is on file – ask NHS Pensions who is nominated to receive the lump sum. Do not assume it goes to the spouse.
4. Check whether a PN1 partner nomination was completed – essential if the deceased had an unmarried partner who may be entitled to the adult dependant’s pension.
5. Actively claim the adult dependant’s pension, children’s pension, and lump sum – submit the Dependant Claim Form with all supporting documents. None of these are paid automatically.

The NHS Pensions bereavement team is experienced and well-organised. Notify them early to start the two-year clock on the lump sum, then take the claim one form at a time.