Ill Health Retirement - Death in Service query

[makingsounds]

A colleague has been off work for over 18 months with cancer which is quite advanced and will not work again (no timescales on life expectancy) for the business or elsewhere.
Although the company has supported him, they have now asked the question about Ill Health Retirement and he is concerned about if and when the inevitable happens, where that leaves him in regard to Death in Service, as his priority is his family and what is left for them.
Any info would be appreciated on the Death in Service part especially...

[clashcityrocker]

It depends on his life expectancy.
The death in service payment will almost certainly be more than the IHR. Only they would have those figures.
It is a conversation he needs to have with his union representative - probably above unit level.

[RobertT]

Normally, if he's an active employee member of one of RM's pension schemes, the death in service payment is 4x pay.

If he's not an active member, then it's 2x pay.

If he's left the company, it's obviously £0.

As far as I'm aware, IHR is usually based on full pay, despite the possibility of being on half or even zero pay. To be honest I don't know if the same applies to death in service payments.

[97gaz]

I don't know if this applies to everyone, but I was IHR in Oct 2020 and my paperwork says what I presume is death in service benefit is covered for three years after I left. RM decided I was unlikely to work again, The exact wording is-

"In addition, you will remain entitled to life assurance cover under your current RMG life assurance arrangement for a period of three years after your date of leaving service, or to age 75 or sooner"

[RobertT]

I think that's part of your IHR. Death in service is paid when you're still employed by RM, which you aren't.

[97gaz]

I think that's part of your IHR. Death in service is paid when you're still employed by RM, which you aren't.

I honestly don't know. What life assurance was I entitled to while employed that I will still remain entitled to for three years?