What Happens to a Teachers' Pension When Someone Dies?

What happens to a Teachers' Pension when someone dies?

1Teachers' Pension death benefits bypass probate — they are paid at the scheme's discretion directly to nominated beneficiaries or dependants
2A death grant (typically three times pensionable pay for active members) plus a dependant's pension are the main benefits payable
3The nomination form tells trustees who should receive the death grant, but trustees are not legally bound by it
4Benefits paid before age 75 are usually tax-free as a lump sum; after 75, the recipient pays income tax at their marginal rate
5From April 2027, pension funds will come within the scope of IHT — but as a DB scheme, the Teachers' Pension pays lump sums and dependant's pensions, not unspent DC pots; how the new rules apply to DB death benefits is still subject to HMRC guidance

The Teachers' Pension Scheme is the public sector pension for teachers in England and Wales. When a member dies — whether still teaching, deferred, or retired — the scheme pays a death grant and an ongoing dependant's pension where applicable. These benefits sit outside the estate and do not normally require probate.

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Does a Teachers' Pension Require Probate?

In the great majority of cases, no. The Teachers' Pension Scheme holds death benefits in a discretionary trust, meaning they fall outside the deceased's estate. The scheme can pay the death grant directly to the nominated beneficiary without a Grant of Probate.

If there is no nomination and no eligible dependants, Teachers' Pensions may pay the death grant to the estate. In that case, probate may be required before the funds can be released. If you are unsure whether probate is needed, check whether a nomination was in place.

What Death Benefits Does the Teachers' Pension Pay?

Death Grant (Lump Sum)

Active members: three times the member's pensionable pay at the date of death
Deferred members (left teaching, not yet retired): a lump sum based on the deferred pension value
Retired members: if death occurs within five years of retirement, a lump sum representing the balance of five years' pension may be payable

Dependant's Pension

A surviving spouse or civil partner is entitled to an adult dependant's pension — typically around half the member's pension. This is paid for life and is subject to income tax. Eligible children may also receive a children's pension, usually paid until age 23 if in full-time education.

From the 2015 Career Average scheme, cohabiting partners who were financially dependent on the member may also be eligible for a dependant's pension, subject to providing evidence of the relationship.

How to Claim Teachers' Pension Death Benefits

Contact Teachers' Pensions. Call 0345 606 6166 or use the online bereavement notification at teacherspensions.co.uk. Have the member's national insurance number and Teachers' Pensions reference ready if possible.
Send a certified copy of the death certificate. Teachers' Pensions will require this before proceeding with any claim.
Complete the claim forms. You will be sent the appropriate forms. Dependants claiming a pension will need to provide evidence of the relationship (marriage or civil partnership certificate, evidence of cohabitation if relevant).
Allow time for assessment. Processing time varies, but Teachers' Pensions aim to resolve straightforward claims promptly. Complex cases involving discretion may take longer.

If you are unsure whether the deceased was a member of the Teachers' Pension Scheme, contact their last employer or use the Pension Tracing Service.

The Nomination Form: Why It Matters

Teachers' Pensions members are encouraged to complete a nomination of beneficiary form (expression of wishes). This specifies who should receive the lump sum death grant.

Trustees consider this nomination carefully, but are not legally required to follow it — keeping the funds outside the estate for tax purposes. In practice, trustees almost always honour a valid, up-to-date nomination. Problems arise when the nomination has not been updated after life changes (e.g., divorce, remarriage, or the death of the named beneficiary).

The dependant's pension is paid under the scheme rules directly to an eligible spouse, civil partner, or dependent — it is not affected by the nomination form.

Tax on Teachers' Pension Death Benefits

Death before age 75: The lump sum death grant is normally paid tax-free to the beneficiary, subject to the lump sum allowance rules. The dependant's pension is taxable as income.
Death at age 75 or over: The lump sum death grant is taxed as income for the recipient at their marginal rate. The dependant's pension is also taxable.

For detailed guidance, see GOV.UK's page on tax on pension death benefits.

IHT and Teachers' Pensions From April 2027

Currently, Teachers' Pension death benefits sit outside the estate and are not subject to inheritance tax. The government has announced that from 6 April 2027, pension funds will come within the scope of IHT — but the Teachers' Pension Scheme is a defined benefit (DB) scheme, not a defined contribution (DC) pot.

The April 2027 changes primarily target unspent DC pension pots. The Teachers' Pension Scheme pays a death grant lump sum and an ongoing dependant's pension — it does not hold an accumulated pot in the way a SIPP or workplace DC scheme does. How the new rules will apply to DB death grants and dependant's pensions is still subject to HMRC guidance. For deaths before April 2027, the current favourable rules apply. Read our full guide to pensions and inheritance tax from April 2027 for the latest position, and review our inheritance tax guide for 2026/27.

If There Is No Nomination Form

If no nomination form is on file, Teachers' Pensions will use their discretion. They will typically pay the death grant to the surviving spouse or civil partner. If there is no surviving spouse and no eligible dependants, the death grant may be paid to the estate.

If the death grant is paid to the estate, it becomes part of the deceased's assets for probate and estate administration purposes. It may then be subject to inheritance tax if the estate exceeds the probate and IHT thresholds.

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