Survey: Death in Service Pensions

This paper looks at the options open to trustees and employers that provide a dependant’s death in service pension benefit (DISP). In recent years, a combination of economic, social and legislative forces have required many policyholders to consider alternative options.

Key findings:

·       Of the 519 employers surveyed, 133 have insured a DISP benefit at some point in the past five years.

·       An unknown additional number probably self-insure some DISP liabilities through their DB pension scheme.

·       Four times salary was the most common redesign option for DISP promises.

The research offers employers insight into the range of options available to them to tackle this issue, including re-financing, re-designing or replacing the benefit. It highlights the main drivers for change, the most common actions taken and flags the key considerations associated with a redesigned benefit.