There are two occasions when a trivial commutation lump-sum death benefit may be paid:

• a survivor commutes a survivor’s pension; or
• a member dies within the guarantee period of a pension they are receiving and the recipient of the guarantee wishes to commute the remaining

In order to be able to commute a survivor’s pension for a trivial commutation lump-sum death benefit, the following conditions must be met:

• the pension being commuted must be paid to a dependant or nominee of the member who, under the rules of the pension scheme, is entitled to receive death benefits in respect of the member; and
• the payment made must extinguish the survivor’s entitlement to both pension and lump- sum death benefits under the scheme

There are no restrictions on who can receive the payments under a guarantee. Anyone who is entitled to receive the guarantee payments following a member’s death can elect to commute these for a trivial commutation lump-sum payment, providing it extinguishes all of their entitlements under the scheme in question