The Royal Mail Group Life Assurance Scheme provides death in service cover for Royal Mail employees who are not members of a Royal Mail Group pension arrangement.

This page contains questions and answers about the Royal Mail Group Life Assurance Scheme. If you have further questions, please contact rm.glaspensionsubmission@royalmail.com

Will I be covered for a benefit under the Royal Mail Group Life Assurance Scheme?

You will be covered for a life assurance benefit under the Royal Mail Group Life Assurance Scheme (“the Group Life Assurance Scheme”) if you are in service with Royal Mail Group and you are either a member of the National Employer Savings Trust (NEST) or are not a contributing member of another Royal Mail Group pension arrangement.

Royal Mail Group means Royal Mail, Parcelforce Worldwide and any other employer admitted to the Group Life Assurance Scheme. 

Members up to age 90 will be covered for the life assurance benefit. If you are over age 75 there are additional criteria that need to be met in order to qualify for the benefit, however the conditions are such that we anticipate the vast majority of members aged over 75 to be covered. 

If you are in service with Royal Mail Courier Services, StoreFeeder and Property and Facilities Solutions Ltd, you will be covered for a life assurance benefits under the UNUM Life Master Plan ("the Plan"). Please click here (link coming soon) for further information on benefit coverage.

If you are a member of another Royal Mail Group pension plan you will not be covered under the Group Life Assurance Scheme. Please consult the relevant Royal Mail Group pension plan section for more information on the benefits your dependants would be entitled to if you died. This other Royal Mail Group pension plan could be the:

• Royal Mail Collective Pension Plan (the Collective Plan) or the
• Royal Mail Defined Contribution Plan.

What is the life assurance cover under the Group Life Assurance Scheme?

If you are not a contributing member of a Royal Mail Group pension plan you covered for a death in service lump sum benefit of 2 x Annual Basic Pay. 

If you are a contributing member of NEST, you are covered for a death in service lump sum benefit of 4 x NEST Pensionable Pay. 

The total death in service lump sum you are entitled to is comprised of any lump sum you may be eligible for from a Royal Mail Group pension plan, plus an amount from the Royal Mail Group Life Assurance Scheme. 

Please note: If the total lump sum death in service benefits from your other Royal Mail Group pension plans are greater than your entitlement (two times your annual basic pay or four times your NEST pensionable pay), there will be no additional payment made from the Royal Mail Group Life Assurance Scheme.

*NEST Pensionable Pay is defined as basic pay if you work full time and basic pay plus over time (capped at full time equivalent pay) if you work part time.

Will I have to attend a medical?

In some circumstances you may be required to have a medical before you will be covered. You will be told if this is necessary.

How is the life assurance benefit provided?

The benefit provided by the Group Life Assurance Scheme is insured through a life insurance policy, so will only be payable to the extent that the Trustees, who are responsible for the administration of the Group Life Assurance Scheme, have been able to obtain insurance cover for you. If the insurer restricts the amount payable on your death, your beneficiaries may receive less than the amount stated above.

On leaving service, or reaching age 90 if earlier, your cover would cease and if you wanted alternative cover, you would have to secure it privately and pay the cost yourself.

When did all this come into effect?

The Group Life Assurance Scheme started on 1 April 2008. The benefit is provided through a trust called the Royal Mail Group Life Assurance Scheme. Benefits are payable in accordance with the rules of that Scheme.

Are there any other benefits payable to my dependents if I die?

If you are or have been a member of a Royal Mail Group Pension Plan there may be pension benefits payable. Please contact the relevant scheme for further information: 

• Collective Plan
• RMDCP
• RMPP
• RMSPP

How much does life assurance cost me under the Group Life Assurance Scheme?

There is no cost to you. The costs of the providing life cover under the Group Life Assurance Scheme are paid entirely by Royal Mail Group.

How do I nominate who I want to receive the payment from the Group Life Assurance Scheme on my death?

The Trustees of the Group Life Assurance Scheme decide to whom to pay benefits on your death but will take your wishes into account.

You should complete an Expression of Wish Form, available by clicking here.   

What happens if I don’t return the Expression of Wish Form?

If you die while in service, the Trustees of the Group Life Assurance Scheme will have to decide who is to receive the benefits without knowing your wishes. The Trustees will have to investigate your circumstances in order to decide how to exercise their discretion. The Trustees may take into consideration any Will you have made or evidence from your family and friends. The Trustees are more likely to exercise their discretion in a way you would prefer them to, if you have returned the Expression of Wish Form.  

Who can I nominate on the Expression of Wish Form?

You can nominate your spouse (including a spouse of the same sex), civil partner, partner, boyfriend or girlfriend, children, brother or sister, parents, grandparents, other relatives, or anyone financially dependent upon you or interdependent with you.

You can name several persons to share the lump sum death in service benefit and there are spaces on the form for you to state what proportion you would like each person to receive. If you were to nominate a charity or other organisation (rather than a person), it is possible that the Trustees would not follow your nomination.

What happens if my circumstances change?

If your circumstances change (you get married for example) and you would like different persons to receive the lump sum benefit, you will need to complete and return a new Expression of Wish Form. You can obtain a new form here.

Will my beneficiaries have to pay tax on the money they receive?

Your beneficiaries will not normally have to pay inheritance tax on the money they receive because it is paid from a discretionary trust. This means it will not be included in your estate for inheritance tax purposes. However, in some specific circumstances a tax deduction will be applicable, for example, if you are over age 75 at date of death.

There will be no additional income tax for your personal representatives to pay so long as all the value of all benefits from all registered schemes (including benefits payable on death) does not exceed the the Lump Sum and Death Benefit Allowance (£1,073,100 for the tax year 2024/25).

This is the current position as at September 2024 but you should note that tax rules may of course change in future.

What cover do I get for ill health?

The Group Life Assurance Scheme does not provide any ill health benefits over and above the ill health benefits currently provided by Royal Mail Group.

What happens if I go on sick leave?

If you were eligible for cover immediately before you go on sick leave, you will still be covered for the death in service lump sum under the Group Life Assurance Scheme so long as you are still employed by Royal Mail Group.

If I am drawing my pension and still work for Royal Mail Group, am I entitled to this life assurance cover of two times basic pay?

If you are not a contributing member of a Royal Mail Group pension plan, and you are employed by Royal Mail Group (excluding casual employees) you will be classed as a member of the Group Life Assurance Scheme. As such, you will be entitled to a total lump sum death in service benefit of two times your annual basic pay. This will be comprised of any lump sum you may be entitled to from a Royal Mail Group pension plan, plus an amount from the Royal Mail Group Life Assurance Scheme to ensure your death in service benefit is two times your annual basic pay.

Please note: If the total lump sum death in service benefits from your other Royal Mail Group pension plans are greater than two times your annual basic pay, there will be no additional payment made from the Royal Mail Group Life Assurance Scheme.

Will this benefit ever be withdrawn?

Royal Mail Group reserves the right to amend or withdraw this benefit in future, for example, if the costs of paying the insurance for providing this benefit become too high.

What if I die with other Royal Mail Group pension benefits?

If you have preserved benefits from another Royal Mail Group pension arrangement, your lump sum death benefit may be offset against the other death benefits payable.