When a member retires from the NHS Pension Scheme and then returns to pensionable employment, their death in membership Life Assurance Lump Sum (LALS) is worked out differently than if they had died in service before retiring.
Where a re-employed pensioner dies in pensionable employment, their LALS is 5 times their Tier 2 ill health pension if they are under normal pension age (NPA), or 5 times their age pension if they are over NPA.
NPA in the 1995 Section is age 55 for members of the special classes, or age 60. NPA is age 65 in the 2008 Section. In the 2015 Scheme NPA is age 65 or State Pension age, whichever is later.
We have added guidance and some examples of how the LALS is calculated within the death in membership section of the Family benefits and life assurance | NHSBSA web page.