Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • wookie6
    • By wookie6 7th Feb 18, 7:26 PM
    • 217Posts
    • 20Thanks
    wookie6
    Widow's pension - How is this calculated?
    • #1
    • 7th Feb 18, 7:26 PM
    Widow's pension - How is this calculated? 7th Feb 18 at 7:26 PM
    Hi,

    A Widow's pension payable on your death is a fraction of your annual pension, however how is this calculated? Is there a basic formula used to calculate this figure based on your annual pension or does this differ from pension scheme to pension scheme.

    If it does differ from pension scheme to pension scheme, does anyone know how this is calculated for a Local Goverment Pension Scheme (LGPS) and whether this Widow's pension is affected under the LPGS scheme if you convert some of your annual pension to a cash lump sum?

    Thanks in advance!
Page 1
    • GunJack
    • By GunJack 7th Feb 18, 9:03 PM
    • 9,985 Posts
    • 7,464 Thanks
    GunJack
    • #2
    • 7th Feb 18, 9:03 PM
    • #2
    • 7th Feb 18, 9:03 PM
    CS/LGPS is normally half the pension to a surviving spouse, Silvertabby may be able to tell you about how commutation affects a survivor's pension
    ......Gettin' There, Wherever There is......
    • xylophone
    • By xylophone 7th Feb 18, 9:07 PM
    • 24,495 Posts
    • 14,348 Thanks
    xylophone
    • #3
    • 7th Feb 18, 9:07 PM
    • #3
    • 7th Feb 18, 9:07 PM
    https://www.staffspf.org.uk/Members/Forms/PENDT1.pdf

    may be of interest - presumably your LA produces a similar fact sheet?
    • BoxerfanUK
    • By BoxerfanUK 7th Feb 18, 9:17 PM
    • 318 Posts
    • 234 Thanks
    BoxerfanUK
    • #4
    • 7th Feb 18, 9:17 PM
    • #4
    • 7th Feb 18, 9:17 PM
    Don't know if the LGPS is different, but in the Civil Service 'Classic' scheme a widow/er will get 50% of the pension in payment when the pensioner dies.

    In addition, if the pension was reduced (commuted) for additional lump sum then the widow/er will still get 50% of the ORIGINAL UNCOMMUTED AMOUNT.
    • Silvertabby
    • By Silvertabby 7th Feb 18, 9:24 PM
    • 2,281 Posts
    • 3,062 Thanks
    Silvertabby
    • #5
    • 7th Feb 18, 9:24 PM
    • #5
    • 7th Feb 18, 9:24 PM
    If only it were that easy!

    The LGPS widow's pension has never been a straight 50% of the member's pension.

    For service up to 2008:
    Member's pension = 1/80th (of pensionable pay x service)
    Widow's pension = 1/160th (notional 50% .... but...)

    For service from 2008 to 2014:
    Member's pension = 1/60th
    Widow's pension = 1/160th

    For service from 2014:
    Member's pension = 1/49th (CARE)
    Widow's pension = 1/160th

    So, from 2008, the widow's pension is less than 50% of the members pension BUT reductions to the members pension for early payment and/or commutation are disregarded, so the widow's pension could therefore be more than 50%.

    Also factored in would be a possible reduction for a post retirement marriage, etc, and a possible increase from the widow's GMP re-calculation.

    When the rules changed in 2014 (allowing serving members to access their benefits from age 55) I saw many examples of people taking their benefits straight away despite hefty early retirement penalties of some 50%, plus further reductions due to taking the maximum commutation lump sum. As the early payment penalty and the commutation reduction are ignored for spouse's pension purposes, we were seeing examples of 80% spouse's pensions (based on the member's reduced pension).
    Last edited by Silvertabby; 07-02-2018 at 9:39 PM.
    • wookie6
    • By wookie6 7th Feb 18, 9:35 PM
    • 217 Posts
    • 20 Thanks
    wookie6
    • #6
    • 7th Feb 18, 9:35 PM
    • #6
    • 7th Feb 18, 9:35 PM
    Wow - Thanks very much everyone, that's really helpful. And to ask a daft question, I assume the widow's pension payable on your death is paid to the widow each year until they die?
    • Silvertabby
    • By Silvertabby 7th Feb 18, 9:37 PM
    • 2,281 Posts
    • 3,062 Thanks
    Silvertabby
    • #7
    • 7th Feb 18, 9:37 PM
    • #7
    • 7th Feb 18, 9:37 PM
    Wow - Thanks very much everyone, that's really helpful. And to ask a daft question, I assume the widow's pension payable on your death is paid to the widow each year until they die?
    Originally posted by wookie6
    In the case of the LGPS, yes. The spouse's pension is paid for life, even if the widow re-marries or co-habits.
    • wookie6
    • By wookie6 7th Feb 18, 9:43 PM
    • 217 Posts
    • 20 Thanks
    wookie6
    • #8
    • 7th Feb 18, 9:43 PM
    • #8
    • 7th Feb 18, 9:43 PM
    In the case of the LGPS, yes. The spouse's pension is paid for life, even if the widow re-marries or co-habits.
    Originally posted by Silvertabby
    Excellent, thanks for confirming
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,001Posts Today

9,728Users online

Martin's Twitter
  • RT @mmhpi: A huge thank you to everyone who has signed our #RecoverySpace campaign letter so far - we have reached over 1,000 names! If you?

  • RT @fikee: Told a ridiculously cool young lad behind me in the supermarket that I loved his boots. He looked at me and in that split secon?

  • Happy Birthday Jordon. 21 today. Wish you as good a day as you can, and hope you are out of hospital and on the m? https://t.co/G0V9q9agzT

  • Follow Martin