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Early retirement query

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Hello there
Just wondering if anyone can assist??
Hubby transferred his 12 yrs RAF pension into his new works pension( shell) and worked for them for over 5 yrs then left as we moved area and he left shell. His pension stayed with shell however and he was going to just keep it with them till he retires.
However we have had some devastating news in that he has a terminal illness. What will happen to his pension, will he be able to claim it early? (he is only 47) or will it just become part of his estate when he dies?
He has tried contacting them but hasnt heard back yet. We just want to get everyting in order.

Thanks for any help!

Li xx

Comments

  • chalky_75
    chalky_75 Posts: 2,491 Forumite
    I haven't a clue about your question. But I do send a big (( hug)) as you struggle to come to terms with such devastating news
    Try and do a good deed every day.
  • OH thanks for your kind words Chalky,,,,,,,,,,,, yes we havent had the best of years.
    Li x
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Very sorry to hear this.If he has a definite terminal diagnoses within 12 (or perhaps 6) months, you may be able to get the pension fund money now.Contact the Shell pension section to find out the scheme rules in terminal illness cases.
    Trying to keep it simple...;)
  • Thanks ED, we have treid to contact them just waiitng for the person who deals with it all to get cback to us as we cant find anything about it in the paperwork. His illness is on the list for his life inurance, so he can obtain 20% of it, but not sure about pension.
    Anyway, will re contact them again.

    Thanks
    Li
  • Hi Limana68,

    Sad news. I managed to get Imperial Tobacco to change their scheme rules for a scheme member with terminal illness (going back here to early 1990s) so that the lady concerned could take her pension benefit using the (then) Inland Revenue rules. The Trustees were fantastic. The message here is that even where the scheme rules don't currently permit 'commutation on the grounds of serious ill health', the Trustees may decide to change the rules.

    EdInvestor has pointed you in the right direction in respect of serious ill health. This Factsheet might help and gives a quick explanation, and four other alternatives available for you to consider:

    Terminal Illness - Preserved Members

    Whatever you do, because there are a number of options that may be available to your husband, you should consider seeking advice from an IFA.

    Wishing you both the best.

    Mike Jones

    I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.
  • mymatebob
    mymatebob Posts: 2,199 Forumite
    Sorry to hear of your news.

    This site may have applicable info
    http://www.pensionsadvisoryservice.org.uk/Personal_and_Stakeholder_Pensions/Death_Benefits/
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