Beneficiary Of Pension - Not Married

Confused_Need_Help

Hello Everyone
I'm really hoping some really intelligent person will be able to give me some guidance.

My Mum's partner of 20 years has just passed away. He was aged 64 and had no children, just 2 brothers.

My Mum was named as sole beneficiary on one pension scheme and joint beneficiary along with the 2 brothers on another pension scheme. Our concerns are that my Mum never married her long term partner so Is she still considered as a spouse. They did live on and off together but always kept there own private address's. They didn’t have any joint accounts, utility bills etc.

We have been advised by each pension company that we need to include a cover letter to explain the relationship and if they was financially dependent on each other. This will then be put to the board of trustees for them to make a decision as to weather they are prepared to make any further payments to the beneficiaries.

Can anyone provide us with any guidance on the best way to proceed.

Thanks in advance.

Andy_L

You post implies this is a Final Salary pension, in which case:

It depends on the scheme rules. If they just say spouse then she has no right to any spouses pension, althogh the trustees may have the discretion to grant one.

If the rules say spouse or partner then she's on better ground althogh the fact that "They did live on and off together but always kept there own private address's. They didn’t have any joint accounts, utility bills" will count against her in demonstrating they were a financially interdependant couple.

Confused_Need_Help

Well I know that a lump some was taken out around 4 years ago and then he was receiving a monthly payment from each plan. The scheme does only state spouse.

bogeysmum

To be honest, it is exactly as you have been told. Because your Mum was not a spouse she does not have an automatic right to the benefits. This will be entirely at the discretion of the trustees which is why both insurance companies have suggested you put together a case in support of why the benefits should go to her. You cannot influence their decision in any way, simply put your best case.

Confused_Need_Help

Thank you so much for all your advice so far.

On a seperate note what is the point of declaring a beneficiary as it seems to hold no baring.

molerat

Should she be entitled to the remainder of any guarantee period ?

Andy_L

Confused_Need_Help wrote: »

Thank you so much for all your advice so far.

On a seperate note what is the point of declaring a beneficiary as it seems to hold no baring.

Some schemes pay a lump-sum death benefit as well as or instead of a survivors pension. If she was named as a beneficary she may be entitled to a lump sum depending on the scheme rules

blueboy43

Confused_Need_Help wrote: »

Thank you so much for all your advice so far.

On a seperate note what is the point of declaring a beneficiary as it seems to hold no baring.

often pension scheme has life insurance with it (certainly before retirement). The beneficiary form may be for the death in service benefit.

The advantage of filling the beneficiary form out is that a death in service lump sum is then potentially excluded from inheritance tax.

Frequently a scheme will state that the beneficiary form cannot be used to direct the pension.

However it always depends on the scheme rules