SERPS and what happens to it when the claimant dies

TrickyDicky101

My father is aged 72 is in ill health and has recently been diagnosed with bowel cancer. He is married to my mother (who is 68) and his pension income is made up of basic State Pension, an occupational defined benefit pension, and a SERPS element.

Given that we are now concerned as to how long he might have left, he wants to know what will happen to his pensions on death.

The occupational db pension is clear (and relatively generous to spouses) but we don't really have any idea as to what happens to his SERPS or to the basic State Pension.

1. His SERPS is a significant proportion of his current pension - can anyone explain whether any of it retained by my mother on his death?

2. My mother was essentially a stay-at-home Mum for much of her working life (looking after her children) so I would doubt (although have not been able to confirm) whether she has a full contribution record in her own right.
What in terms of State Pension will she be entitled to on my father's death?

Thank you for any assistance.

pink_princess

When did he retire?

TrickyDicky101

I'm pretty sure he started his State Pension at normal retirement age (I can check and confirm this though) so his 65th birthday

jem16

TrickyDicky101 wrote: »

1. His SERPS is a significant proportion of his current pension - can anyone explain whether any of it retained by my mother on his death?

She can inherit up to about 80% depending on his exact date of birth.

http://www.nidirect.gov.uk/index/information-and-services/pensions-and-retirement-planning/pensions-and-retirement/state-pension/extra-pension-entitlement/serps-and-the-state-second-pension.htm

2. My mother was essentially a stay-at-home Mum for much of her working life (looking after her children) so I would doubt (although have not been able to confirm) whether she has a full contribution record in her own right.
What in terms of State Pension will she be entitled to on my father's death?

Thank you for any assistance.

She is likely to be able to claim a full basic state pension based on his contributions plus up to 80% of his SERPS.

TrickyDicky101

Thank you very much - my father goes under the knife this Friday and I know he will be very relieved to know that my mother can inherit the majority of his SERPS should the worst happen (it would be 80% given his d.o.b.).

margaretclare

Yes, the percentage of SERPS which can be inherited by a surviving spouse is dependent on year of birth.

I understand what you say about SERPS being a 'significant proportion' of pensions income. My DH, born 1934, was never contracted-out and the SERPS which he gets is on a level with his full basic state pension. I know I can inherit 100% of it should he die before me. He can also inherit mine if I die first, although mine is a much smaller proportion because I was contracted-out into the NHS scheme.

TrickyDicky101

What I find is that it is all so confusing. I am near 40 years of age and I have made sure I save towards my pension all my working life, but as far as rules & regulations and what happens when someone dies etc etc I know next to nothing at all! Thankfully I have my marbles, but for someone of my father's age and infirmity, trying to navigate and make sense of everything is just horrible for him.

Anyway, thank you to everyone who posted on this thread - I really appreciate the advice and information

xylophone

If your father is likely to be poorly for a while (and don't give up hope - I knew someone who survived an operation for stomach cancer (total gastrectomy and splenectomy) for 14 years +), would a POA be helpful?
https://www.gov.uk/power-of-attorney/overview

TrickyDicky101

Thank you xlophone - I already have an enduring power of attourney over my father's affairs (it was entered into a long time ago), although probably a very good idea for me to check and confirm I/my father have the relevant documentation.

I do hope he pulls through.

Thanks again!

margaretclare

xylophone wrote: »

If your father is likely to be poorly for a while (and don't give up hope - I knew someone who survived an operation for stomach cancer (total gastrectomy and splenectomy) for 14 years +), would a POA be helpful?
https://www.gov.uk/power-of-attorney/overview

Oh yes. They'd hardly be putting him through this major surgery, with all its risks and effects on him, without at least a fighting chance. Good luck to him and to all of you.