lgps death in service payment and pension

dazzadub

My maybe in law passed in march this year.

We wrote to lgps to inform them.

They ave wroge saying 21k death in service grant and the pension is paid over her husband over rest of his life.

Question is her salary is £13099 but they saying her final salary was 7000 hence the 21k payment. Which is nearly half the amount being offered.

And I also read the full pension pot is payable in a lump sum.

She died before pension age.

From are calculations the death in service is 3 x her salary so 39k. And pension pot is 28k.

Are we wrong or are they.

xylophone

http://www.lgps.org.uk/lge/core/page.do?pageId=8718921

And I also read the full pension pot is payable in a lump sum.

Where did you read this?

£13099 but they saying her final salary was 7000

Are you certain of your figures for her final salary?

Rodders53

Was she a full-time employee or part-time? The salary you give may be the 'full-time equivalent' and not the actual salary paid?

Schemes like this often - as well as the 3x salary benefit - also return the employees contributions to the pension scheme on death, but I don't know if this is the case here?

http://www.lgps.org.uk/lge/core/page.do?pageId=1 is their website where you may be able to find out more?

atush

And I also read the full pension pot is payable in a lump sum.

Are you confusing this FS pension with a money purchase pension (which does pay out in full on death in service)?

jem16

dazzadub wrote: »

My maybe in law passed in march this year.

We wrote to lgps to inform them.

Now we see the reason behind the posts in April about death-in-service with LGPS.

https://forums.moneysavingexpert.com/discussion/4560023

They ave wroge saying 21k death in service grant and the pension is paid over her husband over rest of his life.

Which is correct assuming her salary on death was £7k. The pension is definitely payable to her husband.

Question is her salary is £13099 but they saying her final salary was 7000 hence the 21k payment. Which is nearly half the amount being offered.

As asked - was she part-time?

And I also read the full pension pot is payable in a lump sum.

Not in a final salary scheme it isn't. There is no pension pot.

This is how the LGPS pays out a Survivor's pension.

http://www.lgps.org.uk/lge/core/page.do?pageId=102477

From are calculations the death in service is 3 x her salary so 39k. And pension pot is 28k.

Are we wrong or are they.

You are wrong in your assumptions as far as the Survivor's Pension is concerned. The lump sum will depend on your answer to the part-time question.

dazzadub

xylophone wrote: »

http://www.lgps.org.uk/lge/core/page.do?pageId=8718921



Where did you read this?



Are you certain of your figures for her final salary?

100% sure on figures. They off the p60. I've spoken to them again and they said a link sum could be payable for pension pot

dazzadub

atush wrote: »

Are you confusing this FS pension with a money purchase pension (which does pay out in full on death in service)?

I have spoke to them once again. Who confirm the amount of 21k is wrong and its much higer. Death in service


The pension pot they say will be paid to her husband in monthly payments.

Death in service payment is 3 times her salary which they say is 12.500 but her p60 and cert of pay show 13800.

dazzadub

Her actual salary is £13800 pa. This is confirmed by the HR at uni. Her p60 and cert of pay.

The LGPS say her salary was 7k pa. I questioned this and told them the p60 details. They said they would check. He called back 20mins later as needed to confirm with Payroll. He confirms her salary as 12.500kpa. Which still differs a little so taking p60 into them and her contract and cert of pay to them Monday morning.

The pension pot they say it'll be paid as a widowers pension as they can't send that much money in a transfer. But is going to find out if it can be down ad lump sum.


Question? Is the pension taxable.

jem16

dazzadub wrote: »

I have spoke to them once again. Who confirm the amount of 21k is wrong and its much higer.

So they should calculate it again then.

The pension pot they say will be paid to her husband in monthly payments.

Yes that's the normal arrangement.

dazzadub

jem16 wrote: »

So they should calculate it again then.



Yes that's the normal arrangement.

They have recalculated it after questions were given to them. But they get there figures direct from the university who seem to be giving wrong info.

The form they sent stated 21k and pension over rest of life. And for husband to sign and wave his rights to further claims. He has signed it but hasn't sent off yet. I've told him to rip itup

jem16

dazzadub wrote: »

The pension pot they say it'll be paid as a widowers pension as they can't send that much money in a transfer. But is going to find out if it can be down ad lump sum.

The answer to that is No. It's quite clearly laid out in the scheme rules that a Survivor's pension is payable.

Question? Is the pension taxable.

Yes it is.

Is your father-in-law still working?