Can HOF keep my Mum's pension lump sum from her estate?

bigell

My Mum, who died recently, worked for House of Fraser for over 20 years. Before she died (she was in poor health with a very poor prognosis) she told me she had asked for the remainder of her works pension to be paid to her in a lump sum. I have now seen letters from HoF confirming her decision. Before the transaction could be completed and the money actually put in her bank account, she died.

Now HOF is telling me that, despite her wishes being made clear, only her spouse can now get "benefits" . She was a widow and had no spouse.

HoF are completely ignoring her expressed wish and are now beginning to arrange to have her monthly pension paid to her spouse! What if her and her spouse didn't get on and that was the last thing she wanted? How can they do that?

Shouldn't the money go to her estate?

dunstonh

Sorry for your loss.

Defined benefits schemes pay a range of defined benefits on a selection of events. Death benefits on the pension are normally restricted to spouse and dependent children. If she was still employed by House of Fraser at the time of death then there is usually a death in service payment (normally along the lines of 2 times salary or something similar). If she was not still employed and there are no scheme death benefit payments then the pension would die with her.

hyubh

bigell wrote: »

Now HOF is telling me that, despite her wishes being made clear, only her spouse can now get "benefits" . She was a widow and had no spouse.

Like dunstonh says, in the world of DB pensions this is actually two different things (member vs. survivor benefits).

What if her and her spouse didn't get on and that was the last thing she wanted? How can they do that?

Then such a person should have got divorced! I confess I don't really undestand why it is unreasonable for a pension scheme to take being legally married to someone as red. Otherwise, the administrator would have to act as a sort of proxy social worker sorting out bitter family feuds, all the while making said feuds even worse because there's now 'free money' involved...

Shouldn't the money go to her estate?

No, not with a DB scheme.

bigell

hyubh wrote: »

Then such a person should have got divorced!

Clearly, I brought this potential situation up because not every couple that should divorce does. This doesn't apply to my Mum's case. Thanks for being so helpful.

bigell

I'm only concerned that they are ignoring her wish to have the lump sum paid - and are ignoring that and planning to make monthly payments. Who they intend to make the payments to is actually irrelevant.

jamesd

How much time elapsed between them receiving the request for a lump sum and her death? It's possible that the delay was excessive and the cause of the lump sum not being paid as requested.

RichandJ

jamesd wrote: »

How much time elapsed between them receiving the request for a lump sum and her death? It's possible that the delay was excessive and the cause of the lump sum not being paid as requested.

This, basically. It depends on the scheme rules OP, not what you feel should happen.

If you feel you're getting responses that you don't like, then that's because of your initial "shouldn't something I want to happen, happen" post. Its not up to you, or any of us, it's up to the Scheme Rules.

hyubh

bigell wrote: »

Clearly, I brought this potential situation up because not every couple that should divorce does.

'Clearly'? It's not relevant to your own case, and the point is contestable anyway, if you think things through.

This doesn't apply to my Mum's case. Thanks for being so helpful.

Keep your sarcasm to yourself - it was you who made the general point about spouses, and I was only responding to that.

Who they intend to make the payments to is actually irrelevant.

Um...

bigell

jamesd wrote: »

How much time elapsed between them receiving the request for a lump sum and her death? It's possible that the delay was excessive and the cause of the lump sum not being paid as requested.

It was a matter of days - less than a week.

le_loup

bigell wrote: »

Shouldn't the money go to her estate?

Or do you mean you?
Understand the scheme rules and then apply your thought processes rationally and calmly. The last thing you want to do is to alienate people like you are the people on this forum who are trying to help you.

bigell

I had been warned that this place was full of mean-spirited bottom-dwellers. Seems they were right.