Pension of terminally ill

spat82

Hello, Hopefully someone can help, I will try to be brief...

Background - My Father is a retired teacher (62) who has been diagnosed with a terminal brain tumor. He is very ill, and the life expectancy is around 6 months at best. He is married to my mother who is 61 and currently claims a private pension. Both retired early due to my fathers ill health.

Questions

1) When my father passes, as all his pension contributions were since 1972, my Mum would get 50%? Is there any lump sum?

2) I have read about "serious ill health" options. Can anyone explain what these are and if it is worth considering. We just want to make sure my Mum gets the best outcome. His doctor would sign the forms saying that life expectancy is less than one year.

3) I have also read about a £2k death benefit, would my Mother be eligible for that?

4) Neither currently claim the state pension, but both have full contributions. Do we just lose my Dad's as he has not started claiming yet?

I think the main concern is my Dad's pension, it seems so unfair that he can lose so much of his pension pot, after only being retired for a couple of years? It would be great if there was any help due to ill health, but the most important factor is the long term support for my Mum, not necessarily a short term payout if that makes sense?

Anyway, any help would be great prior to calling my Dad's pension people as it is all fairly new to me and another stress to deal with unfortunately.

Thank you in advance!

HOWMUCH

Answers to which I know

3 Sorry don't think your mum will get anything as it's means tested

4 Yes your dad's pension finishes with him unclaimed


Has you GP given you a DS1500 form so that your dad can claim PIP and if your mum has an income of less than £100 per week she can claim carer's allowance

So Sorry to hear your sad new's but enjoy things with your dad whilst you can, I lost my brother when he was 49 to MND

spat82

Thanks HOWMUCH...yes, we are trying to enjoy the time we have.

Your answers were as I suspected but wanted to ask. It seems so unfair that someone can spend their life paying into a pension, and then get nothing...

Yes, we have PIP but cannot get carers...

lizziebabe

Sorry to hear about your Dad.

The McMillan service might be able to help you with these questions. Your GP may have contact details, or your local hospice may be able to give you some advice.

Mojisola

spat82 wrote: »

Yes, we have PIP but cannot get carers...

Why not?.............

jem16

spat82 wrote: »

Hello, Hopefully someone can help, I will try to be brief...

Background - My Father is a retired teacher (62) who has been diagnosed with a terminal brain tumor. He is very ill, and the life expectancy is around 6 months at best. He is married to my mother who is 61 and currently claims a private pension. Both retired early due to my fathers ill health.

So sorry to hear about your Dad,

Questions

1) When my father passes, as all his pension contributions were since 1972, my Mum would get 50%? Is there any lump sum?

As your father is likely to die within 5 years of starting his pension, there will be a lump sum. This amounts to 5 years worth of his annual pension minus what has already been paid.

The TPS mentions it here although not in any great detail.

https://www.teacherspensions.co.uk/members/the-scheme/retired-teacher/after-you-have-gone.aspx

The Scottish teachers' scheme follows the same rules and it is mentioned in more detail in the scheme booklet.

See Page 28 under Deficiency Grant and Page 29 for a summary of the complete entitlement.

https://www.teacherspensions.co.uk/members/the-scheme/retired-teacher/after-you-have-gone.aspx

Certainly a question to be asked.

It seems that your Mum would also be entitled to a short term pension for 3 months based on your Dad's pension. After that it would be half of your Dad's pension.

2) I have read about "serious ill health" options. Can anyone explain what these are and if it is worth considering. We just want to make sure my Mum gets the best outcome. His doctor would sign the forms saying that life expectancy is less than one year.

I don't see any mention of it in the scheme rules for someone who is already retired. Sorry.

3) I have also read about a £2k death benefit, would my Mother be eligible for that?

She would be entitled to that, yes. It is not means tested and it does not matter what else she will receive.

Details here;

https://www.gov.uk/bereavement-payment/overview

Your Mum may also be entitled to Bereavement Allowance if she hasn't reached state retirement age before your father's death.

https://www.gov.uk/bereavement-allowance

4) Neither currently claim the state pension, but both have full contributions. Do we just lose my Dad's as he has not started claiming yet?

Yes and No. The basic state pension will be lost but your Mum would be able to inherit some of his SERPS/S2P although he may not have any if he has been teaching all of his career as it was a contracted out scheme.

Hopefully you can help your Mum get this all sorted.

spat82

Mojisola - I am not entirely sure, but Macmillan said it related to income or something as my mums pension is over £100 per week. I will confirm with them.

Mojisola

spat82 wrote: »

Mojisola - I am not entirely sure, but Macmillan said it related to income or something as my mums pension is over £100 per week. I will confirm with them.

That would be right. Income of over £100 makes you ineligible for CA.

spat82

Jem16 - Thank you for your thoughts and your very helpful comments. It looks as though Mum will get the £2k and the 52 weeks bereavement, so that is at least something...

Still frustrated that his state pension just goes...

So if he dies after 5 years of retirement, no lump sum, just the 50%? Is that 50% for life?

Thanks again...

jem16

spat82 wrote: »

So if he dies after 5 years of retirement, no lump sum, just the 50%? Is that 50% for life?

Thanks again...

It looks like it's a full pension the same as your father currently gets for 3 months then 50% for life.

You say your father took early retirement - when was that?

spat82

jem16 wrote: »

It looks like it's a full pension the same as your father currently gets for 3 months then 50% for life.

You say your father took early retirement - when was that?

I am not entirely sure, but I would say around 5 years now. I will check his paperwork.