Inherited Pension Question

jody51

Hi Folks I am looking for some information if anyone can help

Basically my father (56years) passed away suddenly a few months ago. He had always left information regarding a small deferred pension with me and had nominated me to receive the small death grant if his death occured before retirement which unfortunately did happen. This was an old LGS government defined benefit pension (he left the scheme in 1996) and he had also requested spousal and dependants pensions with the scheme. My mother left us about 12 years ago and my parents didn't want to divorce but instead were legally separated during which my mother received a large payout and has signed a document saying she waives her right to anything else to do with my father finacially throughout her lifetime. I am basically just wondering what happens in this situation given that technically there is a widow since they weren't divorced but she cannot accept the money in this situation. There are no dependants as we are all over age and finished education and my father didn't have another partner. I know the obvious answer is to wait and see but has anyone got an insight into how the trustees would treat this? I know the death grant will be paid without any problems but would the pension fund die with my father?

Thanks in advance

mgdavid

there isn't a pension fund identifiable as your father's, as this is a DB pension so is a promise to pay a salary-related pension from a government source usually paid out of current taxation just like SP is.
The precise details of benefits in the case of the deferred member's death will be in the Scheme Rules, do you have access to a copy?

System

Hi

From the sketchy details...

You should expect a death grant, a multiple of the deferred pension and the survivors pension to your mother.

mgdavid

jody51 wrote: »

....... my parents didn't want to divorce but instead were legally separated........

forgot to ask - what exactly does this mean? (I thought legal separation was divorce?).

greenglide

There is "separation" (which is living apart) and "Judicial Separation" which is one step short of divorce. I doubt if this is a Judicial Separation as these look to be rare. It would depend on any legal agreements drawn up at the time and whether they are truly enforceable. See http://www.divorceaid.co.uk/legal/process.htm

jody51

Hi folks, thanks for taking the time to reply. I don't have a copy of the scheme rules, I've since heard from the solicitor that the pension trustees have still to confirm a value of the pension payable but that they have been informed of the situation regarding no payment to go to my mother. I believe it is a jusicial separation, equivalent to decree nisi with all settlements and custody finalised so they could move on with their lives. My mother isn't making any sort of claim against it so it will be interesting to see how the trustees handle it. Thanks again

greenglide

My mother isn't making any sort of claim against it so it will be interesting to see how the trustees handle it.

Without a spouse claim there is a good chance of getting nothing apart for the death benefit (on my scheme this is a refund of contributions) and a possible dependants pension but only at the discretion of the trustees if there is anyone dependant (child of school age?).

hyubh

jody51 wrote: »

This was an old LGS government defined benefit pension (he left the scheme in 1996) and he had also requested spousal and dependants pensions with the scheme.

Not really something you 'request' - they are just part of the package.

instead were legally separated during which my mother received a large payout and has signed a document saying she waives her right to anything else to do with my father finacially throughout her lifetime. I am basically just wondering what happens in this situation given that technically there is a widow since they weren't divorced but she cannot accept the money in this situation.

There's a widow, therefore a widow's pension is due to her. The survivor pension wasn't in your father's gift to give to someone else.

There are no dependants as we are all over age and finished education

Then there's no child pension due, as you've surmised.

I know the death grant will be paid without any problems

In principle, yes, given what you've said - not being so would take the widow to actively contest it, and with very plausible arguments, neither of which seem to be the case here.

but would the pension fund die with my father?

If we ignore the widow's pension due, the pension fund will have extinguished its liabilities pertaining to your father's membership on payment of the death grant, yes.

hyubh

hyubh wrote: »

There's a widow, therefore a widow's pension is due to her.

Hmm, I've now seen your clarification about the nature of the 'separation'; on the face of it if I were the widow I'd still be looking to claim however (was your father single when he died?).

With respect to the scheme rules, as your father left in 1996 then the 1995 scheme regs would I assume be the operable ones:

http://timeline.lge.gov.uk/LGPS1995/19951019.htm

jamesd

Given the situation if there is a benefit for a wife it appears that it might properly be paid to her then per her previous agreement passed on to the appropriate beneficiaries. Perhaps the pension scheme trustees might wish to facilitate this by making the payments directly instead of to her. Or perhaps not. They might even claim that since she can't keep it, nobody can have it.