Old final salary pension / ill health

RGP55

I have recently been diagnosed with cancer and I am trying sort out our finances asap as one of my major concerns is for my wife, as I am the main earner and we are both approaching 60.

I have an old final salary pension with 12 years service with an ex-employer, which is payable at 65 - I believe there is a lower spouse's pension payable immediately in the event of death. I understand that there may also be other benefits with a final salary pension, but that it may be possible to instead obtain a transfer to a private pension and then draw-down, or withdraw the entire pension pot if the prognosis is poor. I realise I would need to contact an IFA for this.

Should I contact the pension scheme administrators myself to request confirmation of benefits / transfer values before I see an IFA, or is this something an IFA should do? What is the best way to request confirmation of benefits, or should I just ask for the scheme rules?
Also I am concerned that if the administrators realise I am ill they may give me a lower transfer value - is this likely, and if so, is there anything to help prevent it?

Many thanks for any advice on this.

hyubh

RGP55 wrote: »

I have an old final salary pension

What's the scheme? A normal retirement age of 65 doesn't really narrow it down.

Should I contact the pension scheme administrators myself

Sooner you knew the default position the better I would have thought.

or is this something an IFA should do?

Ask the administrators yourself in the first instance, regardless of whether an IFA (on your behalf) may come to ask the same questions again.

What is the best way to request confirmation of benefits, or should I just ask for the scheme rules?

Surely you can do both.

As an aside, if it came to it, I would expect the widow's pension to be payable immediately on death, along with a lump sum, even if you weren't yet 65. Potentially there would also be a 'short term' pension lasting something like three months whereby the widow's one is paid at full rate not the reduced widow's one. However, as a recent thread on this forum has discussed, even if the scheme has the concept of a short term pension, actual payment may be discretionary - depends on the rules.

atush

Yes you should ask for paperwork on what your options are (which will differ due to your prognosis- have you got one? Is it less than one year?) with a verbal explanation you can use now to take with you.

They cannot change your transfer value if they know you are sick.

Have you got any DC pensions? Have you got a state pension statement and forecast?

Bazofts_Revenge

I obtained transfer values for my Final salary scheme this year and for once they included more comprehensive details on the death of deferred member. My scheme would not only refund my contributions (which is the only detail I knew) but also pay out a lump sum of 5 years worth of pension and if I have a spouse or qualifying partner then they will receive 50% pension for life. Ensure they give you all the info you require. I hope all this isn't required in the end. Good luck.

xylophone

You don't have a copy of the scheme booklet?

You might find one on the internet.

Otherwise, contact the administrator.

Bazofts_Revenge

xylophone wrote: »

You don't have a copy of the scheme booklet?

You might find one on the internet.

Otherwise, contact the administrator.

The additional details I listed were never in any of my scheme booklets.

xylophone

The additional details I listed were never in any of my scheme booklets.

They might be in the OP's - varies from booklet to booklet?

http://www.btpensions.net/91/199

Lots of detail in the above.