NHS Pension Query (survivor benefit)

tobyjuggler

Hi everyone I hope someone can help as I am usually ok at this type of thing but really can't focus at the moment.

My partner (43) died rather suddenly and named me as her nominee (NHS Pension 1995 ) to receive her pension.
I have looked at the booklet but can someone advise how much the lump sum would amount to and what the pension would also be her salary was £28000 and she was a deferred member since leaving in 2010 and had 17 years service we also have 2 children who are 13 and 14 and I believe they will each get a share until age 23. did try to post link to pension info page but wouldn't allow me to so please copy paste the bottom line if necessary (page 30)
Thanks so much in advance.
Members Guide - SD Guide (PDF 1521kb)

xylophone

http://www.nhsbsa.nhs.uk/Pensions/2690.aspx

The Administrator will advise you of the relevant amounts.

atush

Sorry for your loss, do get back if you need more help, or to describe the process for others who follow?

have you claimed a bereavement allowance?

tobyjuggler

atush wrote: »

Sorry for your loss, do get back if you need more help, or to describe the process for others who follow?

have you claimed a bereavement allowance?

Thank you for that, I am not entitled to bereavement allowance as we weren't married however we lived together for almost 15 years but latterly lived apart due to her alcohol dependence which eventually caused her death, Anyway I sent all the required paperwork and certificates etc to NHS Pensions but really just couldn't figure out the pension and lump sum I input her salary for the time until 2010 when she left and it states a pension of £6000 so I assume its tax free and if I understand correctly it states that I receive 50% and first child 25% 2nd child 25% therefore 100% so £500 per month (until the kids are 23 also is the lump sum equal to three months pension (£1500)or three years?(£18000) Sorry for long post it just isn't looking clear to me and would just like to be sure of what to expect as a ballpark figure .
I will of course update this post when the matter is concluded.
Thanks again.:)

jem16

tobyjuggler wrote: »

I input her salary for the time until 2010 when she left and it states a pension of £6000

As she's likely to have been a member of the 1995 section she would have built up 17/18ths. You say her final salary was £28k so £5950. However this was from 2010 so there would be CPI increases for each year since then but that gives you a rough idea.

More info here;

http://www.nhsbsa.nhs.uk/Documents/Pensions/Family_Benefits_and_Life_Assurance_factsheet_1995_Section_v_7_0.pdf

so I assume its tax free

No it's not tax-free. Pension income is taxable and would be added to your normal income assuming you are working.

and if I understand correctly it states that I receive 50% and first child 25% 2nd child 25% therefore 100% so £500 per month (until the kids are 23

Each child would be entitled to 25% till age 23. If the pension is payable to them they would be able to utilise their tax-free allowance to receive it tax-free so best to do that rather than add it to your income.

also is the lump sum equal to three months pension (£1500)or three years?(£18000)

It's 3 years so approximately £18,000 but again should be higher due to CPI increase on the pension.


Sorry for your loss.

atush

I do bang on here about being married as opposed to not if you have children, and you show again why this would be/could be important. Not too long ago, unmarried partners couldn't inherit pensions.

but do check with CAB or elsewhere that your children can't claim a bereavement allowance themselves? Not that this would lessen any trauma they have suffered to date, but could be useful to them later?

And yes, the children's portion should be tax free so use some of it for their expenses, but do save the rest for them in S&S Jisas or other similar plans to help them in t he future.

tobyjuggler

Thanks so much I will just have to wait and see what their reply is I was really just after someone to double check that I had read the terms and got the figures about right, I will now make arrangements for bank accounts to be opened for the kids in each of their names so pension can be deposited there.
Thanks

xylophone

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/part7section9.pdf

7.34.2 The Paymaster will pay the child allowance on the
Agency's behalf, to the person responsible for the
child.

In view of this, it would be an idea to check the tax situation with the Administrator/HMRC.

If the child pension is the child's income, and it is taxed at source, it may be that a refund will need to be sought on the child's behalf by the parent.

Does each of the children have a JISA? If not, this might be the time to start one for each of them with the pension money?

If the OP had an ISA with the Halifax, 4% is available on the JISA.

http://www.halifax.co.uk/isas/cash-isas/junior-cash-isa/

https://www.gov.uk/junior-individual-savings-accounts/overview

tobyjuggler

Hi no the kids don't have an ISA and thats a fantastic idea that I hadn't thought of as it will provide them with a good start later in life I just need to see now as to what the figures are and if there is much difference from the online tool which is on the NHSBA site although I entered the salary and years correctly so can't see how it would vary much.

mgdavid

jem16 wrote: »

............
No it's not tax-free. Pension income is taxable and would be added to your normal income assuming you are working...........

but don't forget that if you are working and don't actually need this extra income you can put an equivalent amount into a personal pension or SIPP and get the tax back.

atush

tobyjuggler wrote: »

Hi no the kids don't have an ISA and thats a fantastic idea that I hadn't thought of as it will provide them with a good start later in life I just need to see now as to what the figures are and if there is much difference from the online tool which is on the NHSBA site although I entered the salary and years correctly so can't see how it would vary much.

.

Do by all means open a cash Jisa for the children to start.

But come april, a S&S isa for that money to be held long term for their future would be a very good idea. You can then have a think about what % into each.