Who will "inherit" my pension?

SandraScarlett

Hi, I would be grateful for some advice please. I was recently widowed, and receive a Spousal Pension from my late husband's company.


I have 2 private pensions of my own, each of which pays me about £100 a month. I phoned the first one today, a small private company, to tell them that my DH had died, and asked, when I died, if the beneficiary of the pension could be transferred to my daughter.


They said that as she was over 22, this wouldn't happen, and the only way my pension could be paid to someone else was if I remarried, and subsequently died. Then my new grieving spouse could receive a spousal pension.


Is this correct, and is it worth me phoning the other company (Teachers' Pensions), or will they tell me the same thing?


Thank you.


xx

TH1878

SandraScarlett wrote: »

Hi, I would be grateful for some advice please. I was recently widowed, and receive a Spousal Pension from my late husband's company.


I have 2 private pensions of my own, each of which pays me about £100 a month. I phoned the first one today, a small private company, to tell them that my DH had died, and asked, when I died, if the beneficiary of the pension could be transferred to my daughter.


They said that as she was over 22, this wouldn't happen, and the only way my pension could be paid to someone else was if I remarried, and subsequently died. Then my new grieving spouse could receive a spousal pension.


Is this correct, and is it worth me phoning the other company (Teachers' Pensions), or will they tell me the same thing?


Thank you.


xx

They'll almost certainly tell you the same thing.

atush

Basically, once you draw a DB pension, only a spouse or Dependent child inherits a pension income.

DC pensions, not based on final salary are different. they have a 'pot' which can be inherited either before a pension is commenced, or once in Drawdown.

SandraScarlett

atush wrote: »

Basically, once you draw a DB pension, only a spouse or Dependent child inherits a pension income.

DC pensions, not based on final salary are different. they have a 'pot' which can be inherited either before a pension is commenced, or once in Drawdown.

Sorry, but could you explain what DB and DC mean please? Thanks.


xx

atush

there are definitions up in the sticky buried now. Used to be easy to find.

But DB means defined benefit (ie Final salary type ie FS) and DC defined contribution or money purchase type.

mgdavid

DB = defined benefit, aka final salary or salary-related. for example a '60ths' scheme where for every year's work service you get 1/60th of your leaving (final) salary, for life. There is no personal 'pot', the employer has to fund the scheme with enough millions so that all the pensions can be paid into the future.

DC = defined contribution, where you pay a percentage of your salary each month into a pension scheme, the employer usually matches it with a similar contribution, and your 'pot' is invested and builds up over the years.