Overturning a Widow's Pension restriction

paddy's_mum

I'm putting this query here because it is primarily a 'people' question rather than strictly pensions or high finance.

We have recently discovered that my husband's retirement pensions have clauses hidden in the small print that no widow's provision will be paid if the widow in question is more than 10 years younger than the husband nor if the claimant is not the wife he was married to at the time he retired.

As a middle-aged woman, I married a widower - now 65, I am 12 years younger and could face genuine financial difficulties in the event of his death having only the state pension in my own right.

Is it possible to challenge these restrictions, perhaps because the law on enforceable terms has changed? Has anybody successfully done so and if so, on what grounds?

Is there a specialist professional people go to for advice on this particular narrow question? We can't be the only couple where the wife may be caught out by her husband signing up for terms and conditions prevailing 40 or more years ago and not looked at by him since.

duchy

I suspect it'll be a case of "He should have known what he was paying for" and something he should have checked when he got married rather than assumed

I'm sure a lot of people assume they are covered and only discover at the worst possible time that they are not.

I think this would be better on the pensions board as people here will be focusing on the morality rather than the practicalities.

euronorris

Are the pensions already in payment?


If not, he may be able to exercise his open market option and use the pension fund to purchase an annuity with a widow's benefit that will pay out to you. However, I would strongly recommend that you speak to a financial adviser about this (and all other options available).


An annuity from the open market isn't always better than the payment offered by the existing scheme, and there may be other, better, ways to achieve the financial security for yourself that you are concerned about.


But no one can advise you on here. A financial adviser, who specialises in retirement planning/pensions would be your best bet.

Pollycat

duchy wrote: »

I think this would be better on the pensions board as people here will be focusing on the morality rather than the practicalities.

I agree with the above.

Seabee42

I would ask them to show you the section covering this in the scheme rules. If its in there as stated then the trustees are legally obliged to follow them. If that's how it is then you can at least plan for such I very much doubt you can overturn them!


Under the plan I run pensions are reduced if the spouses is more than ten years younger to reflect the fact that it will be expected to be paid for longer.

Mr_Toad

Many pension schemes have similar clauses.

Mine states if I divorce and remarry my second wife gets nothing.

With regards to the age thing it was not uncommon for an older widower to marry a younger friend purely so that she would get the widows pension when he died rather than his pension dying with him until the pension schemes closed that loophole.

securityguy

"Many pension schemes have similar clauses."

I think it's very common in public sector schemes, and scheme which are public sector heritage or inspiration. USS, for example, the university academic scheme, pay a reduced widow's pension if the widow/er is substantially younger, and I think I'm right in saying that both teaching and NHS pensions do as well. I think the clause saying that marriage after retirement doesn't count is also fairly common.

Mr_Toad

securityguy wrote: »

"Many pension schemes have similar clauses."

I think it's very common in public sector schemes, and scheme which are public sector heritage or inspiration. USS, for example, the university academic scheme, pay a reduced widow's pension if the widow/er is substantially younger, and I think I'm right in saying that both teaching and NHS pensions do as well. I think the clause saying that marriage after retirement doesn't count is also fairly common.

Yes, mine is a Civil Service final salary pension. I joined what was Post Office Telephones in 1973 when they were looking for people to train in computing. They sponsored me through Uni to study micro electronics and computing and paid me to do it. When we were privatised our Civil Service pension and other rights were protected.

I feel very fortunate to have a proper pension. I retired 2.5 years ago at 55 on what was effectively half pay and half of what was a really good salary is very nice.

I despair for my children, it looks like they'll never be able to retire.

LilElvis

securityguy wrote: »

"Many pension schemes have similar clauses."

I think it's very common in public sector schemes, and scheme which are public sector heritage or inspiration. USS, for example, the university academic scheme, pay a reduced widow's pension if the widow/er is substantially younger, and I think I'm right in saying that both teaching and NHS pensions do as well. I think the clause saying that marriage after retirement doesn't count is also fairly common.

My husband's pension scheme is not public sector, but also states that there will/may be a reduction in the amount payable to a surviving spouse who is more than 8 years younger. It isn't hidden by any means, it is clearly stated in every annual projection he receives and this is 3 pages of normal sized font.

missbiggles1

securityguy wrote: »

"Many pension schemes have similar clauses."

I think it's very common in public sector schemes, and scheme which are public sector heritage or inspiration. USS, for example, the university academic scheme, pay a reduced widow's pension if the widow/er is substantially younger, and I think I'm right in saying that both teaching and NHS pensions do as well. I think the clause saying that marriage after retirement doesn't count is also fairly common.

I'm in the teachers' pension scheme (as was my late husband) and I'm pretty sure that isn't the case. However, if someone's claiming a widow's pension and then remarries or cohabits, the widow's pension ceases. (Not the same thing, I know.)

claretmatt

I would certainly suggest getting a copy of the scheme rules and would speak to the trustees about the situation.

I would also speak to the Pension Advisory Service before considering if you need financial or legal advice.

It would be worthwhile considering insuring your husband using a whole of life policy. This is health and premium dependent and I would look for advice on this matter.

Hope it works out for you.