Miners Pension Scheme

UK4ME

Hi this is my first post so if it's in the wrong place I do apologise. My mum has been getting my deceased dads pit pension monthly (widows reduction) for the past 8 years.. She had a letter from mps earlier this year asking if she wanted a lump sum of over £24000, that was left 'in the pot' or just carry on getting monthly payments.

Mum opted for monthly payments until the pot was empty. My mum has now passed away and I wondered what happens to 'the pot' amount? I informed mps that my mum had passed away and they said obviously monthly payments would stop and they'd be in touch within 10 days. I'm assuming there'll be no lump sum to go to her estate but a friend thinks there might be.

Any help would be gratefully received. Thanks :undecided

Finst

Firstly, sorry for your loss.

There will not be any further lump sum.

The miners pension scheme is/was a final salary scheme - members don't have individual pots, they have a promise to pay a certain level of pension, however much that costs.

The 24k was an offer by the pension scheme to buy that pension back from your mum, based on the expected cost of providing the pension, but there wasn't a pot specifically for you mum.

What's left of that notional £24k the pension scheme was budgeting for to pay your mum's pension will now be used to pay the pensions of other members of the scheme who live longer than expected.

dunstonh

Sorry for your loss.

Mum opted for monthly payments until the pot was empty. My mum has now passed away and I wondered what happens to 'the pot' amount?

There is no pot. It was not that type of pension. She was given a choice of £24k as a lump sum with income stopping OR the income for the rest of her life.

Schemes often offer this to control their liabilities and costs. It tends to be something offered to smaller incomes. it is effectively a gamble by the pension fund and by the person in receipt of the income. If the person lives a long time, they would have been better taking the income. if they do not live long after, they would have been better taking the lump sum. And vice versa for the pension company.

The bottom line is that there is no lump sum now.

Bootsox

Is/was there any help with funeral expenses from the union/pension?

UK4ME

No help with anything. Then again I didnt ask as I didnt know they might have helped.