Delay in tracing pension beneficiary

Caz_F

My husband died nearly 20 years ago at the age of 55. I have just received a letter from a pension company to tell me that, unbeknown to me, he had a retirement plan with them and as beneficiary of his estate, I am entitled to a lump sum or annuity. They tell me that mail to him had been returned marked "gone away" and they were first made aware of his death 7 years ago. I don't yet know how they found this out and so far they have avoided this question. I'm surprised that they have taken this amount of time to trace me. Does anyone know if companies have a legal duty to trace missing policyholders within a certain time or even at all? I would be glad to hear if anyone has had similar experiences.

xylophone

Did you (your husband's executor if different) check your husband's financial papers and records?

Would you have returned marked "gone away" any correspondence sent to your husband?

It is often the case that the onus is on the policy holder/deferred pensioner/ would be pensioner to claim the pension rather than on the administrator to remind the person in question.

Finst

There is no legal requirement for a pension scheme or company to check whether members are still alive, although many will perform a tracing exercise every so often to look for members who might have died, typically looking at people who are over retirement age by a good few years.

If the pension company does a tracing exercise for people more than 5 years past retirement age, and does so every 5 years, this would be the first time they would have attempted to trace your husband. Nothing terribly unusual in all of this

Caz_F

Thank you for your quick responses. I was executor and handled probate myself. Although there was documentation about other pensions, there was nothing about this one. I wouldn't have sent mail back to anyone without opening it and checking it first, even if several years had passed.

It seems wrong that companies are under no legal obligation to find missing pension holders. I wonder how many millions/billions of pounds of other people's money is sitting in their coffers quietly earning them interest.

dunstonh

I don't yet know how they found this out and so far they have avoided this question.

pension companies are required to trace people periodically and there are companies set up to do just that.

'm surprised that they have taken this amount of time to trace me.

In most cases, when mail is returned gone away, the change of address comes later. It costs to trace people so they wait a period.

Does anyone know if companies have a legal duty to trace missing policyholders within a certain time or even at all?

What are you trying to achieve? After all, you get to keep all the investment returns over that period.

Or are you going to suggest they pay you the value it was 7 years ago? They would like that if that is what you want!

It seems wrong that companies are under no legal obligation to find missing pension holders. I wonder how many millions/billions of pounds of other people's money is sitting in their coffers quietly earning them interest.

Companies do trace people as a matter of course. They are required to do so. However, they are not going to do it the minute someone's mail gets returned. Typically it happens at scheme retirement age or 75 or when they decide to employ the tracing company to do a bulk check.

Money does not sit there earning them interest.

atush

Did you move house after his death?

Caz_F

No, we were here for about five years before his death. However, he may have moved house after taking out the policy but before we got together.

kidmugsy

Caz_F wrote: »

However, he may have moved house after taking out the policy but before we got together.

Did he tell them his new address?

TonyMMM

Ultimately it is the executors role to check for things like this - but it can be difficult. He may well have taken out the policy long before you moved and not updated his address - they should be able to say what address they had for him.

However - they have now traced you so you can benefit from the pension.

These companies do actively look for people - I have a friend who spends all his working day tracing people for pension and investment companies, trying to sort out cases just like this. Probably how they found you now.

Caz_F

I think that's where the problem must lie because I have never seen any correspondence about it and can only assume that he had forgotten about the policy.

Caz_F

Thank you. From what you say about your friend, companies obviously do try to find missing beneficiaries which is good to know.