Mineworkers Pension Scheme Death Benefits

snagrat

My father has passed and I am investigating his MPS pension.

He started taking the pension just 6 months ago. He took a lump sum with a monthly payment. He had no wife or partner and no dependants.

I am reading the small print and from what I can tell a further lump sum will be paid on his death for 5 years of pension. As he has already taken about 6 months worth I believe his estate is entitled to 54months. Any outstanding payments I am expecting to be paid to his estate.

Does anyone know if this is correct or can offer any specific MPS advise.

Silvertabby

My sympathies.

Death grant lump sums are discretionary, but would only be paid to the estate as a last resort.

Do you know if your father completed a nomination form when he retired? If he did, the the lump sum would be paid directly to his nominated beneficiary(ies).

If he didn't, then the scheme trustees may decide to pay the grant to you and any siblings.

snagrat

Yes he completed a nomination form. 50/50 split with my sister.

His Will is also split 50/50 between the two of us with no other parties mentioned. It should be an easy estate to pass probate.

Surely all Trustees would just say no?

Silvertabby

snagrat wrote: »

Yes he completed a nomination form. 50/50 split with my sister.

His Will is also split 50/50 between the two of us with no other parties mentioned. It should be an easy estate to pass probate.

Surely all Trustees would just say no?

The money will be paid directly to you and and your sister. It is your property, and therefore excluded from your father's estate for IHT and probate purposes.

snagrat

We have currently left it with a solicitor to sort (for probate) but should we contacting the pension directly and notifying them of his death?

Silvertabby

snagrat wrote: »

We have currently left it with a solicitor to sort (for probate) but should we contacting the pension directly and notifying them of his death?

Yes. Do it on Monday, as the pension fund will have to finalise your father's pension account in order to avoid any overpayments. The lump sum grant will then be paid direct to your and and your sister's bank accounts, and it's your money to do with as you wish.

The grant does not form part of your father's estate for IHT or probate purposes (or even to pay his debts, if he has any), so your solicitor doesn't even need to know how much it is.

greenglide

The pension fund will, of course, want sight of a copy of the death certificate. They will probably want to see the will as well to me sure there is nothing contentious in it.

The solicitor ought to have asked if there are no pensions and other items to be settled. Either you or the solicitor can actually communicate with the pension scheme.

Is the solicitor working on a fixed price? For a straightforward estate it is probably better.

Silvertabby

Speaking as a retired LGPS administrator I recommend that OP speaks to the pension fund himself - ideally on Monday.

I've dealt with cases which have been left to solicitors and they have tended to drag on (pension benefits wise). I've also known solicitors to become 'confused' and add the value of the grant to the estate for the purposes of calculating their percentage fee.

By dealing direct, OP will be able to - hopefully - stop January's pension being overpaid, and should receive payment of the grant within a couple of weeks.

They will need to see an original death certificate plus your and your sister's birth certificates (plus a copy of your sister's marriage certificate, if applicable, to confirm her change of name). The presence of a recent nomination form does simplify things.

xylophone

https://www.mps-pension.org.uk/my-pension-is-in-payment/what-happens-if-i-die

Guidance above.