Death in Service beneficiary

Dox

Sunflower2102 wrote: »

No just the actual form, I just trying to get mentally ready for any contention. I will seek advice from a lawyer as so much conflicting information. Thanks for your reply appreciated.

Why have you ignored the excellent advice in post 7? Any high street lawyer will have next to no experience of this sort of issue - and any that do should be pointing you towards TPAS themselves!

I am not sure what you mean by 'conflicting information'. The facts are very simple: trustees are guided (but not bound) by an expression of wish/nomination form. Even if this is recent and unambiguous, they are still required to make further enquiries, which would include asking for the will (in this case you say there isn't one) and talking to work colleagues. They have to follow the rules of their scheme, take into account all relevant factors/not take into account any irrelevant factors, not be perverse and not take a decision no reasonable trustee would make.

If the trustees (often via a company's HR department) ask about your relationship, you simply answer honestly.

If your friend's wife was being financially supported by her husband, she will be telling the trustees that (from what you say she knows about the content of the form, assuming what your friend has told you is actually what he's said on it) and they may well conclude that she is entitled to part of the payout on grounds of financial dependency.

Provided the trustees have followed the guiding principles above, they can take whatever decision they see fit and it would be most unlikely either the Pensions Ombudsman or a court would overturn it. Ultimately it is their decision, not yours, his wife's or anyone else's.

Helpful link: https://www.pensions-ombudsman.org.uk/guidance/discretionary-decisions/

NB: depending on how the death in service scheme is structured, it may not fall within the Pensions Ombudsman's remit, so court action would be the only option - hugely expensive and almost bound to fail.

Silvertabby

So sorry for your loss. If the family contest the expressions of wishes form, then the trustees will make the final decision. This will take time - weeks if not months.

If they do decide to pay you the money, then you could always give it to the family if that is what you want to do.

MEM62

Marcon wrote: »

Legal advice won't help you any more than the help you can get from TPAS, free (and probably far better informed): https://www.pensionsadvisoryservice.org.uk
.

Struggling to see how the Pensions Advisory Service is relevant. The OP is talking about DIS benefit, nothing to do with pensions. In the case of DIS the appointed trustees of the scheme will decide on the appropriate course of action. It is very unusual in these cases not to follow the expression of wishes as this would require exceptional circumstances.

Sea_Shell

MEM62 wrote: »

Struggling to see how the Pensions Advisory Service is relevant. The OP is talking about DIS benefit, nothing to do with pensions. In the case of DIS the appointed trustees of the scheme will decide on the appropriate course of action. It is very unusual in these cases not to follow the expression of wishes as this would require exceptional circumstances.

Where does the money usually come from to pay this benefit. Employers funds? Insurance policy?

MEM62

Sea_Shell wrote: »

Where does the money usually come from to pay this benefit. Employers funds? Insurance policy?

In our case it is a specific insurance policy. The premium is calculated against our total salary cost and pays out 5 x the annual salary of any employee that dies whilst employed by the company. Myself and another colleague are the trustees. All employees complete an EOW form. Under the guidance we have received, we are entitled to make a decision that is not in accordance with the EOW form but we must have strong reasons to justify and variation. Ultimately, though, the decision is ours and this falls outside the deceased state.

Brynsam

MEM62 wrote: »

Struggling to see how the Pensions Advisory Service is relevant. The OP is talking about DIS benefit, nothing to do with pensions. In the case of DIS the appointed trustees of the scheme will decide on the appropriate course of action. It is very unusual in these cases not to follow the expression of wishes as this would require exceptional circumstances.

Everything to do with pensions! The majority of DIS schemes (even stand-alone schemes providing death benefits only) are technically pension schemes. Have a look at the Pensions Ombudsman's website for examples.

A much smaller number are established under different legislation, but even then TPAS is able to become involved (although in these cases, the DIS scheme is not within the remit of the Pensions Ombudsman).

You might want to check which sort of trust you are responsible for.

Brynsam

Sea_Shell wrote: »

Where does the money usually come from to pay this benefit. Employers funds? Insurance policy?

Usually from an insurance policy, although many employers choose to self-insure at least part of the DIS benefit.

SevenOfNine

No will & by default we would have inherited everything. The DiS fell outside of the estate so we gave the employer the death cert, told them we would be applying for Letters of Administration & stepped back, leaving them to deal with the DiS with the pension company trustees.

The pension company trustees wrote to us & advised there was a named beneficiary, nominated over 3 years earlier (they did not specify who it was). They asked if there were any circumstances they should be made aware of prior to releasing the funds (no amount specified) in accordance with the wishes of the deceased.

At THAT point it's possible your friend's wife might make a claim for your friend's wishes to be set aside altogether, or the fund distributed differently. If she does that you won't be left out of the process given that you are a named beneficiary, you will be approached then & have your opportunity to state your case.

We told the trustees to pay out in accordance with the nomination form, don't turn this into a battle prematurely.

74jax

It seems strange, to me, that he would include a friend over his child, that is just my view. I'm guessing if you were best friends you have a relationship with his child. How old is this child. I understand you saying the child is catered for, but I doubt very much the child can afford to turn down half the death in service.

I completely understand it was his wishes, but I don't understand them. And I think the trustees may have difficulty too. Had you been partners, dependant on each other etc than maybe. But a friend over a child really needs more legs I think

Sunflower2102

He hasn’t chosen me over his child he was an amazing father. We were the closest of friends so chose me as one of his beneficiaries.