Spouses pension

adaips

My mother passed away in March, after nearly four months of chasing, the pension company finally came back with an offer for my father. Its only a small pot, he could have £700 a year or lump sum of just over £8000. However if he chooses the lump sum of £8000 he cant have it due to the guaranteed minimum pension court case in 2018. It may take years to check if payment is ok.
this seems like blackmail to me, any ideas if this is normal?

Albermarle

£700 pa looks a lot better deal than a lump sum of £8K 
How old is he and will the £700 pa go up with inflation each year ?

Silvertabby

Albermarle said:

£700 pa looks a lot better deal than a lump sum of £8K 
How old is he and will the £700 pa go up with inflation each year ?

Especially as all of the lump sum is taxable income.  

ffacoffipawb

adaips said:

My mother passed away in March, after nearly four months of chasing, the pension company finally came back with an offer for my father. Its only a small pot, he could have £700 a year or lump sum of just over £8000. However if he chooses the lump sum of £8000 he cant have it due to the guaranteed minimum pension court case in 2018. It may take years to check if payment is ok.
this seems like blackmail to me, any ideas if this is normal?

Albermarle said:

£700 pa looks a lot better deal than a lump sum of £8K 
How old is he and will the £700 pa go up with inflation each year ?

£700 pa only good if, as you say, we know his age. If he is very old it could be a very poor deal.

xylophone

https://www.ftadviser.com/pensions/2019/08/21/court-hearing-on-pension-equalisation-earmarked-for-2020/?page=1
The problem has come up before on a couple of occasions.

adaips

Dad is 77 so needs to live at least 12 years, dont know about the inflation, have to ask, thanks

ffacoffipawb

adaips said:

Dad is 77 so needs to live at least 12 years, dont know about the inflation, have to ask, thanks

Annual payment looks poor value to me.

xylophone

Re GMP inheritance provisions
https://www.gov.uk/guidance/provide-a-pension-for-your-scheme-member

Dox

adaips said:

My mother passed away in March, after nearly four months of chasing, the pension company finally came back with an offer for my father. Its only a small pot, he could have £700 a year or lump sum of just over £8000. However if he chooses the lump sum of £8000 he cant have it due to the guaranteed minimum pension court case in 2018. It may take years to check if payment is ok.
this seems like blackmail to me, any ideas if this is normal?

It isn't a 'pot' at all - this is a defined benefit scheme, where benefits are paid according to the rules of the particular scheme. The GMP issue is hideously complicated and has been going on for decades already, so no, it isn't blackmail, just plain infuriating.