The Government and Pension Protection Fund are stealing 43 years of my fathers pension investments

Lisa2108

Im looking for people who have had any experience dealing with the Pension Protection Fund, they have frozen my fathers pension benefits and now and are expecting to keep over 43 years of his private pension investment because he was not married or have children under 23 in full time education.
My father worked for the same company all his life from the age of 19 and paid into his private pension until he was made redundant 43 years later.  He passed away at 62, 2 years into his pension.  He had a death benefit on his pension but the PPF wont pay it out.
Iv pleaded with the Government and the PPF to advise this is not right, but they are not interested and are blaming each other.
I want people to get in touch if they have had any similar experiences because I am ready to take legal action against them.  But at my wits end from going over and over the same thing with  them again and not getting any straight answer from either of them.

Thank you 
Lisa

Nearlyold

Are you sure it was a Private Pension?  The Pension Protection Fund protects ex employees who were members of a defined benefit scheme where the employer became insolvent and there were insufficient funds in the pension to secure benefits at least equal to PPF compensation.

I'm assuming you are disappointed to find the PPF scheme rules provide for a widows pension and/or child's (defined as under 23 and still in full time education) pension but nothing otherwise on the passing of your father?  

Lisa2108

Yes it was a private pension. He was moved from a council pension to another company when the government privatised the section he worked for. 

Yes we are not entitled to survivors benefit as don’t fit the rules. Still how can someone have 43 years investment but can’t get any of it back  as he didn’t have the right circumstances? 

superbigal

That's how pensions work.  If he had lived till 110 the pension company would not cry foul.

Nearlyold

If those are the scheme rules - and there is nothing unusual about them, then that is what happens I'm afraid.

The scheme benefits that are paid are costed on the basis that some pensioners will live longer than others some will have widows, some won't. 

A Private Pension is one that you take out yourself aka a Personal Pension  - your father had a defined benefit/final salary scheme and any investments held belonged to the scheme not your father - he paid his scheme contributions in return for a pension for life and/ or other benefits in line with the scheme rules.

You have to keep in mind that the PPF scheme rules on Widows/Dependants benefits are probably more or less the same as the original employers scheme would have provided plus of course if the PPF hadn't stepped in then your father might not have received any pension at all or at best a reduced one.

Brynsam

No point asking an identical question on two different boards. All the answers you need (albeit not ones you want) at https://forums.moneysavingexpert.com/discussion/6193068/the-government-and-pension-protection-fund-are-keeping-43-years-of-my-fathers-pension-investment#latest

Undervalued

Lisa2108 said:

Yes it was a private pension. He was moved from a council pension to another company when the government privatised the section he worked for. 

Yes we are not entitled to survivors benefit as don’t fit the rules. Still how can someone have 43 years investment but can’t get any of it back  as he didn’t have the right circumstances? 

A pension is, in effect, as much a form or insurance as it is an investment. To some extent you are insuring yourself against living too long! Those that live to a ripe old age do well out of it, at the expense of those that sadly die young. It may have options such as a minimum number of years pension to be paid out and / or benefits such as a widow's pension. However these are all additional costs, financed by paying a lower pension than would be the case if it simply dies with you.

Nearlyold

Brynsam said:

No point asking an identical question on two different boards. All the answers you need (albeit not ones you want) at https://forums.moneysavingexpert.com/discussion/6193068/the-government-and-pension-protection-fund-are-keeping-43-years-of-my-fathers-pension-investment#latest

Good point - though the OP actually posted on this board first and presumably went to the Pension Board  35 mins or so later because she realised that was the more appropriate one for her query? (or perhaps she hoped the answers might be the ones she wanted)