The Government and Pension Protection fund are keeping 43 years of my fathers pension investment.

Tealblue

Lisa2108 said:

My father worked for the same company all his life from the age of 19 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 cant be right, but they are not interested and are leaving the blame with each other.
Im ready to take legal action against them but would be good to know of anyone else who has had any bad experiences dealing with them.

I am so sorry you have lost your father when he was so young.

The words on which to focus are 'he had a death benefit'.  Once a pension scheme falls into the PPF, the compensation (benefits) paid by the PPF don't align with what the original scheme promised. There are two particular differences when it comes to death benefits:

1. a spouse or partner receives a pension of 50%, even if the original scheme offered a higher %age for the spouse
2. there is no lump sum where a member dies within five years of the pension coming into payment. 

Given your father had no spouse/partner or eligible children, I'm afraid it follows that no sort of death benefit is due now.

Tealblue

cfw1994 said:

Lisa2108 said:

yes i am aware of the rules, my father had a death benefit, im not trying to get compensation, wonder if it was your 43 years investment down the drain, you would think it was pretty standard?  what is the point in paying into a pension?

As others have said, I echo the sentiments of sadness at losing your father at a relatively young age.

On your last line above: the point of a pension is to have some funding for you (& partner if around) once you stop work. Your father did enjoy that, albeit for a much too short time, sadly.  

The point is unfortunately not to provide an inheritance to children, although with Defined Contribution style pensions, that can be part of it.

Again, sorry for your loss, but please do not waste money on chasing legal help, or at least, not beyond a free meeting with a solicitor to confirm what you have read here.

A solicitor who knows nothing about pensions may be equally bemused. Probably a better idea to get free, impartial help from the experts: https://www.pensionsadvisoryservice.org.uk

xylophone

I had been wondering whether the OP was particularly aggrieved because the  original pension scheme would have paid a  lump sum death benefit to the estate  rather than to a dependant, to cover the amount he would have received between the date of  death (two years after the pension came into payment) and five years after that date  and the PPF does not.

ffacoffipawb

xylophone said:

I had been wondering whether the OP was particularly aggrieved because the  original pension scheme would have paid a  lump sum death benefit to the estate  rather than to a dependant, to cover the amount he would have received between the date of  death (two years after the pension came into payment) and five years after that date  and the PPF does not.

It is also possible that the original scheme did not have a 5 year guarantee. One of my two (sadly small) DBs doesn't.

xylophone

It is also possible that the original scheme did not have a 5 year guarantee. One of my two (sadly small) DBs doesn't.

Perfectly possible.

The OP does not say (which is why I asked the question) - I was looking for an explanation of why she felt entitled to a payment from a DB Scheme as a non dependant of the deceased.

atush

venison said:

Lisa2108 said:

yes i am aware of the rules, my father had a death benefit, im not trying to get compensation, wonder if it was your 43 years investment down the drain, you would think it was pretty standard?  what is the point in paying into a pension?

Like all investments a pension is a gamble, some people retire and live for another 30 years claiming their pension, others retire and die the day after, personally i've cashed all my DC pensions in just before lockdown so i can enjoy the £ while i'm able.

Bet you paid a boat load of tax, cashing in all your pensions.

ffacoffipawb

atush said:

venison said:

Lisa2108 said:

yes i am aware of the rules, my father had a death benefit, im not trying to get compensation, wonder if it was your 43 years investment down the drain, you would think it was pretty standard?  what is the point in paying into a pension?

Like all investments a pension is a gamble, some people retire and live for another 30 years claiming their pension, others retire and die the day after, personally i've cashed all my DC pensions in just before lockdown so i can enjoy the £ while i'm able.

Bet you paid a boat load of tax, cashing in all your pensions.

Probably means he / she sold all investments for cash but still within the pension wrapper. Would be silly to actually cash the pension and take it out of its tax wrapper, unless for health reasons where tax may not apply?

A_T

A DB pension is a bet on how long you live after retirement - there will be winners and losers

Thrugelmir

A_T said:

A DB pension is a bet on how long you live after retirement - there will be winners and losers

No one longer thinks in terms of pooled risk. In due course the cycle will go full circle.  With the cost benefits of pooled risk coming back to the fore.