What does "the pension was compounded in 2016" mean?

faveted

Well, exactly that really. My mum passed away in the summer and, as administrator of the estate I am trying to round up any pensions she might have had in place. I wrote to her previous employer and was told that the pension was compounded in 2016, therefore there are no benefits held within their pension scheme. Does this mean that she cashed it, or moved it somewhere? I can't seem to find the answer definitively on Google!

Marcon

Sounds like a typo - I suspect it should have read 'pension was commuted', which meant it was a very small pension and she took the lot in cash.

faveted

Marcon said:

Sounds like a typo - I suspect it should have read 'pension was commuted', which meant it was a very small pension and she took the lot in cash.

Thank you for your help. That does sound very likely and something that she would have done. I will contact them to confirm. Out of interest, do you know what 'compounded pension' actually means?

Albermarle

 Out of interest, do you know what 'compounded pension' actually means?

AS far as I know it does not mean anything , but could be wrong .

Marcon

faveted said:

Marcon said:

Sounds like a typo - I suspect it should have read 'pension was commuted', which meant it was a very small pension and she took the lot in cash.

Thank you for your help. That does sound very likely and something that she would have done. I will contact them to confirm. Out of interest, do you know what 'compounded pension' actually means?

It means someone's predictive text on their phone, or the automatic spell checker on their PC, did its bit and the sender didn't double check!

faveted

OK, ha ha, I guess that's why I couldn't find a definitive answer on Google. Thanks to both of you for your help.