Pension/annuity final payment

turquoisespiff

My Dad had a small sum invested with Legal and General pension which gave him a payment of about £500 a year, paid into his current account the day before his birthday. This year he died, 2 weeks before his birthday.

Legal and General seem to be saying that there is no part payment due for the 50 weeks of the year before he died, but I've no idea if this is correct or not (originally they told me he didn't have anything with them, because they'd sold it on to ReAssure, but eventually ReAssure informed me that they hadn't). Do annual pension payments only pay out at all if you make it to the significant date? 

Marcon

You need to get them to confirm the precise terms of the annuity. If it was paid in advance, then no balancing payment is due. 

xylophone

Legal and General seem to be saying that there is no part payment due for the 50 weeks of the year before he died,

Is there any chance that these annual payments are in advance?

turquoisespiff

xylophone said:

Legal and General seem to be saying that there is no part payment due for the 50 weeks of the year before he died,

Is there any chance that these annual payments are in advance?

The letter I got from them, which details the payment he had on 2 September 2019 says that "Mr P's pension was paid by yearly instalments in arrears". It may be that he had to live the full year to qualify, I'm just not clear and the person I'm communicating with doesn't seem to be able to understand or answer the question!

xylophone

"Mr P's pension was paid by yearly instalments in arrears". It may be that he had to live the full year to qualify, I'm just not clear and the person I'm communicating with doesn't seem to be able to understand or answer the question!

Do you have the original documentation setting up the annuity? It should set out the terms on which it was paid.

And see https://www.veracityfp.co.uk/personal-pensions/all-you-need-to-know-about-buying-an-annuity

Proportion
Proportion is only relevant if you choose to receive your annuity income payments in arrears. If you choose ‘proportion’, a final proportionate payment will be made to cover the period between your last payment and the date of your death. If you choose without proportion, your final annuity income payment will be the last normal payment before you die. 

Do you know whether with or without proportion was chosen?

turquoisespiff

xylophone said:

"Mr P's pension was paid by yearly instalments in arrears". It may be that he had to live the full year to qualify, I'm just not clear and the person I'm communicating with doesn't seem to be able to understand or answer the question!

Do you have the original documentation setting up the annuity? It should set out the terms on which it was paid.

And see https://www.veracityfp.co.uk/personal-pensions/all-you-need-to-know-about-buying-an-annuity

Proportion
Proportion is only relevant if you choose to receive your annuity income payments in arrears. If you choose ‘proportion’, a final proportionate payment will be made to cover the period between your last payment and the date of your death. If you choose without proportion, your final annuity income payment will be the last normal payment before you die. 

Do you know whether with or without proportion was chosen?

Thank you, that's really helpful. Sadly, when Dad was 'sorting out his finances' he seems to have scanned some  documents onto his computer, which neither he nor we knew the password to, and shredded the originals. I managed to find an old letter that provided an estimate and one that said the Government were making important changes to pension plans in 2001, which gave me a reference number, but that was it. It's not a lot of money to quibble over, but if it was due to Dad he should get it. 

Marcon

turquoisespiff said:

xylophone said:

"Mr P's pension was paid by yearly instalments in arrears". It may be that he had to live the full year to qualify, I'm just not clear and the person I'm communicating with doesn't seem to be able to understand or answer the question!

Do you have the original documentation setting up the annuity? It should set out the terms on which it was paid.

And see https://www.veracityfp.co.uk/personal-pensions/all-you-need-to-know-about-buying-an-annuity

Proportion
Proportion is only relevant if you choose to receive your annuity income payments in arrears. If you choose ‘proportion’, a final proportionate payment will be made to cover the period between your last payment and the date of your death. If you choose without proportion, your final annuity income payment will be the last normal payment before you die. 

Do you know whether with or without proportion was chosen?

Thank you, that's really helpful. Sadly, when Dad was 'sorting out his finances' he seems to have scanned some  documents onto his computer, which neither he nor we knew the password to, and shredded the originals. I managed to find an old letter that provided an estimate and one that said the Government were making important changes to pension plans in 2001, which gave me a reference number, but that was it. It's not a lot of money to quibble over, but if it was due to Dad he should get it. 

Write to L&G (preferably by e-mail) and ask them to confirm the exact terms of the annuity. If you don't sort it out to your satisfaction, it'll go on rankling.

Keep_pedalling

turquoisespiff said:

xylophone said:

"Mr P's pension was paid by yearly instalments in arrears". It may be that he had to live the full year to qualify, I'm just not clear and the person I'm communicating with doesn't seem to be able to understand or answer the question!

Do you have the original documentation setting up the annuity? It should set out the terms on which it was paid.

And see https://www.veracityfp.co.uk/personal-pensions/all-you-need-to-know-about-buying-an-annuity

Proportion
Proportion is only relevant if you choose to receive your annuity income payments in arrears. If you choose ‘proportion’, a final proportionate payment will be made to cover the period between your last payment and the date of your death. If you choose without proportion, your final annuity income payment will be the last normal payment before you die. 

Do you know whether with or without proportion was chosen?

Thank you, that's really helpful. Sadly, when Dad was 'sorting out his finances' he seems to have scanned some  documents onto his computer, which neither he nor we knew the password to, and shredded the originals. I managed to find an old letter that provided an estimate and one that said the Government were making important changes to pension plans in 2001, which gave me a reference number, but that was it. It's not a lot of money to quibble over, but if it was due to Dad he should get it. 

If you still have the computer it would not be difficult to access the files in the hard drive.