USS Bereavement benefits for death in service

thegentleway

Hi, if I die my beneficiaries are entitled to lump sum and pension from USS. The lump sum element is fairly clear but I'm confused by the pension bit. Does that mean they get an income from the point of my death or that they get an income when they reach retirement age? Thanks

Silvertabby

Survivor pensions are payable from the day after the date of death, regardless of the age(s) of the recipients.

You appear to be referring to more than one beneficiary.  The rules re the payment of the one-off death grant/death in service and survivor  pensions are very different.  Whilst the death grant may be left to anyone, survivor pensions can only be paid to a spouse/civil partner/qualifying co-habiting partner and eligible children.

thegentleway

Thank you @Silvertabby I was hoping that would be the case. I think calling a pension rather than an income confused me a little.

I have one partner and one baby. From what I gather, my partner would get a lump sum and both my partner and my child would get a pension.

Thanks,

Tom

Silvertabby

thegentleway said:

Thank you @Silvertabby I was hoping that would be the case. I think calling a pension rather than an income confused me a little.

I have one partner and one baby. From what I gather, my partner would get a lump sum and both my partner and my child would get a pension.

Thanks,

Tom

Yes, as long as your partner meets the eligibility rules.  Again, depending on the scheme rules, a spouse/partner pension is paid for life or until they re-marry/co-habit.  In the case of a child's pension, that is payable until age 18 or 23 if still in full time education.

ADD:  Just had a google, and it seems that in the case of the USS, only legally married spouses/civil partners are automatically entitled to a survivor pension.  Pensions for co-habiting partners are only payable at the trustees discretion, which normally means that your partner would have to prove that she was financially dependant on you.  You will find a nomination form on the USS member website, so have a good read of the ts & cs on there 

NedS

Silvertabby said:

ADD:  Just had a google, and it seems that in the case of the USS, only legally married spouses/civil partners are automatically entitled to a survivor pension.  Pensions for co-habiting partners are only payable at the trustees discretion, which normally means that your partner would have to prove that she was financially dependant on you.  You will find a nomination form on the USS member website, so have a good read of the ts & cs on there 

Correct - my Financial Advisor highlighted this fact to me a few years back as part of our financial planning as we were not married at the time and civil partnerships were only an option for same sex couples. I had just assumed my partner as named beneficiary was covered. It worried us that any pension for my partner would be at the discretion of the Trustees given the scheme is in financial deficit (whether or not that would impact the decision of the Trustees). Anyway, it worried me that my partner may have to fight for pension provision having recently been bereaved.

thegentleway

Silvertabby said:

thegentleway said:

Thank you @Silvertabby I was hoping that would be the case. I think calling a pension rather than an income confused me a little.

I have one partner and one baby. From what I gather, my partner would get a lump sum and both my partner and my child would get a pension.

Thanks,

Tom

Yes, as long as your partner meets the eligibility rules.  Again, depending on the scheme rules, a spouse/partner pension is paid for life or until they re-marry/co-habit.  In the case of a child's pension, that is payable until age 18 or 23 if still in full time education.

ADD:  Just had a google, and it seems that in the case of the USS, only legally married spouses/civil partners are automatically entitled to a survivor pension.  Pensions for co-habiting partners are only payable at the trustees discretion, which normally means that your partner would have to prove that she was financially dependant on you.  You will find a nomination form on the USS member website, so have a good read of the ts & cs on there 

I did the forms. I put my partner as beneficiary and my daughter as dependant. Sounds like I need to add my partner as a dependant as well. I can't find ts & cs on the website though.

thegentleway

NedS said:

Silvertabby said:

ADD:  Just had a google, and it seems that in the case of the USS, only legally married spouses/civil partners are automatically entitled to a survivor pension.  Pensions for co-habiting partners are only payable at the trustees discretion, which normally means that your partner would have to prove that she was financially dependant on you.  You will find a nomination form on the USS member website, so have a good read of the ts & cs on there 

Correct - my Financial Advisor highlighted this fact to me a few years back as part of our financial planning as we were not married at the time and civil partnerships were only an option for same sex couples. I had just assumed my partner as named beneficiary was covered. It worried us that any pension for my partner would be at the discretion of the Trustees given the scheme is in financial deficit (whether or not that would impact the decision of the Trustees). Anyway, it worried me that my partner may have to fight for pension provision having recently been bereaved.

What did you do in the end? I am also concerned about my partner struggling to prove she's financially dependent.

thegentleway

Also what is "pension accrued" in

How does this work?
If you had built up a pension of £2,196.45 a year and the pension accrued in the last 12 months was £562.50 and you died in service aged 45, your children’s pension (shared equally between two or more children) would be 75% of the pension built up so far, plus 20 times the last 12 months’ pension (20 being the number of years between date of death and age 65).

Silvertabby

thegentleway said:

NedS said:

Silvertabby said:

ADD:  Just had a google, and it seems that in the case of the USS, only legally married spouses/civil partners are automatically entitled to a survivor pension.  Pensions for co-habiting partners are only payable at the trustees discretion, which normally means that your partner would have to prove that she was financially dependant on you.  You will find a nomination form on the USS member website, so have a good read of the ts & cs on there 

Correct - my Financial Advisor highlighted this fact to me a few years back as part of our financial planning as we were not married at the time and civil partnerships were only an option for same sex couples. I had just assumed my partner as named beneficiary was covered. It worried us that any pension for my partner would be at the discretion of the Trustees given the scheme is in financial deficit (whether or not that would impact the decision of the Trustees). Anyway, it worried me that my partner may have to fight for pension provision having recently been bereaved.

What did you do in the end? I am also concerned about my partner struggling to prove she's financially dependent.

Ned said "we were not married at the time" so sounds like they are married now.

If that is not an option for you, then I would suggest that you ask USS exactly what they would require.  In the case of the LGPS, it's joint bank account, joint mortgage etc - but the BIG difference is that LGPS (eligible) partners pensions are a right, and not subject to trustee discretion.

This is something you will need to clarify with the USS for peace of mind.  Or book that appointment with the registrar.

NedS

Silvertabby said:

thegentleway said:

NedS said:

Silvertabby said:

ADD:  Just had a google, and it seems that in the case of the USS, only legally married spouses/civil partners are automatically entitled to a survivor pension.  Pensions for co-habiting partners are only payable at the trustees discretion, which normally means that your partner would have to prove that she was financially dependant on you.  You will find a nomination form on the USS member website, so have a good read of the ts & cs on there 

Correct - my Financial Advisor highlighted this fact to me a few years back as part of our financial planning as we were not married at the time and civil partnerships were only an option for same sex couples. I had just assumed my partner as named beneficiary was covered. It worried us that any pension for my partner would be at the discretion of the Trustees given the scheme is in financial deficit (whether or not that would impact the decision of the Trustees). Anyway, it worried me that my partner may have to fight for pension provision having recently been bereaved.

What did you do in the end? I am also concerned about my partner struggling to prove she's financially dependent.

Ned said "we were not married at the time" so sounds like they are married now.

If that is not an option for you, then I would suggest that you ask USS exactly what they would require.  In the case of the LGPS, it's joint bank account, joint mortgage etc - but the BIG difference is that LGPS (eligible) partners pensions are a right, and not subject to trustee discretion.

This is something you will need to clarify with the USS for peace of mind.  Or book that appointment with the registrar.

Yes, we are married now so no longer an issue. So long as it's at the discretion of the Trustees, they get to decide. Turning it around, as a member of the scheme, I would expect the Trustees to act in MY best interests, and I don't see how paying out discretionary pension to a partner who isn't automatically eligible by scheme rules is in MY best interests (unless I've died and it's my partner) when the scheme is in financial deficit and struggling to meet it's obligations to it's members. Hence my previous concern.

Brynsam

NedS said:

Silvertabby said:

thegentleway said:

NedS said:

Silvertabby said:

ADD:  Just had a google, and it seems that in the case of the USS, only legally married spouses/civil partners are automatically entitled to a survivor pension.  Pensions for co-habiting partners are only payable at the trustees discretion, which normally means that your partner would have to prove that she was financially dependant on you.  You will find a nomination form on the USS member website, so have a good read of the ts & cs on there 

Correct - my Financial Advisor highlighted this fact to me a few years back as part of our financial planning as we were not married at the time and civil partnerships were only an option for same sex couples. I had just assumed my partner as named beneficiary was covered. It worried us that any pension for my partner would be at the discretion of the Trustees given the scheme is in financial deficit (whether or not that would impact the decision of the Trustees). Anyway, it worried me that my partner may have to fight for pension provision having recently been bereaved.

What did you do in the end? I am also concerned about my partner struggling to prove she's financially dependent.

Ned said "we were not married at the time" so sounds like they are married now.

If that is not an option for you, then I would suggest that you ask USS exactly what they would require.  In the case of the LGPS, it's joint bank account, joint mortgage etc - but the BIG difference is that LGPS (eligible) partners pensions are a right, and not subject to trustee discretion.

This is something you will need to clarify with the USS for peace of mind.  Or book that appointment with the registrar.

Yes, we are married now so no longer an issue. So long as it's at the discretion of the Trustees, they get to decide. Turning it around, as a member of the scheme, I would expect the Trustees to act in MY best interests, and I don't see how paying out discretionary pension to a partner who isn't automatically eligible by scheme rules is in MY best interests (unless I've died and it's my partner) when the scheme is in financial deficit and struggling to meet it's obligations to it's members. Hence my previous concern.

The scheme being in deficit is unlikely to have any bearing on the decision of the trustees. When exercising a discretion, they are bound by a set of principles (known as the Edge Principles for anyone into these things!) which they need to follow, and if they tried to claim a deficit was a 'relevant factor' when reaching a conclusion about whether or not a partner's pension should be awarded, the Pensions Ombudsman may have something to say about that decision.