USS Bereavement benefits for death in service

Brynsam

thegentleway said:

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).

Accrued means 'built up'. The arithmetic would be:

(75% x £2,196.45) + (£562.50 x 20) = £2,772.338

thegentleway

Brynsam said:

thegentleway said:

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).

Accrued means 'built up'. The arithmetic would be:

(75% x £2,196.45) + (£562.50 x 20) = £2,772.338

Thank you, how do I work out the pension accrued? Is that my last 12 months contribution or does it include my employer contributions?

Brynsam

thegentleway said:

Brynsam said:

thegentleway said:

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).

Accrued means 'built up'. The arithmetic would be:

(75% x £2,196.45) + (£562.50 x 20) = £2,772.338

Thank you, how do I work out the pension accrued? Is that my last 12 months contribution or does it include my employer contributions?

Neither - it is the actual pension you've built up in the previous 12 months. I'd assumed from your question that the scheme has supplied the figure of £562.50, although I confess I was a bit baffled both by the figures you seemed to be quoting and also the 'formula', which isn't something familiar to me in terms of USS membership. Probably worth contacting them direct in the New Year and checking.

Marcon

NedS said:

Silvertabby said:

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.

Trustees are required to act in accordance with the rules and in the best interests of all beneficiaries, whether actual or potential. Where they have a discretion, that discretion isn't necessarily related to whether they 'want' or 'think they should' pay a pension to, say, an unmarried partner, or to someone looking for ill health early retirement, but more deciding whether that individual meets the requirements for such a pension under the rules of the scheme. 

relishy57

In 2011 I was a beneficiary of my late husbands pension. It took a few weeks for the decision to be made by the trustees on how much pension and lump sum was to be paid. 

I was 54 at the time and financially independent of my husband and our youngest child had just left university. Husband had retired early on ill health grounds and was almost 66 when he died so drawing his pension already.

Marcon

relishy57 said:

In 2011 I was a beneficiary of my late husbands pension. It took a few weeks for the decision to be made by the trustees on how much pension and lump sum was to be paid. 

I was 54 at the time and financially independent of my husband and our youngest child had just left university. Husband had retired early on ill health grounds and was almost 66 when he died so drawing his pension already.

But you were married, so the question of financial dependence is unlikely to have arisen in respect of the pension. 

thegentleway

Brynsam said:

thegentleway said:

Brynsam said:

thegentleway said:

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).

Accrued means 'built up'. The arithmetic would be:

(75% x £2,196.45) + (£562.50 x 20) = £2,772.338

Thank you, how do I work out the pension accrued? Is that my last 12 months contribution or does it include my employer contributions?

Neither - it is the actual pension you've built up in the previous 12 months. I'd assumed from your question that the scheme has supplied the figure of £562.50, although I confess I was a bit baffled both by the figures you seemed to be quoting and also the 'formula', which isn't something familiar to me in terms of USS membership. Probably worth contacting them direct in the New Year and checking.

Eh? Surely the pension I’ve built up in the previous 12 months is my and my employers’ contributions in the last 12 months plus or minus any movements in the funds it’s invested in?! How else is it built up?! 
Those figures are an example they cite. I would like to work out what it would be for me!

relishy57

Marcon said:

relishy57 said:

In 2011 I was a beneficiary of my late husbands pension. It took a few weeks for the decision to be made by the trustees on how much pension and lump sum was to be paid. 

I was 54 at the time and financially independent of my husband and our youngest child had just left university. Husband had retired early on ill health grounds and was almost 66 when he died so drawing his pension already.

But you were married, so the question of financial dependence is unlikely to have arisen in respect of the pension. 

I was just trying to say probably not very well that the trustees do look at each individual case and decide how they will pay out any benefits. I got a very detailed breakdown of how they had arrived at their decision.

atush

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.

Get married, after all you have a child together.  Solves all sorts of problems, incl inheritance tax etc.  just do it

hyubh

thegentleway said:

Brynsam said:

Neither - it is the actual pension you've built up in the previous 12 months. I'd assumed from your question that the scheme has supplied the figure of £562.50, although I confess I was a bit baffled both by the figures you seemed to be quoting and also the 'formula', which isn't something familiar to me in terms of USS membership. Probably worth contacting them direct in the New Year and checking.

Eh? Surely the pension I’ve built up in the previous 12 months is my and my employers’ contributions in the last 12 months plus or minus any movements in the funds it’s invested in?! How else is it built up?!

USS 'Retirement Builder' benefits are fully DB (specifically, a form of CARE DB, like modern public sector schemes), it's only salary over the DB pensionable pay cap (£55,550) that has contributions going into the DC 'Investment Builder'. And being DB means investment performance is irrelevant for your benefits, instead employers take the hit if your promised pension proves more costly than first thought.