Pension payment to be returned if you pass away mid month?

Tonksie77

My grandmother sadly passed away in March of this year.  She had a workplace pension that was paid monthly in advance.  I have a solicitor dealing with my grandmothers estate. My solicitors have advised me that the pension company have asked for Marchs payment to be returned as my grandmother passed away mid month!!!  My solicitor said she has never heard of such a thing - she’s been in the business 25 years. Has anyone else experienced this?  

xylophone

She had a workplace pension that was paid monthly in advance.  

This is the  reason for  requesting the return of the pension?

dunstonh

If it was paid "without proportion" then there is no proportionate payment in the month of death.  If it is paid "with proportion" then there is.

Sometimes they may ask for the full amount to be returned so they can pay the proportionate amount.  Sometimes they ask for the difference back.   Its all down to the terms.

pip895

They clawed back my Dads Final Month - He did die on the first day of the month though..

Malthusian

dunstonh said:

If it was paid "without proportion" then there is no proportionate payment in the month of death.  If it is paid "with proportion" then there is.

But the OP's grandmother's pension was "monthly in advance" and AFAIK "with / without proportion" only applies to pensions paid monthly in arrears.

OP: Are you sure the payment wasn't made after your grandmother died? If so the scheme is correct that it must be returned.

If not I agree with your solicitor that it's very strange, and I'd double check that the scheme hasn't made a mistake (thinking that a payment was made after death when it was actually before).

Ceme3000

Common practice to pay in advance and ask the estate to return any overpayment. I used to administer a pensioners payroll years ago.  

The trustees have an obligation to the other members of the scheme not to overpay anyone. 

Tonksie77

March payment was paid the end of February and my grandmother passed on the 15th March.  I have no issue paying back a part month, seems strange to have to return all of it.  I’ve asked the pension provider to clarify everything in writing.  Thank you for the replies… really helpful.  I will see what they say.