What happens to the pension

goldenicon

Andy_L said:

goldenicon said:

dunstonh said:

do they die with her?

Yes. (on the basis that it appears there is no spouse)

Yes, my father passed away over 10 years ago.

Its such a shame that she has pad into these policies and they die with her.

The contributions of those who die early subsidise those who live to 100.
If they also paid out beyond the death of the member/spouse/dependant children then, in order to balance the books, they would pay out less pension to the member instead 

Thanks for the info.

Andy_L

goldenicon said:

QrizB said:

goldenicon said:

Its such a shame that she has pad into these policies and they die with her.

She's 84 and has been receiving an income from them for 24 years? That's what pensions are for.

Yes, I know that but she has paid in more than she will get back. I know some policies allow it to be passed on to the spouse or dependent children. Both my sister and I are no longer her dependents, so I know we are not eligible for it.

Seems unlikely. As a nurse she'd have paid ~6.5% of her salary every year so, after 40 years service that's 2.6 years salary paid in. 24 years drawing the pension at 40/80ths final salary for 24 years is 12 years salary paid out + 1.5 years salary as the lump sum when she retired

ETA: Ignore this. The OP is not talking about the NHS pension but a money purchase scheme, the Royal National Pension Fund for Nurses

xylophone

Yes, I know that but she has paid in more than she will get back. I know some policies allow it to be passed on to the spouse or dependent children. 

  Please can you explain the reference to "policies"?

As above, the state pension is not a policy.

The NHS Pension Scheme is not based on a policy.

The word "policy" relates to a product sold by an insurance company.

Does your mother have such products in addition to to her state/occupational pensions?

At age 84, your mother has (presumably) been receiving her pensions for at least 24 years?

Her state pension may well also include some element relating to your father's contributions as well as her own - thus your late father's spouse would be benefiting from his contributions.

Does the NHS pension relate to her own employment/your father's/ both?

Either way, there is likely to have been some provision for a spouse after the death of the contributor.

The scheme would also have made provision for dependent offspring up to a certain age in the event of the death of the contributor.

Yes, I know that but she has paid in more than she will get back. 

Paid in NI/NHS contributions?

After 24 years of index linked pension provision?

Do you have the figures to illustrate the point?

Linton

goldenicon said:

dunstonh said:

ts such a shame that she has pad into these policies and they die with her.

The state pension and NHS pension (assuming that is what you mean by Nursing) are not policies.     She would have paid a pittance into the NHS pension during her working life compared to what she has got back.    

Its is the Royal National Pension Fund for Nurses and it is paid out by Liverpool Victoria, they pay her a monthly fee of £900 per month.

In that case the £900 would be calculated on the basis of average life expectancies. If LV continued paying until the money ran out what would happen if the money ran out whilst she was still alive?

molerat

I worked out on a £ for £ basis all my NI contributions made would be recouped in around 3.5 years of SP !

And as for my AFPS pension !!

goldenicon

I came here looking for advice, and I thank those who have given it and for their explanations. I have my answer, so I shall contribute no more in this topic.

xylophone

they pay her a monthly fee of £900 per month.

Do you mean that your mother has been receiving an annuity  of £900 a month for the last twenty four years?

hyubh

goldenicon said:

I came here looking for advice, and I thank those who have given it and for their explanations. I have my answer, so I shall contribute no more in this topic.

All that's happened so far is that people assumed 'nursing pension' meant an NHS pension, when you didn't. Now we know that, you will likely get much more appropriate responses if you stay with it. 

(This appears to be the website: https://www.lv.com/investments/about-rnpfn/faq)