Inherited Pension less than inherited contracted out deductions... newly widowed & worse off

ellisk

Hi, 
Any advice or recommendations of who to speak to gratefully received.

My mother was just widowed from her second marriage.  She inherited 1 of 4 of his pensions amounting to £60 a calendar month.  But she inherited his contracted-out deductions amounting to £19 a week.  So she's now living alone with £720 extra pension per year, but with £988 deducted from her state pension.

It seems really unfair and very upsetting to her in her bereavement...  She's made countless calls and is getting nowhere.  The pension people just say they'll get it looked into or say that's absolutely correct.

thanks in advance 

ellis

Dazed_and_C0nfused

Ignoring any non standard payments whilst things changed what was her weekly or 4 weekly State Pension amount before she was widowed and what is it after?

ellisk

Dazed_and_C0nfused said:

Ignoring any non standard payments whilst things changed what was her weekly or 4 weekly State Pension amount before she was widowed and what is it after?

hi, (many thanks)

she told me ... 4th april £254.82   
11 april - 16 may 263.63 
now  245.59

thank you

xylophone

See below - any help?


https://www.thisismoney.co.uk/money/pensions/article-4739846/Why-state-pension-reduced-husband-died.html

https://forums.moneysavingexpert.com/discussion/comment/79022643/#Comment_79022643

https://forums.moneysavingexpert.com/discussion/comment/79262995/#Comment_79262995

https://forums.moneysavingexpert.com/discussion/comment/79281937/#Comment_79281937

ellisk

xylophone said:

See below - any help?

Thank you so much for these... it seems that the pension provider has an obligation to ensure the deductions are not great than the benefits... (do you know where this is legally stated, or is it part of the 'contract'?)  I shall be returning to the provider now... perhaps threatening with the ombudsman...  

thanks again

xylophone

it seems that the pension provider has an obligation to ensure the deductions are not great than the benefits...

You are referring to the widow's pension provided by your late stepfather's pension scheme?

https://www.gov.uk/guidance/provide-a-pension-for-your-scheme-member

If a married man dies with an entitlement to a GMP, his widow is entitled to half the GMP accrued by, or in payment to him, at the date of his death providing she qualifies for one of the following state benefits:

• Bereavement Allowance
• Widowed Parent’s Allowance
• Retirement Pension, based on her late husband’s National Insurance contributions (NICs)
• Retirement Pension, based on her own NICs but with underlying title to a Retirement Pension based on her late husband’s NICs
• Bereavement Support Payment

As your stepfather had a GMP and your mother qualified for one of the benefits specified above, the scheme must pay her the requisite amount and it appears that this is happening?

 Your late stepfather had a GMP as a result of being a member of a  pension scheme that was contracted out of Additional State Pension pre 6 April 1997.

 When he  claimed his state pension, the DWP calculated the ASP he would have received had he been contracted in with what he actually received as a result of being contracted out and deducted the latter from the former.

This was the Contracted Out Deduction shown on his state pension statements.

What was left after the deduction (if anything) was received by him with his state pension.

Your mother is entitled to inherit a proportion of any pre 97 Additional State Pension (the exact amount depends on his date of birth) but she also inherits  half of his Contracted Out Deduction.

Look at this (which immediately precedes the second link in my previous post).

https://forums.moneysavingexpert.com/discussion/6338773/inheritance-of-additional-state-pension

Do you have access to your late stepfather's SP statement and your mother's pre and post bereavement state pension statements?

Marcon

ellisk said:

xylophone said:

See below - any help?

Thank you so much for these... it seems that the pension provider has an obligation to ensure the deductions are not great than the benefits... (do you know where this is legally stated, or is it part of the 'contract'?)  I shall be returning to the provider now... perhaps threatening with the ombudsman...  

thanks again

You don't have to plough through this on your own (nor does your bereaved mother). Gather the paperwork together and then ring MoneyHelper.

They will be able to help and talk you through it - free (just the cost of the phone call) and impartial. Alternatively, you can contact them online.

Contact info: https://www.moneyhelper.org.uk/en/pensions-and-retirement

ellisk

Do you have access to your late stepfather's SP statement and your mother's pre and post bereavement state pension statements?

not to hand now.. but i'm hoping I'm best talking to moneyhelper at this stage... thank you xylophone

ellisk

Marcon said:

You don't have to plough through this on your own (nor does your bereaved mother). Gather the paperwork together and then ring MoneyHelper.

They will be able to help and talk you through it - free (just the cost of the phone call) and impartial. Alternatively, you can contact them online.

Thank you for this link.  appreciated

Ellis

xylophone

not to hand now.. but i'm hoping I'm best talking to moneyhelper at this stage... thank you xylophone

You could find it helpful to have them at hand when you speak to MH.

Marcon

Just come across this article which might explain things (and sadly confirm they are correct): https://www.telegraph.co.uk/pensions-retirement/news/husband-died-cut-state-pension-10001/