Pension lump sum?

Albermarle

AttractingMoreMoney said:

xylophone said:

The third (an assa abloy pension) 

she was made redundant from the company associated with this pension back in 2007. She worked for them for over 20 years so I see it as a "dormant" pension.

Hello, thank you for replying. I don't have any paperwork on rules 

https://forums.moneysavingexpert.com/discussion/6397133/assa-abloy-pension-chubb-security-pension

Do you mean that your mother had a deferred DB pension (possibly from Chubb)?

Hi there, yes it was originally a Chubb Pension. When I contacted them about it they referred me to Assa Abloy/Mercer. It mentions lump sums and pots in the paperwork, but I'm not certain I'll qualify to receive it.

Be aware that some pension administrators only seem to ever work at a snails pace, Mercer being one of them.
So probably best not to rely on an answer coming soon.

AttractingMoreMoney

Albermarle said:

AttractingMoreMoney said:

xylophone said:

The third (an assa abloy pension) 

she was made redundant from the company associated with this pension back in 2007. She worked for them for over 20 years so I see it as a "dormant" pension.

Hello, thank you for replying. I don't have any paperwork on rules 

https://forums.moneysavingexpert.com/discussion/6397133/assa-abloy-pension-chubb-security-pension

Do you mean that your mother had a deferred DB pension (possibly from Chubb)?

Hi there, yes it was originally a Chubb Pension. When I contacted them about it they referred me to Assa Abloy/Mercer. It mentions lump sums and pots in the paperwork, but I'm not certain I'll qualify to receive it.

Be aware that some pension administrators only seem to ever work at a snails pace, Mercer being one of them.
So probably best not to rely on an answer coming soon.

Yes I read some reviews about them on trustpilot and wasn't filled with confidence 🤭

xylophone

The pension from Chubb might have been DB/DC/or hybrid (a combination of both).

Either way, Mercer should be able to provide you with the scheme rules applicable to your mother's case.

One assumes that the rules provided for the situation where a member with a deferred pension died before the pension came into payment.

This was likely to specify that there would be provision for a widow/ dependent children by way of a monthly (or otherwise) pension and/or a death benefit lump sum.

As your mother was invited to complete an Expression of Wishes, it seems likely that she could nominate (for the Trustees' consideration) a beneficiary of any lump sum.

As it would appear that you were nominated by your mother and that she did not leave a widower/close family etc, you would appear the obvious beneficiary if there is such a lump sum?

xylophone

https://www.pensions-ombudsman.org.uk/decision/2004/m00489/chubb-security-pension-fund-m00489

might be of interest.

AttractingMoreMoney

xylophone said:

https://www.pensions-ombudsman.org.uk/decision/2004/m00489/chubb-security-pension-fund-m00489

might be of interest.

That was an interesting read, thank you.

AttractingMoreMoney

Just wanted to update in this thread. I have indeed been sent a letter confirming I'll receive a lump sum from my mum's pension, not much, but I am now potentially faced with using some of it to pay a debt on her behalf to Phillips and Cohen. I'll enquire about this in a new thread as I have a question.

Thank you everyone.

Grumpy_chap

AttractingMoreMoney said:

Just wanted to update in this thread. I have indeed been sent a letter confirming I'll receive a lump sum from my mum's pension, not much, but I am now potentially faced with using some of it to pay a debt on her behalf to Phillips and Cohen. I'll enquire about this in a new thread as I have a question.

Thank you everyone.

Sorry for your loss.

The devil is always in the detail and I am not an expert, but mention a couple of things as they are worth investigating further to be sure of the position.

Pensions are often outside of the deceased estate.

Debts should be met from the deceased estate prior to distribution to any beneficiaries.

If the pension was outside of the estate and the estate inadequate to satisfy the debt, it may not be required to pay the debt from the pension lump sum.

You wrote in the OP that you lived in the same house as your Mum, but I did not see whether your Mum owned that house, or rented, or you owned the house.  If your Mum owned the house, then the house is part of her estate and the estate is most likely large enough to satisfy the debt, so the comments above become irrelevant.

Sorry I can't be sure of all the rules here but, hopefully, there will be someone else who can give more complete comment.

AttractingMoreMoney

Grumpy_chap said:

AttractingMoreMoney said:

Just wanted to update in this thread. I have indeed been sent a letter confirming I'll receive a lump sum from my mum's pension, not much, but I am now potentially faced with using some of it to pay a debt on her behalf to Phillips and Cohen. I'll enquire about this in a new thread as I have a question.

Thank you everyone.

Sorry for your loss.

The devil is always in the detail and I am not an expert, but mention a couple of things as they are worth investigating further to be sure of the position.

Pensions are often outside of the deceased estate.

Debts should be met from the deceased estate prior to distribution to any beneficiaries.

If the pension was outside of the estate and the estate inadequate to satisfy the debt, it may not be required to pay the debt from the pension lump sum.

You wrote in the OP that you lived in the same house as your Mum, but I did not see whether your Mum owned that house, or rented, or you owned the house.  If your Mum owned the house, then the house is part of her estate and the estate is most likely large enough to satisfy the debt, so the comments above become irrelevant.

Sorry I can't be sure of all the rules here but, hopefully, there will be someone else who can give more complete comment.

Thank you. I started a new thread under the probate forum. It seems unless I'm willing to pay the debt out of the lump sum (I don't have enough of my own savings to cover it) I'd have to sell the house. My mum owned it and we both lived in it. I can't really sell it because it's my home and I'd effectively be homeless.