What happens to my mum when dad passes (state and private pension)

UKSBD

Thanks both

calcotti

elsien said:

There is also bereavement support allowance,

Bereavement Support Allowance was replaced by Bereavement Support Payment in 2017. BSP is not payable to those of pension age.

xylophone

When was your father born?

And your mother?

You need to find your father's statement of increase in benefits which he would have received a couple of months ago.

Can you post it up (redacted to remove  name/NI number/ address).

State Pension is not paid monthly but four weekly.

it is perfectly possible for somebody on the old state pension to be receiving more than double the current Basic State Pension (currently £156.20 a week), particularly a man who had a full working life during which he accrued some Graduated Pension and was contracted in to  State Earnings Related Pension and State Second Pension for much or all of it.

With regard to your mother's position, if she is currently receiving £500 every four weeks, she is receiving more than what she would receive if she were relying solely on having claimed on your father's contributions but less than a full Basic State Pension.

This indicates that she had accrued some state pension in her own right but at SPA (60 in her case), did not have enough qualifying years for a full Basic.

With regard to her position should she be widowed, see Annex A page 21 onwards here

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

The example on P26 is closest to your mother's situation.

Following this pattern, the probability is that she would have her Basic SP made up to a full Basic, would inherit half of his Grad and a percentage of his SERPS/S2P, depending on his date of birth etc.

See table here

https://www.gov.uk/additional-state-pension/inheriting

You mention that your father had a small private pension - can you indicate if this was from an occupational pension and if so whether it was from a defined benefit scheme of which he was a member at any point between 1978 and 1997?

If so, he would have been contracted out during that period and therefore a COD will show on his state pension letter to which I referred above and could cause an adjustment in respect of your mother's inheritance of his additional state pension - see Annex A.

If he was a member of such a scheme, the likelihood is that your mother would be entitled to half this pension for the rest of her life but this would depend on the scheme.

If derived from an annuity/private pension, your mother may or may not be entitled to some inheritance, depending on the exact terms of the policy etc.

In the event of your father's death, you will contact the DWP who will recalculate your mother's SP and also the Administrator of the private pension so as to determine what (if any) rights your mother may have.

UKSBD

Thank you for the detailed reply.

Edit to add - Father born in Jan 1937, Mother Jan 1938

To be honest I don't really want to be going asking my mum for all the paperwork at this stage as it might upset her.

All I really know is from what was on their bank statements

Father receiving about £1250 in state pension, £250 personal pension, £250 Attendance Allowance (this stopped when went in to hospital/home)

Mother receiving about £550 state pension

He was always finiky about money and would have done a lot to increase his state pension.

Mum appear to think she will get all his private pension, and knowing my dad, this is the sort he would have taken out I'm (not 100% though)

All I really want to know at this stage is whether my mum will only receive her existing £550, amount my father received, or something in between.

With regards state pension - When the worst happens and she lets the DWP know, do they do all the calculations and her not have to do anything but just leave to them to let her know what she will receive?

Regarding Private Pension - Is that the same, just let them know and leave to them?

My concern is you always hear about pensioners not receiving what they are entitled to unles they actually put claims in for it, am I worrying too much and everything will be automatically sorted?

sheramber

If you use the 'Tell Us Once' service then it will be dealt with when the death is updated on the DWP system.

It will not happen immediately as it will be passed to the relevant department to calculate.

xylophone

He was always finiky about money and would have done a lot to increase his state pension.

He wouldn't really have had a great deal of control of this.

Let's assume that he started work in  (say) 1955 - he would have been paying  his NI at the appropriate rate for the basic state pension.

Between 1961 and 1975 he would have been accruing Grad.

Between 1978 and 2002 (when he reached SPA), assuming that he was "contracted in" (and judging by his SP he was contracted in for most if not all of his working life), he would have been accruing SERPS.

https://techzone.abrdn.com/public/pensions/Tech-guide-old-state-pension#anchor_12

With regard to the private pension, you have not indicated where this is from (occupational DB/DC, personal pension/annuity etc).

As in my previous, in the event of your father's death, you will contact DWP and the administrator of your father's private pension.

DWP will recalculate your mother's pension and the administrator of the private pension will contact your mother and advise her of  any pension she is due to receive.

calcotti

UKSBD said:..

All I really want to know at this stage is whether my mum will only receive her existing £550, amount my father received, or something in between.
…
My concern is you always hear about pensioners not receiving what they are entitled to unles they actually put claims in for it, am I worrying too much and everything will be automatically sorted?

When her circumstances are known it be that there is no entitlement but it will be sensible for her to apply for Pension Credit and Council Tax Reduction when the time comes.

UKSBD

calcotti said:

UKSBD said:..

All I really want to know at this stage is whether my mum will only receive her existing £550, amount my father received, or something in between.
…
My concern is you always hear about pensioners not receiving what they are entitled to unles they actually put claims in for it, am I worrying too much and everything will be automatically sorted?

When her circumstances are known it be that there is no entitlement but it will be sensible for her to apply for Pension Credit and Council Tax Reduction when the time comes.

Thanks, I looked in to that a little but think they have too much in savings to be eligible for Pension Credits.

Will look in to it more if the worst happens though and if she is left on just £550 a month.

The more I have been reading though, the more I think she will receive extra based on my dads NI contribution history.

calcotti

UKSBD said:

calcotti said:

UKSBD said:..

All I really want to know at this stage is whether my mum will only receive her existing £550, amount my father received, or something in between.
…
My concern is you always hear about pensioners not receiving what they are entitled to unles they actually put claims in for it, am I worrying too much and everything will be automatically sorted?

When her circumstances are known it be that there is no entitlement but it will be sensible for her to apply for Pension Credit and Council Tax Reduction when the time comes.

Thanks, I looked in to that a little but think they have too much in savings to be eligible for Pension Credits.

There is no maximum savings limit for Pension Credit. The Pension Credit would be reduced by £1/week for every £500, or part thereof, over £10,000. If any guarantee Pension Credit were payable she would be entitled to have her Council Tax covered by Council Tax Reduction.

UKSBD

calcotti said:

UKSBD said:

calcotti said:

UKSBD said:..

All I really want to know at this stage is whether my mum will only receive her existing £550, amount my father received, or something in between.
…
My concern is you always hear about pensioners not receiving what they are entitled to unles they actually put claims in for it, am I worrying too much and everything will be automatically sorted?

When her circumstances are known it be that there is no entitlement but it will be sensible for her to apply for Pension Credit and Council Tax Reduction when the time comes.

Thanks, I looked in to that a little but think they have too much in savings to be eligible for Pension Credits.

There is no maximum savings limit for Pension Credit. The Pension Credit would be reduced by £1/week for every £500, or part thereof, over £10,000. If any guarantee Pension Credit were payable she would be entitled to have her Council Tax covered by Council Tax Reduction.

Yes, I had already read that.

The savings they have would reduce the Pension Credit to £zero

They were expecting his savings to go on paying for a care home, but if he does come out of hospital he will be on NHS Continuing Healthcare