Late husbands COD payment from Pension Provider

gmje

I have a letter from HMRC advising of  small weekly payments due to me from my late husbands private pensions. One was a company pension and I am receieving the 50% widow benefit which I believe includes  the COD amount. The 2nd pension was only guaranteed for 5 years and they stopped paying it some time ago. - Needless to say we never got back all that was paid in. However my question is.....now that I have arrived at state pension age should this 2nd company be paying me the  contracted out  payments.?  Is this also known as GMP or am I getting confused with all the jargon?
My husband paid into this 2nd pension between 1987 - 1999 - he died aged 64 so never got any state pension. I have received a very small amount of inherited additional pension on the back of his state pension which I would also like to check if any specialists can give me guidance on how to do this. thanks

xylophone

Have you only just started receiving the state pension?

When did your husband die?

Is this thread of help?

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

xylophone

Are you able to paste up your own state pension letter (which details your entitlements) and the letter from HMRC, concealing all personal details (name/address/NINO etc)?

The 2nd pension was only guaranteed for 5 years and they stopped paying it some time ago.
My husband paid into this 2nd pension between 1987 - 1999 - 

Are you saying that before your husband died, he was receiving an income from this pension but died within the guarantee period?

Did you receive a lump sum as here?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems/pensions-after-death#:~:text=If your pension is being,end of the guarantee period.

Pension protection lump sum

If your pension is being paid, there’s often a guarantee period (usually 5-10 years).

If you die within the guarantee period, a lump sum might be paid to your beneficiaries.

This lump sum is usually the value of the pension payments which are due to be paid between your death and the end of the guarantee period.

This is paid tax-free if you die before the age of 75. Otherwise, it’s taxed as earnings on the person(s) receiving it.

There might be Inheritance Tax too, as these payments form part of your estate.  

gmje

xylophone - thanks for the info. my husband died during the guaranteed period. looking at what you have posted I think they will have to pay me the COD amount. this was never mentioned when they wrote to say the payments were ending. I seriously believe pension companies are thieves and or incompetent . will call them and report back.

Marcon

gmje said:

xylophone - thanks for the info. my husband died during the guaranteed period. looking at what you have posted I think they will have to pay me the COD amount. this was never mentioned when they wrote to say the payments were ending. I seriously believe pension companies are thieves and or incompetent . will call them and report back.

Given you've only had experience with a couple of providers, that seems a rather broad generalisation!

Most problems are down to lack of understanding/poor communication rather than anything more sinister.

gmje

Marcon I have 2 pensions that have been incorrectly calculated, one final salary,which was a simple 12/60ths and another, same organisation with 5 mathematical errors, the 5th occured when they were making a subsequent payment and missed out 30 days arrears. sorry if I sound glib but my opinion is they're rubbish

jamesd

A five year guarantee typically came with buying an annuity, though it's optional and could be nil or ten years in the past. Same for ending without spousal payments continuing, around 90% of annuities bought were of that single life type.

If it was an annuity purchase and GMP doesn't apply because it never does to individual annuities.

No harm in asking but this looks like what you're most likely to be told.

The questions about the state pension will be in part to determine if he died on 5 April 2016 or earlier and your marriage to him also started then, in which case you can inherit part of his state pension. Can also check your own record to see if your own personal entitlement can be improved.

gmje

Thanks for replying Jamesd. my husband died 2013. He got a a contracted out plan with Allied Dunbar ,Zuric subsequently took over. when he came to take the pension prior to his death they only offered 2  choicesof annuity with Prudential .The sum of £23k said protected rights ........my understanding of P Rights is that it should be the equivalent of what would have been paid if it had stayed in the state scheme. As his widow within the state scheme I would get approx £30 p week for life but I get nothing from the annuity because its 5 year gteed period expired. Surely this cant be correct?

JoeCrystal

Can be if it taken out as only single life annuity. Otherwise there is no provision to pay to the spouse.

xylophone

my husband died 2013.

He got a a contracted out plan with Allied Dunbar ,Zuric subsequently took over. when he came to take the pension prior to his death they only offered 2  choicesof annuity with Prudential .The sum of £23k said protected rights ....

The rules and restrictions relating to protected rights ended on 6 April 2012.

Did your husband purchase the annuity after this point?

Or he purchased it earlier, died within the guarantee period and you benefited as indicated in my previous?

Either way, it would you appear that you are not entitled to any further benefits from this pension.

Please can you clarify when you yourself reached SPA?

Was it before or after 6/4/16?

jamesd

Protected rights used to require that a spouse would get payments after death so you getting nothing implies that he bought after the protected rights restrictions ended. Good to check and be sure, though.

From his date of death you should have some of his additional (earnings-related) state pension added to yours. Might not be much because he could have been contracted out a lot.