Pensions paid only to Legal Spouse

Gary1984

Marcon said:

Gary1984 said:

Beddie said:

It's yet another area where single people with no dependents are punished financially. We should be able to forego all the spouses pension etc. and get a higher pension while alive. It's a set of dinosaur rules from when women didn't work and/or build up a pension once they had kids.

But many people start paying into a pension when they're young and more likely to be single. How can they possibly know if they'll be married in 50 year's time. Much simpler and fairer to offer survivor benefits to everyone.

So who's going to pay the extra cost of doing this?

Gary1984 said:

The whole point of a workplace DB pension is to share the risk with others. The risk of having dependents when older, the risk of living a long time, the risk of ill health and so on. What you're arguing for is much closer to a DC scheme where everyone gets their own pot and takes the benefits tailored to them. It also gives (probably) men the option to buy a single life annuity completely screwing over their wives. Give me DB any day!

Risk sharing, yes - but members tend to be less keen on the idea of sharing 'extra' costs of the sort you are suggesting. Why should employers foot the bill to provide benefits which were never in the rules of the scheme? Since 1988 members have always been able to opt out...

Sorry, I meant to everyone with an eligible dependent and not to give people the option to opt out. I agree it should only be to those as set out in the scheme rules. 

Hoenir

eastcorkram said:

Does Expression of wish count for anything? 
Say you're married for a few years, then split up, separated but not divorced. Then live with someone else for 20 years, and the someone else is named in the EoW. Is that just ignored?

In the absence of a financial consent order then it's a totally different situation with regards to all assets. 

Lorian

Don't overlook being married (or civil partnered) can also be tax efficient and help with IHT planning.

Keep_pedalling

Lorian said:

Don't overlook being married (or civil partnered) can also be tax efficient and help with IHT planning.

For any long term couple where at least one of them has assets over £325k marriage / CP should be a part of IHT planning. Leaving a partner in a financial mess because they have to sell the family home to pay IHT on the first death is totally irresponsible, and is often compounded because of dying intestate. 

Even where there is no chance of an IHT liability it is imperative that unmarried couples make wills and put LPAs in place if they don’t want to leave a financial mess if the die or lose mental capacity through accident or illness.  

Silvertabby

Hoenir said:

eastcorkram said:

Does Expression of wish count for anything? 
Say you're married for a few years, then split up, separated but not divorced. Then live with someone else for 20 years, and the someone else is named in the EoW. Is that just ignored?

In the absence of a financial consent order then it's a totally different situation with regards to all assets. 

LGPS case:

Still married, but had been living with new partner for over 10 years, and had a couple of children together.  Expression of Wish form completed, nominating partner and children.

But in the case of the LGPS - and many other DB schemes - the EoW form only applies to a one-off  lump sum death grant, if applicable, and not the spouse's pension, which can only paid to a legally married spouse or eligible partner*.

Chap sadly died while still in service.  Partner finally received the death grant, children received pensions - but the spouse's pension for life went to the estranged wife.  The wife kicked off about the lump sum as well, hence the delay in payment, but the Trustees used their discretion to deny her claim and pay in accordance with the EoW.  But the Trustees couldn't make a discretionary pension award - that could only be paid in accordance with the scheme rules.

*Different schemes have different rules.  The LGPS started to pay survivor's pensions to co-habiting partners back in 2008 - but subject to very strict rules. Primarily, must have been living together as husband and wife for a least 2 years, and both parties must be free to marry.

MEM62

eastcorkram said:

Does Expression of wish count for anything? 
Say you're married for a few years, then split up, separated but not divorced. Then live with someone else for 20 years, and the someone else is named in the EoW. Is that just ignored?

That would be up to the trustees.  They can ignore an EoW but they need good reason for doing so.  They cannot just make decisions based on a whim.  

GrubbyGirl_2

I have a great NHS pension which will die with me as I'm not married or cohabiting.  The NHS pension does allow for you to nominate a cohabiting partner but you must be able to prove that you have done so for at least 2 years.  Shame other pensions don't allow it