Wife, civil partnership, co-habiting partner - pension

Cobbler_tone

I am looking for those with experience in pensions post death for partners.
My DB scheme states 'wife or civil partner' although there is this statement...
"If you are not married or in a civil partnership, the Trustee can decide to pay some or all of this benefit to another Dependant who relies on you for financial support, such as a long-term partner"

In my situation (with a long term partner) she is not financially dependant on me, although she is fully on my beneficiary form. If we were married her financial situation would be irrelevant, so reads as though it is means tested.

In the days where we have HR policies for IVF, adoption, trans, same sex couples, shared paternity/maternity etc, it feels antiquated to only officially recognise marriage/civil partnership. We could get married but it is hardly the most romantic reason and not something we intend to do. I do know one couple who did so for exactly this reason.

Any views or case law? I have written to my employer of else it reads I am at the mercy of the Trustee. Probably best not to die!

Keep_pedalling

Have you also thought about the implications of IHT on your marital status?

DullGreyGuy

Cobbler_tone said:

I am looking for those with experience in pensions post death for partners.
My DB scheme states 'wife or civil partner' although there is this statement...
"If you are not married or in a civil partnership, the Trustee can decide to pay some or all of this benefit to another Dependant who relies on you for financial support, such as a long-term partner"

In my situation (with a long term partner) she is not financially dependant on me, although she is fully on my beneficiary form. If we were married her financial situation would be irrelevant, so reads as though it is means tested.

In the days where we have HR policies for IVF, adoption, trans, same sex couples, shared paternity/maternity etc, it feels antiquated to only officially recognise marriage/civil partnership. We could get married but it is hardly the most romantic reason and not something we intend to do. I do know one couple who did so for exactly this reason.

Any views or case law? I have written to my employer of else it reads I am at the mercy of the Trustee. Probably best not to die!

You're lucky the trustees will even consider a long term partner, many pension schemes its simply spouse or civil partner and no one else will be considered. There are no grounds to challenge it. 

Some pensions its spouse at date of death, others its spouse at date of retirement... have seen many complaints from people who realise their ex is going to get their pension rather than their wife for the last few years. 

There are other considerations than just pension, IHT is applied differently for anything they inherit from you if they are your spouse or not.

It doesn't have to be romantic, it can be very functional. A friend got married after being with his partner for 35 years because his police pension only pays to spouses. Didnt buy anything for the day, done at the registery office with 2 friends as witnesses and to the local after without telling anyone else. Sadly it's his wife thats now been diagnosed with a terminal illness so likely he'll outlast her. 

Silvertabby

Some form of financial interdependancy is required as proof of the relationship.  Otherwise, single people could nominate anyone as a recipient.

luckbox

We got a civil partnership done a couple years ago as long term partners we had no interest in getting married etc. It wasn’t romantic or anything, turn up and sign.

Only did it to make sure we were covered for things like this. Couldn’t even tell you our anniversary date of the top of my head.

Cobbler_tone

luckbox said:

We got a civil partnership done a couple years ago as long term partners we had no interest in getting married etc. It wasn’t romantic or anything, turn up and sign.

Only did it to make sure we were covered for things like this. Couldn’t even tell you our anniversary date of the top of my head.

You old romantic! 
I did google one DB scheme that states 'wife, civil partner or co-habiting partner' but seem to be the exception rather than the norm.

Thanks for the replies...sounds like I need to put a ring on it! 

dunstonh

In the days where we have HR policies for IVF, adoption, trans, same sex couples, shared paternity/maternity etc, it feels antiquated to only officially recognise marriage/civil partnership.

Lots of things still require marriage or civil partnership and wont include those other things.

Defined benefit schemes are funded on the basis of liabilities.  If you increase the coverage of those  who it will pay out to, then the funding level needs to increase.   So, a line has to be drawn somewhere.

Any views or case law? I have written to my employer of else it reads I am at the mercy of the Trustee. Probably best not to die!

There is no law that requires them to go beyond marriage or civil partnership.    The latter was effectively created for those that do not want to marry or cannot marry.   

DullGreyGuy

dunstonh said:
There is no law that requires them to go beyond marriage or civil partnership.    The latter was effectively created for those that do not want to marry or cannot marry.   

It was created as a stepping stone to gay marriage as when initially created only homosexual partners could use it. It has subsequently been expanded to heterosexual couples. It still has rules about people you cannot form one with like close relatives. 

What_time_is_it

Civil partnership is a great option for those who want to formally register their relationship without getting married or having a ceremony. There is a certain degree of ceremony and flowery language around the signing of the documents, and it certainly has some strange old-fashioned elements tacked onto it, but it can be done for around £100-£200 and doesn't take too long to organise. Basically, like seeing a solicitor but with some weird nods to tradition along the way!

It won't be for everyone, but well worth it in my view if you think marriage and weddings are a load of old unromantic croc.

Brie

Your OH  might not be financially dependent on you but I imagine the two of you are financially interdependent in some ways.  Like you both pay the mortgage, have your names on the deeds, pay for holidays etc.  

But yes it does seem a bit antiquated. 

I did work on a scheme years back where the member was dying relatively young of cancer or something equally difficult and was allowed to have her "spouse" named as her adult daughter.  The actuaries were not happy about it nor the scheme trustees but it was a very strong union which got it to work.

Moonwolf

Just for reference but also perhaps to inspire a conversation with the trustees of your own scheme.

The NHS allows unmarried partners, but only for those with service after April 1st 2008. You have to complete a nomination form which includes these details.  The PN1 is only for partners not married or in a civil partnership.

3. A nomination will only be accepted if, at the time of your death, the following conditions are met:
• NHS Pensions has received a correctly completed Partner Nomination form (PN1) signed by you and your partner.
• You and your partner have been living together in an exclusive long term relationship for at least two years.
• You and your partner have been free to marry or enter into a civil partnership for at least two years - please refer to 'Guide to relationships that are not allowed to marry in the UK'.
• You and your partner are financially interdependent i.e. you rely on your joint finances to support your standard of living, although you do not need to be contributing equally.
 • The conditions stated in the declaration section of the form are verified.
 • Your partner is financially dependent on you.

4. You should not rely on this information alone giving the partner entitlement to a pension. Following your death, the Scheme administrator will need to be satisfied that your relationship continued to meet the qualifying conditions for the payment of an adult dependant's pension. If an adult dependant's pension is authorised your nominated partner will also receive any lump sum on death benefit unless you have completed form DB2 in favour of one or more nominees or an organisation.

5. Evidence of financial interdependency will be required if your partner makes a claim following your death. Evidence might include:
 • confirmation that you lived in a shared household
 • shared bank accounts or investments
• a loan or mortgage in joint names
 • wills naming each other as the main beneficiary
 • confirmation of shared household expenditure
 • a joint tenancy agreement (i.e. if living in rented accommodation)
 • a mutual power of attorney
 • your partner being nominated as the main beneficiary of life assurance.