Expression of wish - what is it?

workinggirl32

Hello all.  I have been taking my work based pension since March - all fine there.  Have recently received an expression of wish form to complete.  On enquiring further what this exactly is, I have not managed to get from them a reply I can understand.  All messages have simply repeated the previous reply but basically emboldened the text or underlined it.  Can anyone, please, illuminate me.  I am civil partnered.

Marcon

Try https://www.moneysavingexpert.com/savings/pension-expression-of-wishes/

Brie

What it is is a way for you to say what is to happen to your pension when you die.  So if you want your partner to have it then that's what you need to tell them.  The pension administrators may decide to pay out to someone else (children perhaps?) but that's a rare thing - basically they'll look and say "yup Girl32 wants the money to go to "Lee" who happens to be her civil partner."  And that's it.

It's no different than what you might have signed up for when you first enrolled in the pension scheme and they asked a similar question.  Assuming that was some time back and before your current attachment it might have been your parents or your brother or a previous partner. 

That they do it again now is because so many people don't ever update this sort of info and there ends up being a tussle because your ex might get money that should rightly go to your current love.

Does that help?

Misslayed

I agree with @brie - in my own case (a teacher) my first husband would have automatically received death in service benefits, but when he died I completed an ‘expression of wishes’ naming my stepson as beneficiary in the event if my demise. Now I’m retired and remarried, my husband would be the beneficiary. 

squirrelpie

Misslayed said:

I agree with @brie - in my own case (a teacher) my first husband would have automatically received death in service benefits, but when he died I completed an ‘expression of wishes’ naming my stepson as beneficiary in the event if my demise. Now I’m retired and remarried, my husband would be the beneficiary. 

Do you mean you've changed your expression of wish to nominate your husband instead of your stepson? Or just that you expect it would happen, which it might not.

Silvertabby

Note that, in the public sector for sure, an "expression of wish" form is only in respect of a one-off death benefit, if applicable.  ie, only paid before the pension is drawn, or within 5 or 10 years (different schemes, different rules) after commencement of payment 

Suvivor's benefits, in the form of an annual pension for life, are only paid to eligible spouses/civil partners/co-habiting partners.  Eligible children's pensions may be payable, but usually only until age 18, or age 23 if still in full time education.

Marcon

Brie said:

What it is is a way for you to say what is to happen to your pension when you die.  

Unless the scheme rules already dictate what happens to the pension, which is likely to be the case if this is a defined benefit pension. If so, the EOW is likely to relate to any lump sum which might become payable if the member dies before the expiry of the 'guarantee period' (typically 5 years in the private sector), in which case a lump sum may be payable, equal to the balance of any payments which would otherwise have been made during that time.

It is called an EOW because that's what it is: a preference. In the private sector, the member can't normally dictate what would happen.

Brie said:

It's no different than what you might have signed up for when you first enrolled in the pension scheme and they asked a similar question.  Assuming that was some time back and before your current attachment it might have been your parents or your brother or a previous partner. 

That they do it again now is because so many people don't ever update this sort of info and there ends up being a tussle because your ex might get money that should rightly go to your current love.

Again, you are assuming this is a defined contribution scheme. What you're describing wouldn't apply to a defined benefit scheme or an annuity -  and OP's reference to '...taking my work based pension since March...' makes it sound as if they are receiving monthly payments, not operating some form of drawdown.

workinggirl32

Marcon said:

Try https://www.moneysavingexpert.com/savings/pension-expression-of-wishes/

thanks, I did look at that but because of what I felt was conflicting information from provider, I just got bogged down in it.

workinggirl32

Later yesterday, I received this comment by email from the provider:

on predeceasing your partner, they would automatically inherit a portion (around 2/3rds) of your pension.
The expression of wish form however is there for you to be able to nominate your spouse or any other dependants that you wish to benefit from any residual pension at the time of your death.

To my mind then, the EoW seems to be something extra, what would be residual?  
I was employed at a local university so this is a final salary pension scheme. Many thanks everyone.

hyubh

workinggirl32 said:

Later yesterday, I received this comment by email from the provider:

on predeceasing your partner, they would automatically inherit a portion (around 2/3rds) of your pension.
The expression of wish form however is there for you to be able to nominate your spouse or any other dependants that you wish to benefit from any residual pension at the time of your death.

To my mind then, the EoW seems to be something extra, what would be residual?  
I was employed at a local university so this is a final salary pension scheme. Many thanks everyone.

I still wouldn't rule out Silvertaby's account of the LGPS applying (i.e. a death grant separate from survivor/child/adult dependant pension(s)), however it might be that the rules specify a contingent dependant's pension that can be split between children/adult dependants. E.g. the maximum total dependant pension is 2/3 the original member's, of which 1/2 can only be a widow/er (including civil partner) pension, but the remainder can be divvied up between qualifying child/adult dependant and/or the widow/er.

The precise details here will be part of the scheme rules. Did you get a scheme booklet on joining? Also if you name the scheme, we might be able to look the rules up.

DRS1

I am not sure if anyone has clarified what sort of pension this is but I wonder if residual pension means the balance of the member's pension after death - ie where there is a guarantee period for the pension or annuity (eg 10 years) and they want to know who gets the member's pension for the remainder of the guarantee period if the member dies before it ends.  Someone mentioned that being paid as a lump sum but I think in some cases it is just a continuation of the pension/annuity with the nominated payee.