Company Pension for Partner

chutney51

Hi,

My other half passed away not long ago. She worked for a well-known British high street company for 35 years and had a very good pension with them. We both took early retirement.

My own pension is a SIPP and ISA, and I took the 25% tax free lump sum and also cashed in some of the ISA when needed for large expenditure (new car, work on the house, etc). Subsequently my pension is less than hers.

We were together 28 years and she made me her pension beneficiary, starting in about 1999. Every few years she was asked to update the name and it was always me. Now she has passed, I am finding out the small print of the pension. It will automatically pay 2/3 of the pension to the other person IF they were married, but we never were. The pension has stopped and they are sending me a pack. I gather I have to apply to the Pension Trustees.

On the pension website when she named me it then asked "your relationship". On the drop down menu she always selected partner.

Does anybody have any experience of this? Is it likely to be approved?

Thanks for any advice on this.

p00hsticks

I'm sorry for your loss.

The need for a nomination was more likely to be for a Death In Service benefit rather than the pension.

Nowadays some DB pension schemes are amending their rules to take into account live in partners as well as spouses but I'm not sure that the trustees have much discretion to retrospectively amend the rules.

The inheritance of DB pensions is the main reason I married my long term partner just prior to us retiring - not very romantic but financially advantageous.

DRS1

What is it you are hoping to get? The 2/3rds pension? Do the scheme rules limit that to spouses or civil partners or do they extend it to cover "alternate financial dependants"?

Were the nomination forms she signed for lump sum death benefits? Or did they talk about pensions as well?

Were you financially dependant on her?

JoeCrystal

Depending exactly what the schemes rules say really. If it insist that you need to be married then you need to be married. Otherwise, Trustees may restricted by the rules and there may be no leeway.

I mean, marriage is a VERY good reason to ensure that one get a spousal pension. Certainly, it was the cases in the past.

chutney51

I thought the form was for the pension, and I was expecting to get 2/3rds.

Yes I have become dependant on it as we cashed in part of my pension to pay for extras.

My pension was roughly 30% of the household income prior to her passing.

She had the opportunity to take a tax-free lump sum and a reduced monthly pension. She turned it down.

I cashed in part of my ISA to put towards our house and car, etc.

Marcon

The pension has stopped and they are sending me a pack. I gather I have to apply to the Pension Trustees.

Without seeing the rules, it's impossible to be certain. From what you've said, it sounds as if the trustees may have discretion to pay a pension to an 'unmarried partner', provided the person claiming meets whatever criteria the rules of the scheme stipulate. Typically this would be that you have been living in a relationship akin to marriage for at least 'x' years and can demonstrate mutual financial dependence.

DRS1

I assume the pack has not arrived yet. You may find some information in any member's booklet she may have had or perhaps online if you can access her online pension information. That should at least tell you if the "spouse's pension" is actually limited to spouses or if others may get a look in.

The fact they are sending you a "pack" might be a hopeful sign. It may be that it sets out what sort of evidence they would require of dependency.

If you named the scheme someone on here may know what it says but if the rules were changed (eg to cover civil partners or "alternate financial dependants") there is no knowing whether the change will actually apply in this case as it may only be for membership after a certain date.

Ayr_Rage

If you name the company then someone may have access to or find the scheme rules.

My scheme says this.

Dependant’s pension

If you do not leave a spouse, a pension may be payable, at the Trustee’s discretion,to an individual who was dependent upon you, for all or part of the necessaries of life, at the time of your death.

dunstonh

It sounds like this a defined benefit scheme. These do not have a pot of money for someone to inherit.

Instead, they have a list of defined benefits in a range of scenarios and with set criteria.

Each scheme is different (although often with similarities) but in the case of death benefits to an unmarried parter, the scheme details would be vital as we cannot assume. Can you name the scheme please?

DRS1

"She had the opportunity to take a tax-free lump sum and a reduced monthly pension. She turned it down."

Does this mean she was not actually receiving a pension at the date of her death? You said she took early retirement but did she put off taking the pension until a later date and then die before the later date?

chutney51

Its Marks and Spencer