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NHS survivor pension mistake?
rnj
Posts: 66 Forumite
Hello,
I've started receiving an NHS survivor pension but it seems very high, it's taken a long time to start getting paid but even if I work it out pro-rata (divide it by months since death) it seems so high. Unfortunately the "payslip" I got sent in the post does not provide much detail, just says initial pension and a value and I've had almost no communication from the NHS. It cannot be a lump sum as they have taxed it at basic rate.
How likely is it they have made a mistake? Does anyone have experience of pension errors? I cannot think what type of mistake they have made to increase the value.
On another note this pension (at this value or the value I anticipated) is likely to put me slightly into higher rate tax from next year, should I therefore pay some into my own private pension to reduce my tax bill?
I've started receiving an NHS survivor pension but it seems very high, it's taken a long time to start getting paid but even if I work it out pro-rata (divide it by months since death) it seems so high. Unfortunately the "payslip" I got sent in the post does not provide much detail, just says initial pension and a value and I've had almost no communication from the NHS. It cannot be a lump sum as they have taxed it at basic rate.
How likely is it they have made a mistake? Does anyone have experience of pension errors? I cannot think what type of mistake they have made to increase the value.
On another note this pension (at this value or the value I anticipated) is likely to put me slightly into higher rate tax from next year, should I therefore pay some into my own private pension to reduce my tax bill?
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Comments
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On another note this pension (at this value or the value I anticipated) is likely to put me slightly into higher rate tax from next year, should I therefore pay some into my own private pension to reduce my tax bill?
I would. no point in paying high rate tax if you can afford to not do soI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Hello,
I've started receiving an NHS survivor pension but it seems very high, it's taken a long time to start getting paid but even if I work it out pro-rata (divide it by months since death) it seems so high. Unfortunately the "payslip" I got sent in the post does not provide much detail, just says initial pension and a value and I've had almost no communication from the NHS. It cannot be a lump sum as they have taxed it at basic rate.
How likely is it they have made a mistake? Does anyone have experience of pension errors? I cannot think what type of mistake they have made to increase the value.
On another note this pension (at this value or the value I anticipated) is likely to put me slightly into higher rate tax from next year, should I therefore pay some into my own private pension to reduce my tax bill?
Does it seem high because it's more than 50% of your spouses pension? If so, could it be that your spouse's pension was reduced due to early payment reduction/commutation, neither of which affect the survivor's pension.
Or, depending on when your partner left the NHS, your first 3 or 6 months pension payments could be paid at the rate your partner received, and not the survivor's 50%.
Another possible reason is that your partner died in service, meaning that their (or rather your) pension benefits have been enhanced.
That said, I would write to NHS pensions to ask for confirmation that your pension is correct, as it is more than you expected.
Yes, mistakes do happen and yes, once they come to light then the over payment is usually recovered.0 -
I agree with Silvertabby points, there are assorted ways in which early (or indded all) payments are higher than 50%.
If you phone NHS pensions (there is a section for those in receipt of pensions) they should be able to explain it to you.
0300 330 13460 -
I agree with Silvertabby and Flugelhorn comments, it is likely that the pension is being paid for a time at that which your partner would have got or one of the scenarios such as there was a pension sharing order- which affects the individuals pension but not the survivors pension.
Asking the Pensions Agency for clarification does seem the best course of action. If it was a case of death in service then there should be a TFLS as it is likely the pension was largely saved under the 1995 and possibly 2008 scheme rules.CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!0 -
I believe I have worked out what it is, I was misreading the short term pension as being based on "cumulative pension built up to date" whereas it was actually based on pensionable earnings at death which would make it higher and my revised rough sums come close to what I received.0
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