Father deacesed but not entitled to personal pension
Ticklemouse18
Posts: 3 Newbie
My father passed suddenly at the age of 57 this year. He has 4 children ages between 16 and 36. We have recently gone through the process of dealing with his personal pension. We was notified today that only his youngest child will receive monthly payments up to the age of 23 if only he stays in education. We believe the youngest child does not want to go down the academic route and is currently doing an apprenticeship. Can we contest this decision as we do not think this is fair as his youngest did not live with him and we feel my father would of wanted this to be shared equally.:money:
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Your father should have told the pension trustees what he wanted. In the absence of that the trustees will make the decision. However you can but ask.0
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Is this a defined benefit or a defined contribution pension? If it is a defined benefit pension then it would be usual only to make payments to dependents (and the widow), which would not include 36 year old children.0
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Is this a defined benefit or a defined contribution pension?
I think newcomers here often use "personal pension" to mean not-the-state-pension. As you imply, it sounds like an occupational DB scheme.
I doubt that the trustees had a decision to make: such rules are pretty common.Free the dunston one next time too.0 -
dealing with his personal pension.
Are you sure that this is not a Defined Benefit occupational pension?0 -
Sorry for your loss.We have recently gone through the process of dealing with his personal pension. We was notified today that only his youngest child will receive monthly payments up to the age of 23 if only he stays in education. We believe the youngest child does not want to go down the academic route and is currently doing an apprenticeship. Can we contest this decision as we do not think this is fair as his youngest did not live with him and we feel my father would of wanted this to be shared equally.
This means it is not a personal pension. Personal pensions pay the fund value out to the beneficiary(ies). What you describe is a defined benefits scheme. That has no value to pay out unless you are still employed at the point of death (known as death in service or a death grant) or you are married (spouse gets 50% of the pension income for life) or you have financially dependent children (hence the age 23 rule and eduction)and we feel my father would of wanted this to be shared equally.
There is nothing to share. There was no pot of money with this type of pension. He would have paid a relatively small amount each month of employment for a range of benefits to look after him when he retired, look after his wife whilst she was alive and look after the children until they were self-dependent. It wasn't going into an investment fund like a personal pension.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
That depends on the scheme. In my DB scheme at least, deferred members who die before claiming their pension are still eligible for a lump sum payment to the nominated beneficiaries.0
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deferred members
There is no indication that the OP's father was a deferred member - he might have died in service.0 -
greatkingrat wrote: »That depends on the scheme. In my DB scheme at least, deferred members who die before claiming their pension are still eligible for a lump sum payment to the nominated beneficiaries.
Schemes will vary. Some will have payments if you die before retirement based on years of service. Some will pay a multiple of pensionable income irrespective of whether you are active or deferred. Some will have a time limit or maximum age. Some will have nothing. The terms of the payment may specify that a spouse or child under 23 is required to get it. Some will not.
I must admit to working on the basis that with there being no mention of a lump sum in the first post, that there isnt one being paid. If there was, there would be no need for the post.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi thanks for comments this is a private pension0
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there's no such product as a 'private pension' all that means is that he organised it himself, not through an employer.
if he used a pension pot to buy an annuity then you're bound by the terms of the annuity.
if it was a SIPP that he was drawing money from then the estate would have received the residue to be distributed to the beneficiaries as set out in his will or by the laws of intestate.
given you say the youngest dependent will receive a regular payment until they finish their eduction then it wasn't just a pot of money - he traded the pot for a guaranteed income which after his death gave a guaranteed amount to his dependents.
you are an independent adult, not a dependent, so you don't get it.One of the hardest of all life lessons is this:
Just because I feel bad doesn’t necessarily mean someone else is doing something wrong.
Just because I feel good doesn’t necessarily mean what I am doing is right.0
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