Pension company not releasing my dads pension benefits to my mum

[PoshBiscuits]

My mum and dad separated many years ago but never divorced. My dad passed away earlier this year. He was ill for a while, and whilst he was ill he wrote in an e mail to me and my mum that he wanted 50% of his pension to go to my mum. His pension was considerable.

The pension company are now refusing to pay out as they lived at different addresses. I am looking for advice on whether this is legal and how we can fight this. Any advice much appreciated.

It depends on the pension's rules. Without knowing what they say should happen when he dies, it is impossible to answer the question.

Wouldn't he have to hbe indicated to the pension company how he wanted it split. I know I have already filled something in saying I want half to go to each of my children. An email to your Mum wouldn't really hold any weight would it?

There might be a beneficiary nomination form in their records, she should ask them to check. They have a duty to make sure the money is given to the right people, and if it’s unclear they will wait until that is confirmed if there’s a will, or if he died intestate without a will, they will give it to the estate and it’s handled through probate. They are not unreasonable, they are following the law and rules of the scheme.

It won't be because they lived at different addresses. Your dad probably nominated a beneficiary, and an email won't trump that.

Who are they intending to pay it to? What are the pension scheme’s rules?

Is there a superannuation handbook / policy for this scheme? I used to work in pensions and the older schemes had a spouses and children's scheme which you couldn't opt out of. From our pov there was only widowed, single, married or divorced. Separated was still married. We didn't care if you were engaged or lived apart. The important bit was married or not married.

Depends on the actual rules of his pension. It’s very possible they won’t pay out.

You really need to ask the pension company to send you the terms and conditions. I can't imagine it's because they lived at different addresses, is it more that they didn't live as man and wife?

Condolences for your loss of your Dad.

Who is the beneficiary if it’s not your mum?

An email means nothing. It depends if he instructed the pension company and if it allows it.

he wrote in an e mail to me and my mum that he wanted 50% of his pension to go to my mum

Where was the other 50% going?

I thought you could name anybody you want as a beneficiary?

Confused… it’s his choice surely?

You can, officially with the pension company not via email to the beneficiary and their daughter.

As others have said you need to contact the pension company, depending on the scheme there may not even be anything to pay out. Even if your Father had completed an expression of wishes form with the pension company, the pension scheme trustees don’t have to follow it (although they do in the vast majority of cases). An email to you won’t cut it. You are at the mercy of the pension company really.

Our understanding was that the spouse should be the automatic beneficiary. They were still married. The pension company says because they lived at different addresses they wont pay out, so no beneficiary, conveniently enough.

But when you say ‘our understanding was’ is that just you assumed this, or you have checked the rules of the specific scheme?

Are you saying there was no payout at all? No beneficiary?

Did they have an expression of wishes form filled in for your father?

Had he nominated someone else as his beneficiary with the provider? Who was to receive the other 50%? Ask for a copy of the terms and conditions to see what happens otherwise.

I thought if there was no beneficiary the money goes to the estate? I may be wrong. Did he make a will?

It will all come down to what’s contained in the T&Cs. Have you got a copy of them so you can get a better understanding?

This seems like a spurious reason not to pay out imo… any legal bods on here?

Better make sure Expressions of Wishes forms are filled out…

im sorry for your loss OP and I hope you get somewhere with this.

As others have said it will depend on the specific rules of the scheme.

These will be based on the type of scheme it is, and whether your dad had already retired and if so how long his pension had been in payment for.

For example, if it was a defined benefit scheme there might potentially, depending on the scheme rules, be an ongoing spouse’s pension payable and/or some sort of lump sum if the pension hadn’t started being paid or had only been paid for a short time. Often the lump sum (if there is one) can be paid to whoever the member has nominated but there will usually be specific rules about who qualifies for a spouse’s pension and I can see that a scheme might have a rule that they need to be at the same address.

You will need to read the rules for your dad’s specific scheme and see what they say about who qualifies for a spouse’s pension (if this is what they’re refusing to pay) and then decide based on what the rules say whether you want to challenge them.

The Pensions Ombudsman’s office can help you although they will expect you to go through the scheme’s complaints procedure first.

The pension trustees will also consider factors like whether your mum and dad were financially dependent on each other. The fact that they lived separately at different addresses would indicate that they were not tied financially. In a separation situation they have to check if your dad had any financial dependants as they would have priority over any money due.

Unfortunately too many people assume that it will all be fine, but without a proper nomination form and/or a will, it means that the trustees will have discretion about how they distribute the money, but will have some criteria that they follow when deciding. So Financial dependants first, and your mum would have to show she was in that category.

Been involved in pensions on the periphery and yes it very much depends on the rules of the pension and what, if anything, was said on an Expression of Wish form. If you mention you assumed 50% was going to your mum, where did that belief come from - as logic dictates there’s an assumption about the other 50%.

either way, pension trustees or administrators are not obliged to tell you who received any pension payout, just that you / your mum aren’t getting a payout, as the EoW form is private between the individual (in this case your dad) and the pension fund.
you can obviously challenge any decision, but the rules for paying out aren’t absolute like intestacy / inheritance.

unfortunately it’s perfectly possible your dad’s EoW form nominated someone else, or potentially even a charity (if his scheme rules allowed it). The trustees don’t have to follow what’s in your EoW form, but would need to satisfy themselves of good reason not to. E.g. perhaps it was written long ago as a singleton and trustees are aware of children born since then.

so I agree with @typicalmner to have an Expression of Wish form lodged, but more importantly that you keep it updated - even if that’s to say your wishes from 20 years ago are still valid.