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.

What type of pension is it? If it’s a dc scheme the trustees will need to pay out the funds accrued but to someone at their discretion. If a db scheme, the rules will govern if there is any death payment due to anyone.

I think the pension is already in payment @MsPincher so it's completely possible that the trustees don't have to pay anything out. This is why the OP needs to show that her DM was dependent on her DF to allow the trustees to consider that they were still "a couple" despite living separately. Had they divorced, OP's DM would likely have already received a settlement from the pension scheme as part of the divorce. I would also use that as an point to the trustees.

If it was a DC scheme (I think you may have muddled them up in your post) and it was in payment then the DF will likely have purchased an annuity and the payment rules will be determined by what he bought - e.g. 5/10 year guarantee, spousal payment of 25/50% etc. The rules will be different if he put it into a drawdown facility where it's probable that any remaining benefits will form part of his estate.

@BinBandit - I didn’t mix them up but was assuming that any dc scheme was either not in payment or in a drawdown vehicle (it’s less common to buy annuities in the past few years due to low rates).

But yes op has confirmed it’s a db scheme in payment. Whether or not anything is payable will depend on the wording of the scheme documents so we can’t comment. But yes, nothing may be due as you say.

Also @BinBandit - dc pensions don’t usually form part of your estate even if in a drawdown vehicle. They usually pass separately at the discretion of the trustees and have different tax rules.

I don't think trustees are involved/relevant for a DC pension already in payment are they? The owner will have made decision to either purchase an annuity or a drawdown or other suitable investment e.g SIPP so the way the benefits would be paid would differ depending on loads of factors. Unless I am totally missing something

I do think in this case it is probably a DB pension we are talking about so I think most of us all agree that contacting the trustees with details of her DMs situation is the best course of action.

A dc pension generally goes outside your estate into a discretionary trust whether it’s in drawdown or not (but annuity is different). This means it is not usually subject to iht as it passes outside your estate into a discretionary trust like life insurance. -So yes, there will be trustees. Suggest you look it on a reliable site.

op has already confirmed it is a db scheme, yes.

Ah yes, that makes sense