Guaranteed minimum pension
Discussion
Advice need please.
Sadly my mum passed away at the beginning of October, I was sorting out her paperwork/finances and I discovered a pension she had been getting from an employer from many years ago. I contacted them on behalf of my father to see if he was entitled to any of the pension she had. They replied saying he would be and to send in birth/marriage/death certificates, which I done and they were duly returned along with a letter stating he could have 15k as a trivial commutation lump sum or he could have £1000 per annum forever. He wanted the lump sum, which they said was taxable, and I returned the form asking for the trivial commutation
Iv since received a letter stating because of some court ruling in October they are currently unable to offer this lump sum now. Until they work out what his “top up” might be, if any. They said this is a very new procedure and it could take months, even years before it’s completed. I phoned and asked if we could take the lump sum then get the top up later if there was any and they replied no. Basically the only option they are giving me is to take it at £1000 a year or wait until the process is sorted out.
I’m finding this pretty unacceptable as
1. My dad needs the money now.
2. As far as I know the benefit is only available to my dad, so if anything happens to him between now and the process getting sorted will the pension pot be kept by the company?
3. Is there anything I can do to help him get his lump sum now?
Any help greatly appreciated.
Sadly my mum passed away at the beginning of October, I was sorting out her paperwork/finances and I discovered a pension she had been getting from an employer from many years ago. I contacted them on behalf of my father to see if he was entitled to any of the pension she had. They replied saying he would be and to send in birth/marriage/death certificates, which I done and they were duly returned along with a letter stating he could have 15k as a trivial commutation lump sum or he could have £1000 per annum forever. He wanted the lump sum, which they said was taxable, and I returned the form asking for the trivial commutation
Iv since received a letter stating because of some court ruling in October they are currently unable to offer this lump sum now. Until they work out what his “top up” might be, if any. They said this is a very new procedure and it could take months, even years before it’s completed. I phoned and asked if we could take the lump sum then get the top up later if there was any and they replied no. Basically the only option they are giving me is to take it at £1000 a year or wait until the process is sorted out.
I’m finding this pretty unacceptable as
1. My dad needs the money now.
2. As far as I know the benefit is only available to my dad, so if anything happens to him between now and the process getting sorted will the pension pot be kept by the company?
3. Is there anything I can do to help him get his lump sum now?
Any help greatly appreciated.
They are going through the process of equalising GMPs for men and women.
Historically, men and women accrued this pension at different rates - this has been deemed discriminatory, and as such, GMPs are being retrospectively recalculated. Hence the delay in allowing your father to take a lump sum.
I imagine the stand-point is that the scheme cannot extinguish a liability (pay a lump sum) if it hasn't confirmed what the liability is.
Historically, men and women accrued this pension at different rates - this has been deemed discriminatory, and as such, GMPs are being retrospectively recalculated. Hence the delay in allowing your father to take a lump sum.
I imagine the stand-point is that the scheme cannot extinguish a liability (pay a lump sum) if it hasn't confirmed what the liability is.
This arises as a result of a recent judgement in the Lloyds Pension Plan case (Google it). The judgement was somewhat of a surprise. It's left a lot of uncertainty and offered little guidance as to how to resolve equality issues. A consequence is that just about all UK pension plans that had a period of pensionable service where the member was in contracted out employment are having to decide on their reactions to the judgment and how to cope with it. It's probably for this reason that that the trustees/administrators of the plan in question are OK about paying the pension but not paying the lump sum because they will not be sure (yet) how to calculate the lump sum.
You could call The Pensions Advisory Service 0800 011 3797 and chat with them about this. Their services are free (they are a government funded non profit organisation ie a quango).
R.
You could call The Pensions Advisory Service 0800 011 3797 and chat with them about this. Their services are free (they are a government funded non profit organisation ie a quango).
R.
This arises as a result of a recent judgement in the Lloyds Pension Plan case (Google it). The judgement was somewhat of a surprise. It's left a lot of uncertainty and offered little guidance as to how to resolve equality issues. A consequence is that just about all UK pension plans that had a period of pensionable service where the member was in contracted out employment are having to decide on their reactions to the judgment and how to cope with it. It's probably for this reason that that the trustees/administrators of the plan in question are OK about paying the pension but not paying the lump sum because they will not be sure (yet) how to calculate the lump sum.
You could call The Pensions Advisory Service 0800 011 3797 and chat with them about this. Their services are free (they are a government funded non profit organisation ie a quango).
R.
You could call The Pensions Advisory Service 0800 011 3797 and chat with them about this. Their services are free (they are a government funded non profit organisation ie a quango).
R.
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