Nhs Pension For Widow

[bond]

My father worked for the NHS for a long number of years and has died at 79. My mother (who never worked) now receives half his NHS pension. Apparently it will increase a bit because it is index linked I think. Can I just confirm that she will get that half for the rest of her life, ie no other funds can be drawn from it, it is merely a pay out of half. If she died tomorrow the remainder would be left to the NHS pension company.

[woofgang]

I believe that yes, its like a purchased annuity, she will receive that payment for life but it stops on her death. It should tell her in the paperwork.

[factor-fiction]

Yes the benefit will be paid for the rest of her life (and uprated annually) if it is a standard NHS pension and yes it will cease when she dies. Whilst it is the case that if she died tomorrow any remainder would be left with the pension scheme it may be that there isn't 'any remainder'- it depends whether he and she lived beyond the assumed typical age of death. Some pensioners die early and that leaves money in the pot for those who live much longer and claim much more than they had ever contributed to the pot.

[oschilds]

Factor

You will be certainly right in bond's case.
My husband worked for a bank and died before he retired.
There was a pension guarantee clause in his contract guaranteeing payment of his full pension to me for 5 years if he should pass away and I am getting it now.
There is another clause in the contract saying if I am not around to receive the 5 years full pension it would be paid to our estate and the beneficiaries are our 2 children.
I am not sure how it would be paid to them should the situation arise.
I would presume it would be a lump sum payment.

Oschilds

[factor-fiction]

Thanks oschilds. Welcome back.