Campaigners have launched a petition on the Parliamentary website demanding the DWP and the Labour Party government take action.
DWP told to change state pension inheritance rules for loved ones
The Department for Work and Pensions is being urged to change state pension inheritance rules. Campaigners have launched a petition on the Parliamentary website demanding the DWP and the Labour Party government take action.
The petition urges: “Allow State Pension to be passed to children, long-term partners, and dependents. We ask the Government to change State Pension inheritance rules so that individuals can nominate a beneficiary such as their child, long-term cohabiting partner, or carer – or offer them a lump sum – so it is not just a spouse or civil partner inheriting from the pension as at present.
“State Pension benefits can only be inherited by a spouse/civil partner. Unmarried partners, adult children, or other dependents are excluded, even if financially dependent.
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“Many may support adult children with disabilities, or are cared for by someone other than a spouse or civil partner.
“We believe in having a system that recognises real-world relationships and dependency; allowing people to nominate a beneficiary, or offer a lump sum to dependents, could help protect vulnerable loved ones from financial hardship after bereavement.”
State Pension is based on the old rules if your partner reached, or would have reached, State Pension age before 6 April 2016. There are two parts to the old State Pension – the basic State Pension and the additional State Pension.
The additional State Pension used to be called the State Second Pension (S2P), State Earnings Related Pension Scheme (SERPS) and the Graduated Retirement Benefit (GRB).
The basic State Pension and the additional State Pension work slightly differently, and entitlement may have been built up under both the basic State Pension and the additional State Pension or just the basic State Pension.
What might be paid on death will depend on when the person who dies first reached their State Pension age and when you were married.
If your married or civil partner had delayed or stopped taking their State Pension (called deferring), you might be able to inherit part – or all – of the extra State Pension or lump sum they had built up.
You might be able to inherit part of your partner’s State Pension if they reached, or would have reached, State Pension age before 6 April 2016.