BACK IN 2017 WE TOLD YOUTHE STORY OF CHARLOTTE HUGHES, AYOUNG WIDOW WHOSE HUSBAND HAD DIED.
MOD honoured an old nomination form, paying the death-in-service lump sum of over £120K to his mate rather than his wife, even though there was strong evidence to show that that had not been his intention.
In this short article Mary Petley of the Forces Pension Society explains what happened next and looks at the rules as they stand now.
Charlotte’s plight was taken up by the Society and we helped her make her case to the Pensions Ombudsman. Unfortunately,the Pensions Ombudsman found that the MOD had behaved correctly as the wording of the rules meant that MOD had not got the discretion to ignore Sergeant Hughes’ original nomination form. However, recognising the unfairness of Charlotte’s position, MOD have changed the AFPS 05 and AFPS 15 scheme rules to avoid the same thing happening to another widow or widower in the future.
AFPS 75 did not need to be changed as it specifies exactly who is eligible to receive any death-in-service lump sum or pension lump sum in the event of the member’s death -sothere is no ability to nominate.
Both AFPS 05 and AFPS 15 allow the member to nominate one or more people or organisations as recipients. Nominations must be made on an AFPS Form 2and, if more than one person or organisation is nominated, it must be specified how the sum is to be divided. Veterans UK will comply with the wishes expressed in the nomination from unless one of the following applies, in which case the original nomination will lapse:
• The nominee dies before the member;
• The nominee is the member’s spouse or civil partner and the relationship is legally dissolved. The member may re-nominate the ‘ex’ after the decree absolute, should they so wish;
• The member married or entered into acivil partnership from 1 December 2018 –and this is Charlotte’s Rule. If your marriage pre-dates the change, it worth checking that any existing nomination reflect the family’s current needs.
• The nominee is convicted of the murder or manslaughter of the member (and potentially any other offences relating to the nominee killing or wounding of amember,depending on circumstances).
Nominations are intended to make the member’s wishes clear and, where one exists, anomination means that Veterans UK can arrange swift payment to the nominee(s). Completion of an AFPS Form 2isparticularly useful in the case of unmarried partners, where Veterans UK will be looking for evidence of financial dependence or interdependence in order for the partner to qualify for apension. A nomination provides some evidence of the member’s intention to provide for his or her partner’s financial wellbeing and, as such, can help Veterans UK reach aspeedy conclusion. If there is no nomination, the lump sum will eventually go to the spouse or civil partner,or unmarried partner or,failing that, to the estate. Speed of payment is the obvious advantage but there is adanger that an old neglected nomination could result in the payment going speedily to the wrong person!
ENVOY
SPRING 2019
raf-ff.org.uk
26
FINANCIAL FORCES PENSION SOCIETY
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