HR People? Anyone familiar with Pensions?

[Snowflakey]

I don't have all the fact yet but I want to be as prepared as I can. Long story short - my FIL passed away 19 years ago. MIL has Alzheimer's and just recently DH and I have been brought in to take over her finances.

I noticed she doesn't get a monthly payment from where my FIL worked for 26 years - he was a fireman.

I called the City office to inquire and I'm on week 3 now of them not getting back to me. They did say last week they will let me know this week and if I am "free" to come in to talk. This leads me to believe they either know or think there was a pension and/or life policy.

My FIL died at the age of 64 but he was retired.

My question is this - it's been 19 years since he passed. I know for a fact my MIL had no idea what, if any, policies he had. It's just how it was back then. If there is a pension policy is there anything I can do about the 19 years of missed time being able to draw from it? It breaks my heart to know if there is a policy my MIL can't enjoy it in the condition she is now.

This fire department knew the moment he passed away. They were a part of the funeral and we had a "final ride" where his casket was on top of the fire truck that stopped in front of the fire house for a final alarm - so emotional that was

Thanks in advance for any guidance.

 

[morgan98]

I know enough to be dangerous.

My first thought is this, when you have a pension very often you have to elect to have a survivor benefit. In other words, you elect if you want a higher monthly payment for the period in which the employee is living, or a lower monthly payment that continues on to the spouse after the employee's death. It is possible your FIL did not elect survivor benefits.

I guess it is also possible something was missed at the time of his death to convert the payment over.

These parameters, in general, are determined by the agreement of the particular retirement plan. You are going to need to talk to the Fire Department about this specific situation.

 

[Distinkt]

Even if your FIL had a pension, the details vary according to the exact stipulations that he and your MIL may have elected. He may not have been eligible to receive the pension before he reached his full retirement age, or he could have elected not to include your MIL in the payout in order to receive a higher monthly sum. He might have not signed your MIL up to receive benefits before full retirement age should he die, and then he passed and she was not able to receive them. There are so many wrinkles, but generally to elect not to include a spouse you have to sign so forms excluding her payout. Sometimes people think that they will live a long time especially if they are retiring early and forget that they could pass and their spouse might be dependent on the money. Instead they want to maximize the immediate monthly or lump sum payout.

Best thing you can do is look for any paperwork or records of his pension/retirement details and then go from there. I would think that you will need to go talk to them. It is probably too complicated to explain his plan and his elections over the phone. It not as simple as confirming that he, indeed, had a pension. I would also expect that before they might speak to you you might have to show them some documentation confirming you have the authority to inquire about his finances and to manage your MIL interests.

 

[cabanafrau]

The fire department being aware of the death to mark it ceremoniously isn't the same thing as official notifications taking place for administrative purposes. If the necessary administrative steps weren't taken at the time corrective action now doesn't necessarily mean 19 years of missed payments will be made now.

 

[_19disnA]

Your FIL might have also chosen the 'lump sum' option for his pension that some companies offer. He might have gotten a one-time payment when he first retired. No one here can answer the specifics since each employer has their own unique way of handling pensions. You will need to have a power of attorney document for financial matters before any employer will discuss his particular situation with you regardless of whether you contact them over the phone or in person. I would start by looking at any older documents they may still have in their possession. If you have access to banking statements, you might also be able to search back to see how things were originally handled.

 

[Southernmiss]

It depends. My DH was an employee of our state under the same retirement system as teachers, fire and police, and other public servants. When he was ready to retire, we went to a retirement seminar where the pensions were explained.

There were choices for the employee to take the pension and leave no survivor benefit or to take a reduced benefit and leave a survivor benefit.

We are still young and I would need his income as we see kids through college. So he opted for the survivor benefit. Doing this only reduced his sole monthly benefit by about $200. A bargain considering he retired at age 45 and hopefully will live for another 45 years. But if not, I will be ok.

DH's stepfather retired about age 58 from the Federal Government. For whatever reason, they did not choose survivor benefits. He died at age 66. Left his mom with some scrambling to do to adjust her finances to cover her needs.

 

[mjkacmom]

My mom elected not to have survivor benefits for my dad. She was incredibly healthy and he was not (overweight, Alzheimer’s). He outlived her for 3 years, and had to pay $500 a month to keep the same healthcare plan.

 

[Snowflakey]

Thanks everyone! Big help! We have the POA paperwork and a death certificate. Sadly, anything else paperwork wise is no where to be found. She moved several years ago and threw everything away.

Actually I'm hoping there is nothing there - would make it much easier.