PENSION SCHEMES ACT 1993, PART X
DETERMINATION BY THE PENSIONS OMBUDSMAN
Recent Pensions Ombudsman determination:
Ref: 77828/2
www.pensions-ombudsman.org.uk/
"Applicant
Mr R W Morton
Scheme
MJF Associates Private Pension Scheme
Subject
Mr Morton has applied, as a sole trustee, for a determination of a question relating to the carrying out of his function. He has asked me to decide whether the provisions contained in a Court Order,dated 31 May 1995, amount to a nomination (and not a directive) which has been superseded by the terms of the will of Mr Michael John Franklin (Mr Franklin) dated 17 March 2006."
When Mr Franklin died his ex-wife expected to receive the death benefit lump sum from his pension;her divorce solicitors "explained that Mr Franklin had solemnly promised the court to direct the Trustees to nominate their client as the beneficiary of the lump sum payable on his death"
" Mr Franklin remarried in 1998 and while living in Thailand made a will on 17 March 2006 (the Will). Mr Franklin died on 7 January 2009 (aged 73) and is survived by his widow, a daughter of that marriage and by two children of his marriage to Mrs Paula Franklin. Probate of his Will has been granted to the two executors named in the Will who are the children of his marriage to Mrs Paula Franklin.
2.The Will recited that Mr Franklin had no assets in the UK apart from some shares, two bank account balances and “The MJF Associates Private Pension Scheme (administered by GMD Partnership…) that makes quarterly payments to Coutts….”.
3.In the Will Mr Franklin made provision for the children and grandchildren of his marriage to Mrs Paula Franklin and bequeathed the remainder of his estate to his widow. He also specified that:
“….my wife receives due income from MJF Associates Private Pension Scheme as I do now, or from any annuity that may be purchased. Plus the widow’s entitlement from my State Pension…”
"The Pensions Ombudsman’s determination and short reasons:
Mr Morton is entitled to regard both the Court Order and the Will as containing nominations by Mr Franklin as to whom his fund is to be paid on his death."
"7. By a Consent Court Order (the Court Order) issued in the Slough County Court, on 31 May 1995, in the divorce proceedings between Mr Franklin and Mrs Paula Franklin Mr Franklin undertook:
“to direct the Trustees of his Pension Fund to nominate the Petitioner as the Beneficiary of the lump sum payable on his death notwithstanding any subsequent remarriage of either the Respondent or the Petitioner”.
8. The Court made various orders for capital provision and for the dismissal of claims for periodical payments on the basis of this undertaking and on the basis of other agreements reached between the parties."
So now it's up to the pension trustee to decide whether their
Consent Order agreement on the pension is disregarded.
