Pre-2006 SSAS Death benefits

benjaminfabi

Hi,

I have an old SSAS come in for review and I'm struggling with the scheme administrators.

• Parents and three children were all SSAS members pre-aday, all adults so the kids were not dependents.
• Both parents died within 6 months of each other in 2003.
• SSAS is worth c£2m, with c£45k of post aday contributions for them.

I have tried to ask the administrator (who is also the professional trustee) how the funds are beneficially owned. All they can (or will) tell me is that they were split equally between the three children on aday and subsequent contributions were treated the same.

One parent died, then 6 months later the other died, so presumably that first link is one of automatic dependency, with the investment continuing. My query is, what were the death benefit options for the remaining children on the death of the second parent, who were SSAS members pre-2006? And how would those funds currently be classified in a post-freedoms environment?

les_cameron

I think the only option would have been a lump sum death benefit - only dependents could get income options. Something not right here

benjaminfabi

Thanks Les. Turns out that pre-aday, all funds of deceased SSAS members could, as one option, revert to the SSAS for reallocation between the remaining members. As the children were members who didn't need any lump sum death benefits, this was the chosen option. On 6 April 2006, all funds became uncrystallised pension fund in their respective names.

les_cameron

@benjaminfabi said:
Thanks Les. Turns out that pre-aday, all funds of deceased SSAS members could, as one option, revert to the SSAS for reallocation between the remaining members. As the children were members who didn't need any lump sum death benefits, this was the chosen option. On 6 April 2006, all funds became uncrystallised pension fund in their respective names.

Thanks

I couldn't find my G60 book from 1998 and couldn't find anything in the old SSAS guidance notes. So went from memory.

benjaminfabi

Haha same! Institutional memory on these old schemes is getting rare these days!

les_cameron

I found my G60 book when looking for my government gateway ID letter so I could do my tax return! Actually doesn't have that option in it. Though I can see if a benefit was deemed not payable it would create "surplus" to get reallocated.