I can't find he answer anyplace on the web (so far) so I'll try the brains trust .. when a widow inherits SERPS, (at 100%, 50% or whatever, depending on ages of those involved) does the SERPS she inherits have the same contracted out deduction applied as was applied to it when the original partner was getting it?
i.e. 'A' was getting £40/mo SERPS, which was £100 less £60 Contracted out deduction. They die after retiring. Does their widow get x% of the £40, or x% of the £100??
That's an interesting question. Presumably she gets a widow's pension from his pension fund. If she inherits all his SERP, then I presume that the GMP remains the same, and the remainder is reduced by 50% (or whatever). I can't see why the GMP should fall, but maybe they reduce the overall total by 50% and the GMP is the level below which it cannot fall?
Probably a pension fund administrator, like Aon, might be able to answer it.
Bitstring , from the wonderful person Terry Harper said
Based on the numbers in hand in one particular case the spouse appears to be going to get more SERPS than the deceased did (40% more), so I can only assume that the Contracted Out Deduction went away, or the government assume the GMP from the company pension fund for surviving spouse is zero, or whatever.
Having dealt with Aon in the past, I decline to speculate. 8>.
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