Royal Mail refers bereaved family to charity
A woman who set up an online petition to get her late mother’s pension released after the Royal Mail said it would not pay out, has received more than 130,000 signatures in support.
In 2014, following a diagnosis of pancreatic cancer, Barbara McVeigh had called the Royal Mail, her employer of 20 years, to cash in her pension with immediate effect to cover her funeral costs and help her daughter’s family.
Her daughter, Sharon Hawkins, had worked at the same Royal Mail canteen as her mother, who retired in 2006 aged 60.
Ms McVeigh was told to put the request in writing but died on the same day Royal Mail received the letter.
Ms Hawkins said: “Unfortunately the cancer moved fast. Royal Mail received mum’s letter in the morning and by the afternoon she was gone. Now my mum is gone I have not been able to grieve. Instead, I have been battling Royal Mail for the pension she earned as a loyal employee of 20 years.”
Royal Mail said Ms McVeigh had claimed her pension for eight years before she died and rules state that she could only cash in the pension during the first five years.
The pension scheme administrators explained it was not possible under current pensions legislation, and as defined by Revenue & Customs.
A Royal Mail spokesman said: “As is the case with all pension schemes, benefits are payable to the pensioner and their spouse, both of whom are now deceased. Payments cannot be made to other family members, who are not financially dependent, after their death.”
Tim Cox, partner and pension law specialist at London-based Linklaters, confirmed that Royal Mail had followed HMRC rules and that it was the way in which schemes worked.
If an employee lived until 100 the scheme would be obliged to pay their pension until death.
He said: “Under most schemes, if you retire the pension is guaranteed for five years, and will pay out a cash sum to a dependent. If you die before five years, the scheme will pay the balance as a cash sum, however they are not obliged to pay out after five years.
“If completed, the trustees will take into consideration the member’s wishes set out in an expression of wishes letter only if a lump sum was payable.”
Right to Reply
A spokesman for Royal Mail said: “Following our conversations with Ms Hawkins, we have introduced her to the Rowland Hill Fund, a charity set up to provide financial assistance to Royal Mail employees, ex-employees, pensioners or their relatives in times of financial hardship.
“The fund is currently working with Ms Hawkins to review her case and assess whether financial support can be made available to her.”
