QUESTION
Why is a spouse''s signature needed to receive a lump sum from a pension payment when the pension owner is no longer with the spouse?
Asked on Aug 10th, 2012 on General Practice - New York
More details to this question:
My mother started working for a company in 1986 through 1998. She had a pension that was to pay out beginning in 2011 and was just notified of the amount in May of 2012. She rejected the rollover option for an IRA and instead wants the lump sum but because she has a surviving spouse benefit they are requiring his signature as well to waive his rights to a spousal benefit. While she is not legally divorced she is legally separated and has been so since the mid 70''s. Is there any way around the necessity of his signature in order to receive the lump sum?
1 ANSWER
Not without a court order. All your mother's former employer knows is that your mother's legal spouse is going to lose benefits which he maintained even after the legal separation. Before it takes away those rights, it wants to make sure that he has consented. It doesn't want to be sued by him.
Answered on Aug 14th, 2012 at 5:38 PM