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  • FIRST POST
    • AnotnaC7
    • By AnotnaC7 13th Jan 18, 9:32 PM
    • 11Posts
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    AnotnaC7
    GMP keep or transfer over
    • #1
    • 13th Jan 18, 9:32 PM
    GMP keep or transfer over 13th Jan 18 at 9:32 PM
    We are in the process of moving from a Company Defined Contributions pension scheme over to Aviva savings plan, my pension pot has some pre 97 GMP funds. What would be the recommended course of action -
    1. Leave Pre97 GMP funds in deferred Company Plan and Transfer remainder of Post 97 Funds over to new pension scheme.
    2. Leave complete funds in deferred company plan
    3. Transfer complete funds to Aviva Savings Plan
    The numbers are similar to these,
    Post 97 funds £160k
    GMP Funds - 40k
    GMP Underpin - 30k (What is this??)
    GMP quoted as £35/week at GMP age
    17 years until retirement age, 15 years to GMP age
Page 1
    • xylophone
    • By xylophone 13th Jan 18, 11:48 PM
    • 24,049 Posts
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    xylophone
    • #2
    • 13th Jan 18, 11:48 PM
    • #2
    • 13th Jan 18, 11:48 PM
    We are in the process of moving from a Company Defined Contributions pension scheme over to Aviva savings plan,
    Do you mean that your company is closing a hybrid scheme which will be replaced by a pure DC with Aviva?

    http://www.mycompanypension.co.uk/What-is-a-Money-Purchase-Scheme-with-a-Defined-Benefit-Underpin-Pensioner-Members-DB

    https://www.sackers.com/publication/transfer-rights-post-april-2015/

    You are male, aged 50 and when you refer to retirement you mean an SPA of 67?

    Have you obtained a state pension statement?
    • AnotnaC7
    • By AnotnaC7 14th Jan 18, 10:05 AM
    • 11 Posts
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    AnotnaC7
    • #3
    • 14th Jan 18, 10:05 AM
    • #3
    • 14th Jan 18, 10:05 AM
    xylophone not sure what you mean by Hybrid scheme, it is the company pension scheme that I have been paying into for 20 years.


    Yes SPA 67, I have checked online statement and will achieve £155/week after 5 more years NIC's
    • xylophone
    • By xylophone 14th Jan 18, 2:57 PM
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    xylophone
    • #4
    • 14th Jan 18, 2:57 PM
    • #4
    • 14th Jan 18, 2:57 PM
    Hybrid scheme,
    Have you read the link in my post above?

    More here

    http://www.pensionsauthority.ie/en/LifeCycle/Private_pensions/Hybrid_pension_schemes/
    • AnotnaC7
    • By AnotnaC7 15th Jan 18, 2:48 PM
    • 11 Posts
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    AnotnaC7
    • #5
    • 15th Jan 18, 2:48 PM
    • #5
    • 15th Jan 18, 2:48 PM
    xylophone I do not think it is a Hybrid scheme...
    extract from documentation received...




    What’s Changing

    From 1st July 2017 all future DC will not be invested in the ****** *****(UK) Pension Plan(the Current Plan), but will instead be invested in the ****** ******UK Retirement Savings Plan of the Mercer Master Trust arrangement (the new savings plan).

    In addition to future contributions, the intention is that members’ benefits which accrued in the Current Plan in relation to service with ****** ****** from 6th April 1997(Post 97 Funds) will also (Unless they have tax free cash protection) be transferred to the new Savings Plan.

    The new savings plan is a section of the Mercer Master Trust arrangement. The Mercer Master Trust also provides workplace pension savings for a large number of other companies and members. The scale and size of the Master Trust helps deliver services, communications, education for members and investment at competitive pricing.

    The DC savings built up in the Current Plan that have accrued based on service with the company prior to 6th April 1997 (Pre97 funds) will remain in the Current Plan. However, you can elect to transfer your Pre 1997 funds to the New Savings Plan.
    • xylophone
    • By xylophone 15th Jan 18, 5:53 PM
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    xylophone
    • #6
    • 15th Jan 18, 5:53 PM
    • #6
    • 15th Jan 18, 5:53 PM
    I do not think it is a Hybrid scheme...

    But you refer to a GMP underpin.... see links in my previous.

    You also refer to a "deferred" Company Plan which usually indicates a Defined Benefit in some shape or form.

    Is the existing pension a hybrid scheme?

    http://www.pensionsage.com/pa/Hybrid-benefits.php


    https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

    Or was there once a DB pension and an AVC on a DC basis?
    • xylophone
    • By xylophone 15th Jan 18, 7:41 PM
    • 24,049 Posts
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    xylophone
    • #7
    • 15th Jan 18, 7:41 PM
    • #7
    • 15th Jan 18, 7:41 PM
    You have been contributing to the old scheme for twenty years.

    Do you have an explanatory booklet about the old scheme?
    • AnotnaC7
    • By AnotnaC7 16th Jan 18, 9:17 PM
    • 11 Posts
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    AnotnaC7
    • #8
    • 16th Jan 18, 9:17 PM
    • #8
    • 16th Jan 18, 9:17 PM
    I have most documentation from the last 20 years, what am I looking for
    • xylophone
    • By xylophone 16th Jan 18, 10:08 PM
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    xylophone
    • #9
    • 16th Jan 18, 10:08 PM
    • #9
    • 16th Jan 18, 10:08 PM
    What does your documentation tell you about pension accrual, the type of scheme and the GMP /reference scheme test underpin?
    • AnotnaC7
    • By AnotnaC7 18th Jan 18, 8:14 PM
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    AnotnaC7
    Thanks xylophone, It is not a final salary scheme, it is a salary swap managed fund?
    • xylophone
    • By xylophone 18th Jan 18, 9:23 PM
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    xylophone
    it is a salary swap managed fund?
    You mean that your pension contributions are made via salary sacrifice to a managed fund?

    But you were asking about the GMP underpin which applied to the old plan which was also salary sacrifice (and did you sort out the overpayment problem)?

    The old plan was a hybrid scheme? That is to say that it was money purchase with a DB underpin? See the previous links.

    Before you can decide on whether to choose to transfer the pre 97 benefits to the new plan you need to be able to compare the new plan with what was offered under the old.

    Ask the administrators of the old plan how the underpin works in this pension - see previous links on underpins.
    • AnotnaC7
    • By AnotnaC7 19th Jan 18, 8:15 PM
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    AnotnaC7
    The underpin is the amount that they say is required to cover the GMP payments due after contacting out of SERPS.


    The overpayments is another story not resolved yet..
    • xylophone
    • By xylophone 19th Jan 18, 10:22 PM
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    • 14,060 Thanks
    xylophone
    The underpin is the amount that they say is required to cover the GMP payments due after contacting out of SERPS.
    Then a form of hybrid - what form? See links in my posts above - ask the administrator if you don't know.
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