Transfer of Section 32 pension

worn_out

I do remember my mortgage rate being 15.5% back in those days....we were getting monthly pay rises at work inflation was so high...it was marvellous !!

As an aside, I understand that a complaint (from a Pension Advice Co.) has been made about NU/Aviva's failure to add annual bonuses to Section 32 schemes. Their argument is one I've had with them for many years, that their focus only on the guaranteed returns has led them to 'give up' on adding the annual bonuses to the fund, arguing that the 'promised' returns are way higher anyway. Personally I have felt this is wrong because annual bonuses have been paid most years on other types of policies (those without guarantees).

Although these bonuses may well not have given rise to a fund big enough to acquire a larger pension than the GMP, it does mean when the policy ends and the free market option kicks in, there is no real option other than to stick with Aviva. Obviously anyone who has a larger fund might well have seen an even bigger fund and thus be able to purchase an even better annuity.

I've asked them to let me know how the complaint turns out.

WBCPB

worn_out wrote: »

I do remember my mortgage rate being 15.5% back in those days....we were getting monthly pay rises at work inflation was so high...it was marvellous !!

As an aside, I understand that a complaint (from a Pension Advice Co.) has been made about NU/Aviva's failure to add annual bonuses to Section 32 schemes. Their argument is one I've had with them for many years, that their focus only on the guaranteed returns has led them to 'give up' on adding the annual bonuses to the fund, arguing that the 'promised' returns are way higher anyway. Personally I have felt this is wrong because annual bonuses have been paid most years on other types of policies (those without guarantees).

Although these bonuses may well not have given rise to a fund big enough to acquire a larger pension than the GMP, it does mean when the policy ends and the free market option kicks in, there is no real option other than to stick with Aviva. Obviously anyone who has a larger fund might well have seen an even bigger fund and thus be able to purchase an even better annuity.

I've asked them to let me know how the complaint turns out.

Hi,is it possible for you to supply a link to this complaint/Pension advice company please?

Regards

woolly_wombat

worn_out wrote: »

As an aside, I understand that a complaint (from a Pension Advice Co.) has been made about NU/Aviva's failure to add annual bonuses to Section 32 schemes. Their argument is one I've had with them for many years, that their focus only on the guaranteed returns has led them to 'give up' on adding the annual bonuses to the fund, arguing that the 'promised' returns are way higher anyway. Personally I have felt this is wrong because annual bonuses have been paid most years on other types of policies (those without guarantees).

Although these bonuses may well not have given rise to a fund big enough to acquire a larger pension than the GMP, it does mean when the policy ends and the free market option kicks in, there is no real option other than to stick with Aviva. Obviously anyone who has a larger fund might well have seen an even bigger fund and thus be able to purchase an even better annuity.

I've asked them to let me know how the complaint turns out.

Aviva must rue the day they decided to offer these policies.

The underlying fund value is pretty meaningless. Why not just do what my OH (who has one of these Aviva S32 schemes) is planning to do: enjoy your generous GMP and celebrate your good luck!

WW

worn_out

WBCPB wrote: »

Hi,is it possible for you to supply a link to this complaint/Pension advice company please?

Regards

it's pensionsandannuities.co.uk

worn_out

woolly_wombat wrote: »

Aviva must rue the day they decided to offer these policies.

The underlying fund value is pretty meaningless. Why not just do what my OH (who has one of these Aviva S32 schemes) is planning to do: enjoy your generous GMP and celebrate your good luck!

WW

too right, the 8.5% return over 20+ years is pretty good, plus you get annual inflation on the pension payment via your state pension apparently

woolly_wombat

worn_out wrote: »

too right, the 8.5% return over 20+ years is pretty good, plus you get annual inflation on the pension payment via your state pension apparently

Sadly it looks as if the inflation increases via state pension will not be applied for those retiring after 5 April 2016.
See this link:
http://www.ftadviser.com/2014/06/04/opinion/tony-hazell/dwp-s-orwellian-pensions-move-is-rather-sinister-OBV42u7b9Ovbz4QFn49RYJ/article.html

"What is more, in an Orwellian development, a DWP spokesman told me it is removing references from the parliamentary library.

“We are working with the parliamentary library to remove references to DWP indexing GMPs,” he said. “This stems from an oversimplification on additional state pension indexation.”

If such an “oversimplification” had been made by a financial company, they would be fined and ordered to pay restitution to investors. The government, however, appears likely to get away with this."


WW

greenglide

As discussed in this thread (amongst others) - https://forums.moneysavingexpert.com/discussion/4920460

Public sector schemes seem to be picking up the tab though.

woolly_wombat

Also from the link (entitled 'DWP's Orwellian pensions move is rather sinister'):
http://www.ftadviser.com/2014/06/04/opinion/tony-hazell/dwp-s-orwellian-pensions-move-is-rather-sinister-OBV42u7b9Ovbz4QFn49RYJ/article.html

"Information on inflationary increases to the GMP can be found in documents such as SN4956, published on 10 February 2012, and in A Guide to the State Pension, published by the Pensions Service in April 2004. Get your copies before they are erased from history."

WW

greenglide

What I fail to understand is if they do "erase it from history" how are DWP going to stand when they continue to pay inflation proofing for pre 88 GMP (they were responsible for it all) and post 88 GMS where they are responsible for anything over 3%?

Since HMG "expect" public sector schemes to take over responsibility for inflation proofing for all of the GMP (for people with SPA from 6/4/2016) is this because the previous rules will have "disappeared? What happens to private sector schemes?

Google will help them make it disappear !

worn_out

just stumbled across this again...
Not heard yet from Aviva what the final figures will be,but i've read through my policy (for a change). When it talks of minimum pensions it also mentions mximum pension amount too, and that anything above the maximum would be returned to the company scheme from which it came...

what's that all about ...i knind of thought there was no maximum as such