Transfer of Section 32 pension

jem16

ozbrit wrote: »

It appears Mike, that your section 32 was more complicated than mine. I contracted out of the Company pension which Ironically was also run by NU.
The Company pension was the standard 40/60 variety.

So in 1988 my financial adviser applied for the transfer value. Initially, i was offered ~10k.

Am I reading this correctly that you opted out of a final salary pension scheme which you later transferred out to a money purchase scheme?

ozbrit

Hmmm, not sure what a money purchase scheme is. If you're asking whether I opted out of a final salary scheme then yes. I was leaving the Company and was advised to open my own section 32 transfer plan to establish Independence from the Company's own scheme. In the 1980's Company pensions had a bad reputation, Employers had often been using them as a tool to dissuade their staff from leaving them. When anyone left the trustees would literally freeze the pension mostly to the detriment of the former staff member, but sometimes to the benefit of the staff who remained.

jem16

ozbrit wrote: »

In the 1980's Company pensions got a bad reputation, Employers had often been using them as a tool to dissuade their staff from leaving them. When anyone left the trustees would literally freeze the pension mostly to the detriment of the former staff member, but sometimes to the benefit of the staff who remained.

Is that factual or workplace myth?

I joined my company pension scheme in 1981, albeit a public sector one. The rules at that time said that on leaving you became a deferred member and your pension was calculated at the final salary on leaving and then increased in line with inflation from then.

My husband's final salary scheme (private sector), started in 1980, had exactly the same rules for those who left.

RichandJ

jem16 wrote: »

Is that factual or workplace myth?

I joined my company pension scheme in 1981, albeit a public sector one. The rules at that time said that on leaving you became a deferred member and your pension was calculated at the final salary on leaving and then increased in line with inflation from then.

My husband's final salary scheme (private sector), started in 1980, had exactly the same rules for those who left.

If someone left prior to 31/12/1985 then it is possible that all of a final salary benefit could have been 'frozen', i.e. not receive any revaluation in deferment.

The law said deferred benefits did not have to be increased between leaving and retirement at that time. Leave from 01/01/1986 onward and benefit earned from 01/01/1985 had to be revalued in deferment. Leave from 01/01/1990 and all the pension had to be.

This refers to pension in excess of GMP by the way. GMP has always had to be revalued.

portchieboy

I had to change occupation due to redundancy, and had a public centre role for 20 months. I joined the NUVOS scheme, and paid in £1k over the time.

I now work for the Southern Co-op, and am investigating their pension scheme. Now, I have just received pension details from Nuvos, and the TV is nearly £10k(!), but cash in is only £500.

If co-op don't take in the TV, I have read about serction 32 buy outs? Is this an option given the small fund, I just want to preserve the employers element as it seems criminal to lose it.

bigwuf

I am about to reach state retirement age and have an AVIVA (ex NU) Section 32 policy. The pension I have been offered is for the Guaranteed Minimum, no escalation and no guarantee. I too have the "weasel" words that BROOKSTREET has in his policy in the escalation section. In My policy there are more "weasel" words in both the guarantee period and defer retiring sections. So for me the best option is to take the money now and hope I live long enough to get a telegram from King William V.

However I have not been able to establish if the state pays an annual increase on my GMP pension. The DWP website indicates that for the past three years NIL inflation has been paid to people with a state pension and a Pre 1988 GMP pension. Is there any one out there who has a pre 1988 gmp pension and is getting an inflation increase in their state pension.

soon to be a pensioner - BIGWUF

xylophone

The DWP website indicates that for the past three years NIL inflation has been paid to people with a state pension and a Pre 1988 GMP pension.

There was no pre 88 additional state pension increase in 2010.
There was a 2.5% increase in BSP.
There was an increase in 2011 of 4.5% on BSP and 3.1% on pre 88 ASP.
There was an increase of 5.2% on BSP and pre 88 ASP in 2012.

The basic state pension increases (in payment) as per the triple guarantee - highest of 2.5%, CPI or increase in average earnings.
Pre 88 additional pension increases (in payment) by CPI.

kennyzola

I have a GMP buy out plan pension which I wish to transfer out to a stakeholder pension and take a lump sum and annuity now. Im 55 yrs old. I realise this will mean I will lose my guarantee, but how do I do this and can I do this myself?

bilbo51

Just marking this thread to read when I get back from holiday. :cool:

MIKE770

bigwuf wrote: »

I am about to reach state retirement age and have an AVIVA (ex NU) Section 32 policy. The pension I have been offered is for the Guaranteed Minimum, no escalation and no guarantee. I too have the "weasel" words that BROOKSTREET has in his policy in the escalation section. In My policy there are more "weasel" words in both the guarantee period and defer retiring sections. So for me the best option is to take the money now and hope I live long enough to get a telegram from King William V.

However I have not been able to establish if the state pays an annual increase on my GMP pension. The DWP website indicates that for the past three years NIL inflation has been paid to people with a state pension and a Pre 1988 GMP pension. Is there any one out there who has a pre 1988 gmp pension and is getting an inflation increase in their state pension.

soon to be a pensioner - BIGWUF

My pension was section 32 thru NU as yours, when I started to take the Pension luckily there was a built in clause and I attained more than the amount Annuities were going to offer me if I transfeered to them for my pension, so the NU section 32 of yours ahould be far better than normal no built in guarantee, even Pension Government department wrote just before retirement and stated you will be entitled to £xxx on this pension, that was before NU (Aviva) quoted the pension income figure.