Section 32 buy-out with GMP

dragonslayer1

Yet another request for advice on a GMP.
In 1992 I opted out of my companies Pension scheme, 20k was transferred to a pension provider,, into a scheme Guaranteed Minimum Pension.
The Benefit date as quoted on the schedule is 2016 (my 60th).
Date of Leaving service is given as 1991.
The capital sum as stated on the policy and all subseqent statements is 82.5k. Quoting from the policy "At the Substitute Benefit Date such capital sum shall be increased or reduced in accordance with condition 9 or condition 8 (both conditions refer to either early/later retirement than the Benefit date as shown in the schedule ie 2016).
The following defintions are quoted.
MAXIMUM PENSION.
At the Benefit date and at any Substitute benefit date earlier than the Benefit date 2.9k per annum increased by the greater of 5% per annum compound and the accumulated increase int the retail prices index during the period between the date of leaving service and the benefit date.
GUARANTEED MINIMUM PENSION.
£794 per annum increased by 7.5% compound for each complete year from April 1992 to April immediately preseding the attainment by the insured of the State Pensionable age of 65....

My annual statements every year,, imply that I have 82k plus Bonus (Currently 19k) and implies that a final bonus may be payable..

Can someone please help !!!
So question is ... when does my plan mature ?? at 60 or 65 ?? and how much would I expect to receive either at 60 or 65 ??

Stan_Thomas

Good afternoon,

May I pose what I thought would be a simple question, but for which I have received a number of polarised answers from the experts.

I have a section 32 buy-out plan, adequately funded to provide a 25% tax-free payment, plus a pension with a 50% spouses pension - or an enhanced pension with a 25% spouses pension - thus suggesting some of my fund would be appropriated toward the spouses pension.

Whilst I have been told the spouses pension is compulsory, I am now told that HMRC rule-changes which come into effect on the 6th of April no longer require a spouses pension to be provided for.

What no-one can answer with any certainty however is whether or not the rule change applies to sec. 32 buy-out plans with GMP. May I therefore pose the following:

1) Is or would any portion of my pension fund be earmarked to provide a spouses pension?

2) As at April 6th, do I still have to take a pension with a compulsory spouses pension?

3) What is my best option in any event, given I seek to take the 25% tax free cash and to maximise my pension income given I am a single person?

The quandry is the pension holder has now told me I have until the 5th of June this year (my 75th birthday) after which I loose the right to the tax free cash and to transfer to an open market option.

Any advice would be warmly appreciated.

Stan Thomas