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S.32 Pension
parcival
Posts: 949 Forumite
I have a section 32 pension with the Pru that was set up following transfer from Barclays final salary pension.
Selected Pension date is in 2015 when I will be 60. (State retirement date is 2020)
It is made up of 2 sets of with profits units. WP1 has a value of 29k. WP2 has a value of 19k. There is a separate final bonus of 21k.
The WP2 units are to support a GMP of about £4800. The paperwork seems to indicate that as long as I wait until the SPD in 2015 they will use the WP2 units to support the GMP leaving the WP1 units and the final bonus to buy extra pension.
Clearly the WP2 units are not able to support a GMP of £4800. Are they obligated to honour this arrangement??
Selected Pension date is in 2015 when I will be 60. (State retirement date is 2020)
It is made up of 2 sets of with profits units. WP1 has a value of 29k. WP2 has a value of 19k. There is a separate final bonus of 21k.
The WP2 units are to support a GMP of about £4800. The paperwork seems to indicate that as long as I wait until the SPD in 2015 they will use the WP2 units to support the GMP leaving the WP1 units and the final bonus to buy extra pension.
Clearly the WP2 units are not able to support a GMP of £4800. Are they obligated to honour this arrangement??
0
Comments
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Are they obligated to honour this arrangement??
Yes. They have to meet the GMP even if the fund itself is insufficient.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks - but to be 100% clear........
They must honour the GMP at age 60 (SPD) from the WP2 fund - ie they cannot use the WP1 units or the final bonus to fund the GMP portion?0
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