Occupational Pension AVC

dunstonh

Anything with a GMP is normally required to be invested in the insurer's With profits fund.Is that the case here?

That was correct historically (mainly due to lack of any alternative!). However, thats not the case anymore and a 2004 one should have access to the Scot Eq internal fund range.

My concern is that the breaking up the policy could kill certain guarantees as Scot Eq may have to transfer the pension into another one to allow the split to happen. its not always the case but is something that would need checking.

EdInvestor

dunstonh wrote: »

My concern is that the breaking up the policy could kill certain guarantees as Scot Eq may have to transfer the pension into another one to allow the split to happen.

Quite so. I don't really think we can take this one further until we know exactly what it is.

An AVC with a GMP would seem to be a previously unknown beast.

It would help if sabelu could find out the amount of the Guaranteed Minimum Pension at the date he becomes eligible to receive it under the terms of the plan.

dunstonh

An AVC with a GMP would seem to be a previously unknown beast.

I know. I have never seen one before and had you asked me previously it if was possible I would have answered no. I really thought it was a section 32.

sabelu

Received this email today from the Pension Administrators, any observations?

Thank you for you e-mails regarding the GMP from your transfer in to the scheme.
Hargreaves Lansdown have informed us that, if you choose to transfer your AVCs to your SIPP, they would not be able to accept the GMP element and so we would retain a portion of the AVC fund to cover the GMP liability and transfer the value of the fund in excess of this GMP liability to them. If this is not the case, please ask them to confirm this in writing.
The GMP entitlement from the transfer in will be £1953.64 per annum at your Normal Retirement age of 65.

EdInvestor

Sabelu

Earlier you said

Scottish Eq have confirmed although this is referred to as an AVC within the scheme it is clear in the transfer documentation that this is not an AVC.

Could you please call them up and ask them what it actually is ?

sabelu

EdInvestor wrote: »

Sabelu

Earlier you said



Could you please call them up and ask them what it actually is ?

Will do but its referred to as an AVC but not an AVC in the true sense as I explained before it was a transferred pension from a previous employer. It is referred to as an Ext Balanced Fund Inv

sabelu

EdInvestor wrote: »

Sabelu

Earlier you said



Could you please call them up and ask them what it actually is ?

Watson Wyatt have replied as below:

The Scheme rules state that all transfer values received by The xxxxxx Pension Scheme - xxxxxxxx Section must be transferred into an AVC policy with the Scheme's AVC provider. The transfer in is therefore not strictly an AVC but is held in a way similar to an AVC or money purchase arrangement

EdInvestor

The avc is worth £67k but have been advised of a GMP £18k ....
The GMP entitlement from the transfer in will be £1953.64 per annum at your Normal Retirement age of 65.

Seems reasonable.

Therefore £49k will be transferred into a Hargreaves Lansdowne SIPPS acount, what reputation have they got?

Didn't you choose them yourself?

sabelu

EdInvestor wrote: »

Seems reasonable.



Didn't you choose them yourself?

Yes but did some research

sabelu

All sorted now and on my way to investing my funds. I have a few ideas but anyone any tips/where to invest?