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Gmp
Mrs_Mum99
Posts: 72 Forumite
I have a defined contribution company pension scheme which I left in 1993.
I have a GMP which I can take at age 60. Scheme retirement age is 65 but I could have taken the pension at 55, if I had wanted to.
My question is, if i take the open market option, would any quotes I get have to include my GMP and the index linking it gets?
Would I need one pension annuity for the GMP element and another for the rest?
My fund will more than cover the GMP element.
If I decided to take my pension next year at age 59 do I lose my GMP entitlement?
I have a GMP which I can take at age 60. Scheme retirement age is 65 but I could have taken the pension at 55, if I had wanted to.
My question is, if i take the open market option, would any quotes I get have to include my GMP and the index linking it gets?
Would I need one pension annuity for the GMP element and another for the rest?
My fund will more than cover the GMP element.
If I decided to take my pension next year at age 59 do I lose my GMP entitlement?
0
Comments
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My question is, if i take the open market option, would any quotes I get have to include my GMP and the index linking it gets?
You lose the GMP when you OMO. You would also need to use the IVPPP transfer method instead of OMO method in most cases. (answer simplified)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 what is IVPPP?0
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Immediate vesting personal pension. Its one of the two transfer methods using in the open market option. Certain schemes cant use the OMO method and need to use the IVPPP method. (different forms with receiving scheme paying the tax free cash compared to OMO where the existing scheme pays the tax free cash)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
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So could I do the GMP bit with my pension plan people then see what's left and do an omo/ivppp with that?
Or is there no advantage to that?0
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