Mis-Sold Section 32?

Renoir77

Hello:) my first post although I have been an avid reader for some time...

I have a Section 32 that matures later next month. The transfer plan is dated September 1988 and the payout will only be the GMP quoted in 1988. With no yearly increases or spouse payout after death.

I expected and was told at the time it would be much more.
Should I ask for a review of this and does anyone consider I was mis-sold this at the time. I should add that it is not a large sum of money. Your opinions would be greatly appreciated.

dunstonh

Should I ask for a review of this and does anyone consider I was mis-sold this at the time.

Most S32 sales between 88 and 94 were reviewed around 1994-2000. What was the outcome of your review? This would have involved a questionnaire being sent to you asking questions of how it was sold, why you did it etc. Based on those answers and an analysis of the documentation that existed, they would have made a decision.

We cant comment on whether we think yours was mis-sold or not as you havent told us anything about the sale.

Renoir77

Dunstonh...Thank you for your quick response and sorry if I worded the question a little incorrectly. I guess I was trying to say is it possible it could have been one of the mis-sold schemes. In reply to your question I can confirm that to the best of my memory (25 years worth !) that the policy has never been reviewed, I have never been sent anything as to who sold it to me or why did I take it out etc I know this because I tend to take copies of forms that I have to fill in giving such information. I intend to call the Pensions Advisory tomorrow as my gut feeling is I need to check this out before I sign anything. It is not the money aspect (as I said it is not a lot) but the principal of taking something that is possibly incorrect and not being able to do anything about it at a later stage.

xylophone

I have a Section 32 that matures later next month. The transfer plan is dated September 1988 and the payout will only be the GMP quoted in 1988. With no yearly increases

Are you sure of this? http://www.scottishlife.co.uk/scotlife/Web/Site/faq2.asp?category=S32%20buyout%20bonds#935
http://www.friendslife.co.uk/doclib/cpe4200704.pdf

Renoir77

xylophone...thank you for those links ...I am obviously not an expert in these things but as I understand it from my paperwork is that when the original fund went into the pot it did receive bonuses in the early years but the later years there has been none.

I now have the final papers and all it is paying is the GMP as quoted on the origin transfer plan dated September 1988 (no yearly increases and and no spouse payments upon death) and a guarantee period of 5 years. The forecast from my FA in 1988 projected that the fund would increase/payout at least 4 to 5 times the amount of the GMP when it matured. I understand things have changed but I did expect it to be more than just the GMP .

Is it possible that because my pot is small it went under the radar so far as a review was concerned?

xylophone

But surely the GMP has been revalued?
http://www.pruadviser.co.uk/content/nav/about/26674/pghome/49880/53732/53759/53768/53789/

Renoir77

xylophone....looking at the link you gave me and thank you for that...as I understand it...no I don not think it has been revalued.

The GMP as listed on my transfer plan dated 9/88 is exactly the same figure I am being told is going to be my yearly pension starting next month. As already mentioned I shall try and speak with someone at the Pensions advisory today. I will let you know how I get on.

Renoir77

Renoir77 wrote: »

xylophone....looking at the link you gave me and thank you for that...as I understand it...no I don not think it has been revalued.

The GMP as listed on my transfer plan dated 9/88 is exactly the same figure I am being told is going to be my yearly pension starting next month. As already mentioned I shall try and speak with someone at the Pensions advisory today. I will let you know how I get on.

Further to this post I have noticed on your link that it mentions that the GMP would be re-valued at State Pension Age? could this be the problem as I am a female in the 1950-55 age group and will not reach State Pension until I am almost 63?

xylophone

http://www.pensions-express.co.uk/pex.chi/news.html?id=241 - not wholly accurate now owing to change from RPI to CPI indexing and further change to SPA
http://www.maturetimes.co.uk/campaigns/pensions-benefits/3439-steve-webb-confirms-women-to-lose-gmp-increase-on-pension.html
But the gmp should have been revalued between 1988 and payment?

For indexation after age 60 and SPA see above.

I am puzzled and hope you will come back with explanation.

Renoir77

xylophone....Thank you again for those links. I have spoken to the Pensions Advisory today and they were very helpful. The pension age change then for women born between 1950-55 makes no difference to the GMP on my S32 and will pay at 60 but they confirmed there is a revaluation on my S32 but it is possibly incorrect and to go back to the provider. After some time on the phone to the provider it seems that the PAS may be correct and it is now being looked into. Would this miss calculation effect the final GMP fiqure? The figures mentioned were possibly 5% but could or should have been 8%. As already posted I have no memory of being informed of the revaluation in the first place. I am unsure if I should I post figures on here re the GMP and who's it is with?

xylophone

http://www.pensionsadvisoryservice.org.uk/workplace-pension-schemes/final-salary-schemes/revaluation

Possibly 7.5% if fixed rate revaluation is being used?

Do you have the original policy document? What does it say about the revaluation of the gmp?
And this might be of interest http://www.jameshay.co.uk/DocumentView.aspx?DocumentID=196