Mis-Sold Section 32?

little_monkey

Can i ask who is the section 32 with?

Renoir77

xylophone...firstly I cannot thank you enough for taking the time and trouble to help me with this:T I am sure you can tell from my posts that I am a bit confused by all the terminology OK I now believe by looking at your link that the fixed rate re-valuation may be the 8.5% as I left my employment in September 1983 (office closed made redundant after 10 years) and yes I do have the original policy document and under the GMP heading it mentions £??? per annum increased by whichever is the lower of 5% compound for each complete year from 6/4/1984 to the 6th April immediately preceding the state pension age of 60 or death...so that would be 2012. I cannot see anything worded revaluation. The next heading is Percentage Escalation rate 3% per annum compound.

Little Monkey ...The policy is with Aviva originally Norwich Union ...I'm assuming they are pretty much alike?

little_monkey

Renoir77 wrote: »

xylophone...firstly I cannot thank you enough for taking the time and trouble to help me with this:T I am sure you can tell from my posts that I am a bit confused by all the terminology OK I now believe by looking at your link that the fixed rate re-valuation may be the 8.5% as I left my employment in September 1983 (office closed made redundant after 10 years) and yes I do have the original policy document and under the GMP heading it mentions £??? per annum increased by whichever is the lower of 5% compound for each complete year from 6/4/1984 to the 6th April immediately preceding the state pension age of 60 or death...so that would be 2012. I cannot see anything worded revaluation. The next heading is Percentage Escalation rate 3% per annum compound.

Little Monkey ...The policy is with Aviva originally Norwich Union ...I'm assuming they are pretty much alike?

SNAP....same happened to me but a little later, 1991..mine's with aviva too..i don't seem to have had a statement off them for ages,i must get in touch with them..also i claimed mis-selling about this policy,can't remember the year but it was in the late 90,s i think.I think the government set up some department to deal with people who did'nt have proper details about the transfer..they found all the details and won a claim for me,it was'nt much and it was an amount they put into another section 32 to run at the side of the mis-sold one.

xylophone

increased by whichever is the lower of 5%

Then is the "limited revaluation" method being used? TPAS link in post 11
There are three methods of revaluing the GMP:

Section 148 orders - This involves increasing the GMP in line with the annual rate of increase of National Average Earnings;
Fixed Revaluation - This is a rate of annual increase laid down, and periodically changed, by Government. Revaluation rates are:
o Left service between 6 April 1978 and 5 April 1988 - 8.5% per annum.

o Between 6 April 1988 and 5 April 1993 - 7.5% per annum.

o Between 6 April 1993 and 5 April 1997 - 7.0% per annum.

o Between 6 April 1997 and 5 April 2002 - 6.25% per annum

o Between 6 April 2002 and 5 April 2007 - 4.5% per annum

o Between 6 April 2007 and 5 April 2012 - 4% per annum

o After 5 April 2012 - 4.75% per annum

Limited Revaluation - Under this method the GMP is revalued in line with S148 Orders (see above) but only 5% per annum compound will come from the scheme while any balance will be paid by the State Scheme in return for a payment made by the trustees at the time of leaving.
It is for the trustees of each scheme to adopt whichever of the above three methods it wishes.

Have you obtained a state pension forecast? https://www.gov.uk/contact-pension-service In view of http://www.maturetimes.co.uk/campaigns/pensions-benefits/3439-steve-webb-confirms-women-to-lose-gmp-increase-on-pension.html you might like to ring The Pensions Service to clarify your position?

xylophone

You might also be interested in this http://www.barnett-waddingham.co.uk/news/2012/07/what-is-a-gmp/ which given the information in your post 13

September 1983

explains the lack of spouse pension

"Provision of GMP includes a spouse's pension of one half of the GMP; although for female members this only applies to GMP earned after 6 April 1988."

Renoir77

Once again thank you Xylophone for your time and expertise:) I have spoken with Aviva today and they are rechecking the S32 and it is looking likely it has been calculated incorrectly. A letter is in the post so I will wait to see the outcome of that.

Littlemonkey thank you so much for your post :T it has made me even more determined to make sure I have not been mis-sold this as you said it's not the money aspect at all because it's just that it's your money being misused. Was it the Pensions Advisory that helped you?

little_monkey

Renoir77 wrote: »

Once again thank you Xylophone for your time and expertise:) I have spoken with Aviva today and they are rechecking the S32 and it is looking likely it has been calculated incorrectly. A letter is in the post so I will wait to see the outcome of that.

Littlemonkey thank you so much for your post :T it has made me even more determined to make sure I have not been mis-sold this as you said it's not the money aspect at all because it's just that it's your money being misused. Was it the Pensions Advisory that helped you?

I've got to say i don't think at that time it was the pension advisory service,but then again it might have been them under a different name...I do get a vague recall that it might have been a department from the financial services authority at that time...I think they might have ceased now from there doing that type of investigation..and hopefully the pension advisory service can do the same for you.


P.S. just found this,hope its not bad news for you,you could always email them and ask if they can help.

http://www.fsa.gov.uk/library/communication/pr/2002/010.shtml

Renoir77

Littlemonkey Thank you for that will wait for my letter from Aviva ...realy helpful guy there who said they even had a mis-sold department...I bet their are busy;)

xylophone I have been getting regular state pension forecasts for the last few years...but it's surprising how many don't bother or don't seem to know about it

xylophone

You need to separate the question of misselling from the question of the calculation ( or miscalculation) of the S32 benefits.

You said that you left the job in question because of redundancy and because your office closed.

Did the company close so that there was a trustee buy out for everybody in the pension scheme (Final salary? Defined benefits?) or did you individually decide to seek advice about moving a deferred pension?

Have a look at this thread https://forums.moneysavingexpert.com/discussion/comment/58934453#Comment_58934453

Renoir77

Hi We had 5 offices in East Anglia 3 closed and 2 remained. I was made redundant. The company did not close and is still in business today (under a slightly changed name). Worked for around 15 months temping then gained employment but unable to transfer it to their scheme can't remember why not. It was suggested at that time in letter form from my old employer to possibly move it to a S32 and I also have a final figure if left with them too. I still have that letter. The adviser I saw (agent for Aviva) suggested it would make 4 to 5 times more if moved. Maybe he saw those figures and tempted me with the s32, who know's ? In one way yes I decided to move it but trusted the agent and old company's advice. At the time things were unstable and my old company could have folded. As far as I can remember most of my colleagues did much the same because employment was thin on the ground for most of us (early 80's). Thank you once again for your time I'll check that link. I might I had no idea what an s32 was until it was suggested to me.