Mistake with annuity, what do I do?

jamesd

See this description of the legal requirements for a transfer that the scheme the money is coming from is supposed to be enforcing.

GMP looks a lot more messy to transfer than protected rights, where the protections were simply abolished a few years ago and the protected rights pots are now just normal pension pots. Of course messy just means more protection for those who fit the model: those in couples with normal life expectancy. And less value for those who don't.

Level isn't better, just different. Depends how long the person will live.

mania112

jamesd wrote: »

Level isn't better, just different. Depends how long the person will live.

Right, i meant if your goal is to get the highest possible income, level and no spouse benefit is better. (better is probably the wrong word though!)

I see your link, and I am happy with what GMP is, but I don't understand why it can't be just 'lost' on transfer and only the CETV applies.

You certainly can into a PP, not sure why an Annuity would be different.

Hopefully the OP will return to this thread once the situation is resolved.

dunstonh

Normally, the lump sum would be released at the same time as the payment under the open market option. If there is a hold up with one, there is a hold up with the other.

Normally on transfer, the GMP would be lost unless the new provider accepts it. This would be confirmed on any illustration of benefits that was issued. So, if the IFA says the company knew it and accepted it then it would be on the illustration and that should protect the IFA.

Personally, I rarely find current annuity rates anywhere near GMP with the applicable fund value. In fact, I think it would be over a decade since I last did one where OMO was recommended over sticking with the existing plan. I would expect a lower figure and would check carefully if it came back more given how unusual it is. I suspect that this IFA was done the same (or at least hope they have and havent missed the GMP).

Whatever happens, if a complaint is in process then you need to let it carry through its natural progression.

Mrs_Mum99

Thanks, everyone.
Still no news but will update when I know more.

Drp8713

Are you over your state pension age? It may be the case that your S2P pension has been finalised and they have to pay you the GMP and pensions increaae/ spouses pension that comes with it

Mrs_Mum99

No, I'm 59, my (revised twice) state pension age is 65years 5 months.

xylophone

Are you over your state pension age?

GMP for women is still payable at age 60 despite the change in state pension age.

Drp8713

I know but i have paid CEP's to NICO before for women over 60, so long as their state pension hasnt been finalised they will still accept them.

Mrs_Mum99

My IFA has now heard back from the annuity provider and I have received a copy.
It appears that the funds went across as omo and not a transfer and that is why I have to have the reduced annuity? The annuity provider did know about the GMP.
The annuity provider has upheld my complaint and is offering £200 as comp.
The difference between the escalating and level annuities at the start is over £1300 pa so this seems laughable to me.
I shall be taking this to the Financial Ombudsman.
Any opinions very welcome!!!

Mrs_Mum99

I guess what I'm really asking is, is it worth taking it to the Ombudsman, or is the compensation realistically what I'm likely to get?
How long is it likely to be before I get a decision from the Ombudsman?
Thanks