open market option for private pension

SILLYGRIN13

Can anyone help us. my husband has private pension funds held by Aviva. He reached 65 in Feb. and decided to take the open market option as another annuity company offered a better deal. Aviva have been very slow in releasing firstly information and now the funds. Does anyone know how long they can legally hold on to the funds when open market option is taken. Are we ever likely to get his pension or can they hold on for as long as they like? Getting desperate now:(

dunstonh

Aviva have been very slow in releasing firstly information and now the funds.

Aviva are really fast at releasing funds on modern plans. Heritage plans can be quite slow though. (heritage are old plans, often with legacy insurers they bought/merged with over the year)

Does anyone know how long they can legally hold on to the funds when open market option is taken.

6 months if all paperwork is complete.

One assumes you are using an IFA as that is where you get the best rates. What does your IFA say?
Are you using the OMO method or IVPPP method?
Is the receiving scheme using the options system or paper method?

zagfles

Give the TPAS a ring - they are very helpful and will be able to offer you advice in plain English. See http://www.pensionsadvisoryservice.org.uk/contact-us.aspx

SILLYGRIN13

Thank you for your reply dunstonh could you explain what omo and IVPPP mean simply please. thanks

bmm78

OMO = Open Market Option

IVPP = Immediate Vesting Personal Pension


Essentially, with an OMO the existing provider will pay the tax free cash and then transfer the remainder to the annuity company. With an IVPP the existing provider will transfer the full fund, and the annuity company will pay tax free cash.

The "Options" system is a service many providers use, which can considerably reduce the transfer times. "Paper method" is pretty much how it sounds, and usually not the most efficient way of transferring funds.

This may not mean a lot at this point in time, but any info you have can help us to establish what the issue is.


If you are using an intermediary (ie an IFA or annuity broker) they should be able to give you a clear explanation of what is causing the delay. If not, you will need to contact Aviva direct. If you are speaking to pension providers it is really important to be clear about what information you want, and if what they tell you doesn't make sense ask them to explain it in plain English. If you can't get the answers you need, insist on being put through to someone who can provide them. A lot of the time it is a matter of asking the right questions to the right people.

dunstonh

I was positioning those questions as things to ask your adviser if you were using one.

IVPPP uses different forms to OMO. yet both end up with a similar outcome for you. Sometimes people get the wrong forms for the method used. Sometimes people dont even complete the transfer forms needed by the existing provider and they are sitting there waiting for them. So, nothing happens as it is in a waiting for forms status.

Whoever your adviser/intermediary is, you need to ask them. This is what you are paying them for. (adviser is fee, non-advised is commission but both methods result in them being paid).