Section 32 problems gmp and aviva

djcanderson

Yes I emailed her as requested she is supposed to be coming back to me when knows anything about my case.

xylophone

the law Aviva quote

If you have a S32 with GMP, then the insurer is bound to pay it and if your fund is not large enough, will not pay it until GMP age (65 for a man).

However, as Bob points out, it is possible to transfer out of a S32 if you are prepared to give up the GMP. See for example http://www.pensionsandannuities.co.uk/Guaranteed_minimum_Pension_GMP.htm

But you will need the advice of an IFA qualified in pension transfers.

http://www.fca.org.uk/firms/financial-services-products/investments/pension-transfers

http://www.unbiased.co.uk/

But have you contacted Aviva as above?

Your_Hero

He won't be able to transfer the S32 to an IVPP unless the transfer value is at least equal to the CETV of the GMP, which is probably what's happened in Bob's case (particularly as some companies offer enhanced transfer values to get the liability off their books).

There is a high chance that this won't be the case here which is why it's not possible. You can't just offer to give up the GMP if the transfer value is too low.

djcanderson

Hopefully the Aviva rep will come back with some information but I think I need the services of a good IFA.
I'm still amazed that the government is going to allow folks to take their pensions as cash from 55---hopefully they do something for to allow the folk with zombie section 32 schemes and let them have freedom of choice too!

[Deleted User]

djcanderson wrote: »

Hopefully the Aviva rep will come back with some information but I think I need the services of a good IFA.
I'm still amazed that the government is going to allow folks to take their pensions as cash from 55---hopefully they do something for to allow the folk with zombie section 32 schemes and let them have freedom of choice too!

Hi djcanderson

Thanks for your posts.

We're still waiting to hear back before we send you an update but I'll chase this for you today and will email you as soon as I've heard back.

I hope this helps and thanks so much for your patience.

Stephanie

Aviva Social Media Team

djcanderson

Thanks Stephanie

xylophone

He won't be able to transfer the S32 to an IVPP unless the transfer value is at least equal to the CETV of the GMP, which is probably what's happened in Bob's case (particularly as some companies offer enhanced transfer values to get the liability off their books).

There is a high chance that this won't be the case here which is why it's not possible. You can't just offer to give up the GMP if the transfer value is too low.

See https://forums.moneysavingexpert.com/discussion/4916250
Post 11
"By law,a transfer can only take place if the company`s actuaries can certify that the transfer value available is greater than the amount needed,on a prescribed basis,to provide the Guaranteed Minimum Pension liabilty held under your plan.This amount is known as the cash equivalent transfer value (CETV )
The CETV calculation has been done and and the value is lower than the transfer value on the policy,therefore a transfer of benefits is allowed".

[Deleted User]

djcanderson wrote: »

Thanks Stephanie

Hi djcanderson

Just to let you know, you should be receiving a call this afternoon to discuss your concerns.

I hope this helps but if you have any further queries, please don't hesitate to get back to in touch.

Many Thanks

Stephanie

Aviva Social Media Team

djcanderson

Thanks Stephanie,
Your colleague phoned and although nothing sorted I felt he was trying to be helpful.
David

dunstonh

There is little Aviva can do as this is an advice issue and they are not set up for that.