Section 32 problems gmp and aviva

xylophone

I guess the former overrides the latter.

http://www.financialadvice.net/s32_buy_out_plan/zone/1288

I think that it would be worth checking your precise situation.

The insurer must pay you at least your revalued GMP from GMP age (65 for a man, 60 for a woman).

Your old DB scheme would have had the same obligation.


It is possible that if you had remained a deferred pensioner in the old scheme, you would have been paid a pension based on your revalued excess at 60 with a step up (if required), at age 65.

On the other hand, you might have been paid your full pension (including GMP) at 60.

What is the situation with the CETV of the GMP on this policy?

See post 8, 13, 14,18.

HelpAtHand

You have a pm

Lekkguy

Well,after reading the comments on here and other websites I have decided to inform Aviva that I will be expecting to take my pension on my 62' birthday this April as per my policy.
A formal letter is on the way to them now.
Obviously they are going to reject my kind offer but lets wait and see.

dunstonh

Well,after reading the comments on here and other websites I have decided to inform Aviva that I will be expecting to take my pension on my 62' birthday this April as per my policy.

Its leaving it late as pensions dont actually mature on a given date. If you want it out by a given date then its best to start a few months earlier to give you a chance to go through the options.

Lekkguy

Better late then never I suppose.

Time2GrowUp

Your_Hero wrote: »

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.

Like Your Hero said it sounds as if the CETV of the GMP is higher than the available fund so they will not allow an IVPP to lose the GMP and secure non GMP benefits now instead of waiting until 65.

I work for an annuity provider and deal with cases such as these all the time (I work in a team dealing with GMP and regularly get Aviva policies such as these move to ourselves). The only options you really have are as follows:

1. Sit tight until the fund exceeds the CETV of the GMP thus allowing a lot more flexibility - this could never happen though depending in the shortfall
2. Sit tight until you can draw the pension from Aviva, they are obliged to pay it from 65 (although you can defer) although you can draw it early if the fund is sufficient to cover the CETV of the GMP as well as the added amount to cover the early retirement option of drawing benefits early
3. Explore an Open market option whereby another provider may be able to cover the GMP now - this is what we see a lot of.

The reason option 3 is a possibility is the CETV Aviva will use is based in standard heathy assumptions/annuity rates. However. as you advised you have ill health a specialist annuity provider who use medical information to offer enhanced terms could potentially provide the GMP benefits for less money. If they can cover the same minimum GMP that is required from age 65 as well as the early retirement until then you could move the fund to them and draw the benefits now. If anything is left over you can then either take it as tax free cash from Aviva or use it to buy extra non-GMP income.

If the shortfall is substantial it may be a non-starter, let's say the fund is £50k and Aviva calculate the GMP CETV at £100k, you won't be able to half the cost even by factoring in bad health, but if the difference is not huge I would suggest seeking indepenant advice to look at the possibility of securing the GMP under the open market with a medically underwritten annuity provider.

Good luck

dunstonh

1. Sit tight until the fund exceeds the CETV of the GMP thus allowing a lot more flexibility - this could never happen though depending in the shortfall
2. Sit tight until you can draw the pension from Aviva, they are obliged to pay it from 65 (although you can defer) although you can draw it early if the fund is sufficient to cover the CETV of the GMP as well as the added amount to cover the early retirement option of drawing benefits early
3. Explore an Open market option whereby another provider may be able to cover the GMP now - this is what we see a lot of.

There is also a 4th option. Transfer to another pension (such as a personal pension) and give up the GMP.

towag

persistancepaysoff wrote: »

Just a point of correction. The route of my complaint was:
Aviva - then Pension Advisory Service - Then Pensions Ombudsman.

I saw my complaint as an administration issue not selling. I never have lodged a complaint with the Financial Ombudsman for this reason and would not recommend this route even now. The fact that the Pension Ombudsman made his ruling in my case may mean that others with the same issues need not go through his office again for the same ruling. This does however rely on Aviva respecting and applying his ruling in similar cases themselves. Is this likely to happen????

In my case not yet, lets hope I don't have to, but I am now more optimistic thanks to you sir, my hat goes off to you!!...
Just to let others know if they don't already, Mr Harris has helped me a great deal by allowing me to see his policy schedule and compare it to mine. In both cases there is no mention or statement that infers that Aviva can opt out of paying the policy at or after the benefit date or before SPA or 65.
Take the time to properly read the determination by the POS and it soon becomes clear that this is indeed the case, so I would hazard a good guess that anyone with one of these policies (pre mid 90's?) has more or less the same in policy wording... It only takes one to get the ball rolling...

Lekkguy

Have had a reply from Aviva,they have acknowledged my complaint and have assigned a case handler to look at it and will report back to me in time.lets see.

towag

Lekkguy wrote: »

Have had a reply from Aviva,they have acknowledged my complaint and have assigned a case handler to look at it and will report back to me in time.lets see.

Hello Leckkguy,
It's the first one that has come back this politely...:cool: It also had an email access to!! Maybe it's the new Aviva revamped more polite reply which has been somewhat lacking in the past. They had a more "Not obliged, go away, stop bothering us, insufficient funds kind of attitude...
The only trouble is, will they contact us within the 8 weeks stated in their acknowledgement?
I personally feel its a ridiculous time to wait now we have the tech we do...
Delaying tactics, so you get fed up and give in?
I'll give it 2 weeks and if I haven't heard from them.... They will from me...
However it will be interesting to see the outcome....
I'm sure that the more fellow Aviva Section 32's policy holders complain the better.... There must be thousands surely?....Start up a campaign to force Aviva's hand maybe.... Who knows..?