Section 32 problems gmp and aviva

Lekkguy

Was surprised how quickly they replied to my letter to be honest.

towag

Lekkguy wrote: »

Was surprised how quickly they replied to my letter to be honest.

Don't let that fool you.... When I complained last year without the info that has come to light now, it was nearly two months until I got their last rebuttal. Apparently the same that everyone gets it seems...
I get the impression that Aviva is going to fight every section 32 poilcy request that comes to their notice, so don't give in... I did, but now I realise I have nothing to lose in persisting, and ready to go the POS route if I get another rebuttal...
As a matter of interest I noticed you said your benefit retirement date is at 62. Is that written into your 1st policy schedule?

towag

Tractorjockey wrote: »

I'm in the same position with Equitable Life, I presume, having read the original contract, that clearly states my retirement age as 60, I could also pursue this with the Ombudsman. Any thoughts ?

Very much depends on how your policy with EL is written up... I compared mine with Mr Anthony Harris's to make sure that they were similar. In mine and his there is nothing that implies that Aviva can refuse to pay out at 60, irrespective of how well or badly their "with profits" fund performed.
Take the time to read and reread your policy very carefully and read all your annual illustrations and bonus packs if you received them....

Lekkguy

The policy states 'Normal pension age of scheme giving transfer value:62'.

towag

Lekkguy wrote: »

The policy states 'Normal pension age of scheme giving transfer value:62'.

Hmmm?....Sounds like it could be written differently?
On the 1st page at the top of my policy in the "FIRST SCHEDULE" it gives a "Benefit Date" down below (in my case my 60th birthday) exactly as Tony Harris's is written....
So maybe that was how your original pension, before transfer was worded?...
I think, depending on your original pension provider. it could all be written as per the agreement you had with them... Aviva (or Norwich Union as it was then) take over that responsibility (as far as I'm aware) when you transferred to them...

Lekkguy

In my First Schedule page the Benefit Date is my 62' birthday at the end of this month.

towag

Lekkguy wrote: »

In my First Schedule page the Benefit Date is my 62' birthday at the end of this month.

Then its probably a good bet that your policy is similar.... Does it state anywhere in your policy that Aviva have the right to opt out paying from your benefit date?... If it doesn't then It would seem that you have just a good a chance as me in getting your pension, which for you, if you get it, will be all the better..... Mine was in June 2013...:(

Lekkguy

Fed up of reading the policy time and time again!,and as I said in my letter to Aviva nowhere in the policy does it say they can refuse benefits at 62.Will wait to get a proper response from Aviva and take it from there,I have nothing to lose after all.

towag

Lekkguy wrote: »

Fed up of reading the policy time and time again!,and as I said in my letter to Aviva nowhere in the policy does it say they can refuse benefits at 62.Will wait to get a proper response from Aviva and take it from there,I have nothing to lose after all.

I wish you luck.... Let us all know how you get on...

waterstar

After numerous hours, I think I have managed to read through every posting on MSE, ie this thread and various others, regarding s32 plans and I have also read through the numerous links provided. Many thanks to all those who have contributed over the years to create this compendium of knowledge.

I have an Aviva s32 plan with Benefit Date in the final quarter of 2016 (my 60th birthday), the date of the policy is the second half of 1988. I have tried to think through what my options are and would be grateful for any views on my assessment.

The Aviva s32 is in respect of a transfer out from a DB scheme based on 5 years employment ended December 1987. Guaranteed Minimum Pension is shown as an initail amount with an 8.5% pa compound factor giving a total of £6K, with a 50% widow's benefit. The most recent “anniversary certificate” provided by Aviva (October 2015), gives a Transfer Value £110k, previous Aviva statements have shown “With profits benefit” of £80k and “regular bonus” of £50k and that a final bonus may be payable. A letter in 2015 stated that the with profits fund has an additional surplus and Aviva currently expected to pay an extra final bonus of up to 7.5%.

The Aviva s32 is one element of my overall retirement situation, so i am seeking to assess how to deal with it in the context of my overall retirement situation.

As background, I am currently retired, having received, since earlier in my 50s, a DB scheme relating to another employment period. This scheme has a two-thirds benefit for a spouse on death. This DB pension has more than paid all my day to day living costs in each year since I have drawn it. I have reasonable other investments in ISAs and savings and I have a property that I will in time look to downsize on. I also have the potential, subject to making voluntary NIC contributions, to have approximately £145 pw under the new State Pension rules in 2022. To the best of my knowledge I have no health issues.

I have no spouse and no dependants, with no present anticipation that situation will change and if that situation did change there is the provision of the two-thirds benefit for a spouse under the existing DB scheme that I am receiving.

If I have understood the policy correctly then at the Benefit Date the Capital Sum will be approximately £140k plus any “Final Bonus” (the £140k being With Profits Benefit £80k plus Regular bonuses of £50k with both increased by 7.5%). If I am reading annuity tables correctly (from HL) it appears to me that this may well be adequate to make an open market purchase of a “Age 60, Joint life 50%, level, no guarantee” annuity at the level of the Guaranteed Minimum Pension. Hence I may not fall into the “inadequate funds to take GMP at age 60” debate with Aviva which others have highlighted above.

Turning to the helpful options highlighted by Time2GrowUp and dunstonh in postings #47 and #48 above. It seems to me that

(a) I would want to transfer out of the Aviva scheme:

(i) as I do not wish to purchase the spouse's pension which is a requirement of the s32 scheme.
(ii) as I do not have a present need for the funds or additional pension I believe it would be preferable to leave the funds invested, presumably in a SIPP/personal pension and access the pension funds under the pension freedom rules at a time of my choosing.

(b) My present view is that if I were ever to contemplate purchasing an annuity with the Capital Sum from the fund I would most likely prefer to have an inflation element in the annuity rather than flat rate.


Have I missed anything obvious in my thought process? It is my plan to see an IFA in the near future.