Section 32 problems gmp and aviva

towag

Have you written to or contacted Aviva to see what they will offer you on your policy, other than the GMP at 65? It seems to me that no matter how big your pot is, its the overall value of the fund as a whole that will determine whether or not they will pay out at your 60th. The wording you have used sounds much the same as mine and Mr Anthony Harris's policy. Their free phone number is 0800 2600 370

Lekkguy

UPDATE ALERT!!!!,
Just had a phone call from Aviva.My GMP is £7655 and they have now said that-
1. From my 62' birthday (a week tomorrow) they will pay Me £5993 a year.
2. From my 63' birthday they will pay £6503 a year.
3.From my 64' birthday they will pay £7055 a year
4. From my 65' birthday they will pay the GMP of £7655.
Looks like this will apply to everyone in the same situation because of the Ombudsman ruling.
I think its a fair compromise,anyone else heard anything?.

towag

Lekkguy wrote: »

UPDATE ALERT!!!!,
Just had a phone call from Aviva.My GMP is £7655 and they have now said that-
1. From my 62' birthday (a week tomorrow) they will pay Me £5993 a year.
2. From my 63' birthday they will pay £6503 a year.
3.From my 64' birthday they will pay £7055 a year
4. From my 65' birthday they will pay the GMP of £7655.
Looks like this will apply to everyone in the same situation because of the Ombudsman ruling.
I think its a fair compromise,anyone else heard anything?.

Yes, but if your policy has an ESCALATION PERCENTAGE RATE in your SECOND SCHEDULE under DEFINITIONS as mine does, then Aviva might be pulling a fast one which means you would dip out of an EPR that will cost you dearly in the long run as its compounded annually... I had a phone call from Aviva saying exactly the same, but they have refused the EPR which I do not think is right... If you haven't then you have nothing to worry about, but having the experience I've had with Aviva so far... Anthony Harris's determination has obviously set a precedence, but that doesn't mean that its right as they will do everything they can to misdirect you....And once you've signed....Ya cant go back....

Lekkguy

My schedule says an EPR OF 3% compound,will that be payable from 65?.

towag

I won't be accepting or signing anything from Aviva until all the agreements originally and contractually made by Norwich Union are properly fulfilled as per my policy... In my case and Anthony Harris's they cited policy condition 7 as no obligation to pay a pension at the benefit date if the fund is in their interpretation "insufficient". This is regardless of what you have in your fund as its relevant in proportion to your initial transfer amount... I suspect they use this cop out no matter what size your fund actually is because what they would have to pay out is also relevant to those policies....So they will use the same tactic of "insufficient funds" by agreeing to pay the GMP amount from age 60 increasing annually till SPA GMP, but will not pay out any ESCALATION PERCENTAGE RATE (if you have one) from your GMP at SPA onward. This is all wrong because what Aviva fail to realise is, or do not care about, is by being contracted out for any number of years with their original pension provider and transferring to their NU S32 pension provision, either through redundancy or other reasons, means those same policy holders will get a reduced State Pension (SP), the shortfall in SP was meant to be more than compensated and safeguarded for by these pension policies as in any other government or other occupational pension that was contracted out in which policy holders paid a lower NI contribution rate. They were also encouraged....
Aviva were wrong in doing what they did in the first place and they are wrong again by refusing to pay out any EPR
In other words (As I would hazard a good guess).... Another Aviva cop out of "insufficient funds" regardless of how the policy is written......Now to be further challenged, probably via the POS ......

Aviva are contractually obliged, ethically and morally, to pay out the policy as is written and stated.
As Aviva, a worldwide giant with assets greater than the New Zealand economy can easily afford to do this...

https://www.thisismoney.co.uk/money/markets/article-3514805/IN-MONEY-Aviva-chief-executive-Mark-Wilson-handed-3-1m-pay-rise.html?login#readerCommentsCommand-message-field

The With Profit Guaranteed NU Pension Fund now worth GBP £39,000,000,000 as at 31-Mar-2016 (source FE Trustnet).
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=NQF50&univ=P

They can easily afford to pay out ALL their NU S32 policy holders

towag

Lekkguy wrote: »

My schedule says an EPR OF 3% compound,will that be payable from 65?.

What do you think?
Have they told you that they will pay it?

Put it this way 7655 quid 3% compounded annually will in ten years be worth £10,287.68 ....

See what I mean...?

Lekkguy

towag wrote: »

What do you think?
Have they told you that they will pay it?

If it's in the policy they have to surely?,I will wait for the letter from Aviva first and see what they say.

waterstar

Lekkguy wrote: »

UPDATE ALERT!!!!,
Just had a phone call from Aviva.My GMP is £7655 and they have now said that-
1. From my 62' birthday (a week tomorrow) they will pay Me £5993 a year.
2. From my 63' birthday they will pay £6503 a year.
3.From my 64' birthday they will pay £7055 a year
4. From my 65' birthday they will pay the GMP of £7655.
Looks like this will apply to everyone in the same situation because of the Ombudsman ruling.
I think its a fair compromise,anyone else heard anything?.

It appears that Aviva are discounting the GMP to make an offer at age 62 so that it grows at 8.5% per annum through to your 65th birthday.

I would hazard a guess that you left employment pre 6 April 1988 in respect of which the GMP revaluation rate is 8.5% per annum.

see

https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

Aviva's thought process appears to be that there is a justification in doing that? My understanding is that this is not what the Ombudsman awarded to Mr Harris, he was awarded GMP from age 60.

towag

waterstar wrote: »

It appears that Aviva are discounting the GMP to make an offer at age 62 so that it grows at 8.5% per annum through to your 65th birthday.

I would hazard a guess that you left employment pre 6 April 1988 in respect of which the GMP revaluation rate is 8.5% per annum.

see

https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

Aviva's thought process appears to be that there is a justification in doing that? My understanding is that this is not what the Ombudsman awarded to Mr Harris, he was awarded GMP from age 60.

OH YES!! Its called misdirection.... You are correct in that they pay an 8.5% compound up to SPA GMP, then its EPR onwards....

towag

Lekkguy wrote: »

If it's in the policy they have to surely?,I will wait for the letter from Aviva first and see what they say.

I bet you a pint that they will not be paying it....

Sorry Lekkguy, but like I said before you HAVE to read the god damn policy!!