Section 32 problems gmp and aviva

waterstar

xylophone wrote: »

Even had you stayed in your employer's scheme, once you had reached GMP age, there would have been no obligation to index link your pre 88 GMP nor your post 88 GMP above 3%.

Has Lekkguy stated in any of his posts if he has pre 88 GMP or post 88 GMP?

towag

waterstar wrote: »

Has Lekkguy stated in any of his posts if he has pre 88 GMP or post 88 GMP?

He has stated that his EPR is at 3%
Mine is at 5% so would be in between pre 88 and post 88
This might help....
http://www.aviva-for-advisers.co.uk/adviser/site/public/tech-centre/tech-article-detail/section-32-arrangements-gmps-and-transferring
Further down the page.....

WBCPB

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????

What did the PAS have to say regarding your complaint,did they attempt to mediate with Aviva or just refer you to the Ombudsman?
My only dealings with them via a webchat were not very good,the 1st reply from my adviser said: "There may be long silences between any replies as i am multi-chatting to other customers-bear with me." :rotfl:

Regards

Lekkguy

My pension is pre 1988,even my Merchant Navy pension states from age 65 any GMP earned up to 6/4/88 will not be increased by them,so going by that the 3% EPR in my Aviva schedule does not apply to me ?.

greenglide

Is the 3% EPR not the rate that the excess over the GMP would increase?

In this case there is no excess now?

towag

Lekkguy wrote: »

My pension is pre 1988,even my Merchant Navy pension states from age 65 any GMP earned up to 6/4/88 will not be increased by them,so going by that the 3% EPR in my Aviva schedule does not apply to me ?.

The GMP must also increase in payment, part from age 60/65 part from State pension age, in line with inflation. The cost of this inflation proofing will be met by the State, the scheme or a combination of the two, depending on when the GMP accrued.
http://www.aviva-for-advisers.co.uk/adviser/site/public/tech-centre/tech-article-detail/section-32-arrangements-gmps-and-transferring

Pre 1988 ..... The State
(If they pay it?) Does anyone know how they do, and if they do, now the new state pension has come into force?
Post 1988...... The scheme must meet up to the first 3% per annum, and the State will meet any excess above 3%
Ditto as above?

Pint?

xylophone

The new state pension has no mechanism for index linking pre or post 88 GMP.

The scheme has an obligation to index link post 88 GMP up to 3%.

towag

xylophone wrote: »

The new state pension has no mechanism for index linking pre or post 88 GMP.

The scheme has an obligation to index link post 88 GMP up to 3%.

So in effect "the scheme" or anyone with an NU S32 pre 1988 will not get SFA on the GMP from SPA...
Bearing in mind that anyone "contracted out" before '88 and transferred into these NU S32 policies will get a "contracted out" reduced new state pension.... Sounds like a double hit on anyone pre '88
Correct?

xylophone

https://www.whatdotheyknow.com/request/264444/response/651655/attach/4/AP%20and%20CoD%20info%20sheet%20for%20NAO%2024%20February%202.pdf

xylophone

Once you have read the weasel words in the above ( about how the state did not pay increases on GMP), this is typical of how scheme literature put it.....

http://www.lgps.org.uk/lge/core/page.do?pageId=101544


"Your pension may comprise two elements: Guaranteed Minimum Pension (GMP) and pension in excess of GMP.

"Any GMP earned before 6 April 1988 is usually increased by the State each April with the increase being paid with your State basic pension.

Any GMP earned after 6 April 1988 is usually increased by the LGPS up to 3% each year with any remaining increase being paid by the State together with your State basic pension."