Aegon Section 32 GMP problem

xylophone

LR was certainly an available option (see links in 7 and 9 above) but in his original post, the OP stated

The policy schedule when issued included reserved contributions for a GMP of £752.44 revalued to state pension age of £6,275.44. The rate of revaluation was 8.5%

Narfie

The policy appears quite clear and unambiguous however before I contact Aegon I wanted to understand if there was any reason they could reduce the stated GMP
I have received my state pension details and it does refer to the periods I was contracted out for both this and a subsequent pension. The amount I would have received from the state had I not been contracted out is declared although it is less than the actual GMP however I assume this is irrelevant

xylophone

The policy appears quite clear and unambiguous however before I contact Aegon I wanted to understand if there was any reason they could reduce the stated GMP[

You need to confirm that the GMP at leaving was correct and that the method of revaluation in deferment chosen was fixed rate - see links above.

The amount I would have received from the state had I not been contracted out is declared although it is less than the actual GMP however I assume this is irrelevant

https://forums.moneysavingexpert.com/discussion/4532605

See post 12

Narfie

Having spoken to Aegon they say that HMRC previously supplied incorrect information however I cannot see why this would be

xylophone

HMRC previously supplied incorrect information

In what respect?

With regard to errors concerning COD see post 21 onwards https://forums.moneysavingexpert.com/discussion/4532605

Narfie

I have now had a reply from Aegon who say that because the policy commenced after November 1996 the conditions state that any shortfall in providing the GMP must be met by the reference test scheme and non reserved unit funds
However as this policy was set up under a Section 32 buyout and the original policy was pre 1996 should not the full GMP be paid?

PensionTech

For anyone thinking LR might be a factor, I can't see that it would be - LR wouldn't be 5%, it would be S148 capped to 5%, which would be even lower, and it would be really hard for anyone to mistake LR for FR (easier to mistake S148 for LR).

Non-jargon: I don't think this 5% comes into it and it sounds like the 8.5% should still be applied. No idea what they're talking about with the policy T&Cs - little experience in this field so happy for someone else to jump in, but as far as I understand, GMP is GMP and "guaranteed" should mean just that. The only thing I can think of is that you might be trying to retire before GMP age (60 for women, 65 for men) and therefore they wouldn't have to cover GMP until you actually reached that age.

xylophone

the policy commenced after November 1996

However as this policy was set up under a Section 32 buyout and the original policy was pre 1996

Mystified! Are there two policies?

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/nic/cosr-schemes.htm

http://www.pruadviser.co.uk/content/nav/about/26674/pghome/49880/53732/53759/53768/53786/

A different insurer but does the information help at all?

Do you have any other periods of pre 97 contracted out employment?

What is the figure shown for COD on your state pension statement?

xylophone

http://www.ftadviser.com/2011/10/25/pensions/aegon-covers-m-s-buyout-shortfall-id6rZJ1NgIMbdOI5wprGJO/article.html

might be of interest.


https://www.pensions-pmi.org.uk/news-and-publications/pensions-terminology/?character=R&p=2

"REFERENCE SCHEME TEST
The test required in order to [contract out] after 5 April 1997 on a [COSR] basis, that the [benefits] provided by a COSR are at least as good as or better than those which would be provided under the [reference scheme]."

http://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/contract-based-schemes/buyout-policies

You might try a call to the PAS? It might be necessary to refer to the Pensions Ombudsman?

xylophone

The only thing I can think of is that you might be trying to retire before GMP age (60 for women, 65 for men)[/QUOTE

As my retirement date is imminent Aegon have notified me of my options
I have received my state pension details

I was assuming that he had reached his state pension age/GMP age although I suppose that he could be referring to a forecast.