What is it and what can I do with it ???

atush

You can email if you like.

But if you want a response im time for complaint, you have to go snail mail.

xylophone

https://forums.moneysavingexpert.com/discussion/5188100

Another Aviva DB replacement policy.....

xylophone

Thinking about it, all three of the cases where one of these "DB Replacement Policies" are involved have also involved insolvencies.

S32 ( which could have revalued GMP etc) although available at the time, was not offered, presumably because of the insolvency/scheme deficit etc.

I am now wondering whether these policies were a kind of halfway house, where the Trustees got the best terms they could in the circumstances.....

thebullsback

Started a new post (Serps at Aviva)about my other Aviva policy so as not to confuse this one

neilvw

thebullsback wrote: »

Original Norwich Union Commencement date 7 March 1999.
Benefits on Retirement if you take your benefits at normal retirement date ( I am 56 now)
I have found the original Documentation from the then Norwich union.
Normal Retirement age 65 (5/2/2024)
Benefits on Retirement at normal age.
£693.72 a year .This includes Pension other than your guaranteed minimum Pension of £351.04 a year .Your guaranteed minimum Pension of £342.68 a year which was earned after 5April 1988.
Payable monthly from 1 March 2024 and for at least 5 year and continuing for the rest of your life.
Your Pension other than your GMP of £351.04 will increase by 5.00% compound and your GMP of £ 342.68 will increase by 3.00% compound.
There is also a guaranteed spouses Pension on my death after normal retirement of £346.92 per year.

I wrote to Aviva who now run the Policy at the beginning of April this year to ask what I could do with this fund if I wanted to "Retire" now and received this back...
This is a replacement policy from a terminated Defined Benefit Occupational Pension Scheme.The benefits were bought out of the scheme fund when the scheme wound up .Therefore there is no fund value and no annuity rates apply. The defined benefits are fully secured with Aviva on a non-profit basis and are not held within any unitized funds.
Therefore you cannot choose or switch funds and there are no charges that apply.
The current transfer figure is £17,237.37 of which £7,586.33 is the value of post-1988GMP.We cannot guarantee these values ,they are for illustration purposes only.
There was also these options open to me if Retiring now - Option one Yearly Pension of £113.64
Option two- Cash lump sum of £2153.48 + yearly pension of £65.28
Option three- cash sum now £2153.48 + £4075.22 to buy income from another insurance company .
Option four - No lump sum + £6228.70 to buy income from another insurance company .
Additional bit of info on last page says -The open market option value of your GMP is -Basic open market option £10322.77
Total open market option £10332.77.
What this all means I do not have a clue .Help

Quoting this again. Thoughts in a moment

neilvw

thebullsback wrote: »

One other interesting thing that happened was that I have had a second " Retirement Illustration " sent out too me that this time includes a Triviality Option that the original Illustration did NOT include.

thebullsback, can you give the details of the triviality option offered to you?

thebullsback

neilvw wrote: »

thebullsback, can you give the details of the triviality option offered to you?

Option 1= no tax free cash -yearly pension of £117.24 +5% per year spouse pension £58.68

Option 2=£2,175.34 tax free cash-£68.52 yearly pension +5% year spouse £58.68

Option 3=£2,175.34 tax free £4,270.34 to buy income from another insurance company.

Option 4= no tax free sum -£6,446.13 to buy from ANOTHER insurance company

Option 5= £2,175.34 tax free-"11,707.75 as lump sum after tax on grounds of Triviality ( a tax charge of £2,926.93 is calculated )

Option 5 did NOT appear in the FIRST request for information from Aviva.

neilvw

Aviva wouldn't be aware of this but your total pension benefits (DB + DC) take you way over the limit for triviality. The only way of cashing in this replacement DB scheme would be to transfer it out to a DC scheme and then use the new freedoms.

But obviously you will want to await clarification on the lack of increases in deferment - which hugely affects the transfer value, as well as its intrinsic value as a future pension - before considering this further.

thebullsback

I will wait until I hear from Aviva . Thank you for your endeavors on my behalf

thebullsback

Hi Everyone ,Today I received the following from Aviva.

The values quoted on replacement policy represent the total pension available at your normal retirement date (5th February 2024).
The benefits were bought out of the scheme fund when the scheme wound up.Therefore there is no fund value.

The pension amount quoted on option number Two of the recent quotation issued had a reduced annuity rate than option number One because there is a different calculation basis.

Since there is a Tax free cash (TFC) that is being paid to you the annuity rate changed as there is also a Spouses pension attached to this policy.
If you have any more questions ..........

Anyone have any thoughts on this please ??
Thank You for reading.