Gmp

catlover1970

Hi, just wondered if anyone could help please, my hubby has a very small pension pot from an old employer and it is his only pension but because I still work and am Alot younger so have a long time left to work and have my own good pension, we are wanting to cash his pension in so we can enjoy the few years of good health my hubby has left

His pension company tells us because it is a gmp pension he has to wait until he is 65 to claim it (3yrs), is this right or can we do anything to move it and take it as a whole lump sum,.

Thanks

dunstonh

is this right

Probably. It can depend on the type of pension but 65 is normal for male. It may be possible to commence it earlier by transferring out and giving up the GMP. However, that may be a very expensive thing to do as the guarantee may be worth a lot more than the pension itself.

If he wants to transfer it and its over £30,000 then it will need an adviser to check to see if it is suitable for transfer.

catlover1970

Thank you, if we get an advisor to have a look, will they be able to tell us the difference between changing and taking now or just leaving it be for a few more years

xylophone

Hi, just wondered if anyone could help please, my hubby has a very small pension pot from an old employer

Do you mean that your husband is a deferred pensioner of this scheme or that his benefits were transferred to a S32 policy with an insurance company?

Is the GMP pre/post 1988 or both?

Has your husband applied for a new state pension statement?

https://www.gov.uk/state-pension-statement

catlover1970

Hi, he hasn't paid into the pension for 30 years, no we haven't yet, he is 61 can we apply for that now?

xylophone

Your husband can apply for a statement now as he is over 55.

If your husband left the scheme over 30 years ago, then all his GMP is pre 1988.

Is he a deferred pensioner of the Scheme or was his pension transferred out to a S32 policy with an insurance company?

catlover1970

Hi

He is a deferred pensioner

Thanks

xylophone

Does his scheme allow taking his pension early on an actuarially reduced basis, or does the "GMP test" prevent this in his case?

See this http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/GMP_Test_Factsheet.pdf

catlover1970

His current scheme said he has to wait until he is 65 but we didn't know if he could transfer to a non GMP scheme and then take a full lump sum

The pot figure they have given us is well under the 30000 limit

xylophone

Do you mean that the cash equivalent transfer value is well under £30,000?

Have you had any indication of how the pension will be split once in payment?

How much would be GMP and how much would be excess over GMP?

It is likely that once in payment, the scheme would not pay any increase /inflation linking on the pre 88 GMP and there will be no inflation linking on this with the new state pension.

How would the pension increase in payment?

The scheme is not unfunded public sector?

https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme

You mention your husband's desire to enjoy a "few years of good health" - is his life expectancy impaired?

catlover1970

We have no idea how it is to be split we do that know much about gmp pensions

It is impaired but not under any immediate threat, just not many more years before housebound if that makes sense