Serps at Aviva

thebullsback

Letter from Prudential Dated 18 June 2014
Further to your recent request for an early retirment quotation .I regret to inform you that currently there are insufficient funds to provide your GMP or any extra retirement benefits immediately .

Your previous pensions benefits held under BEST ( bus super ann ) were contracted out of Serps .They had an obligation to provide you with a yearly pension from age 62 equivalent to what would have been provided had you remained in Serps.

When we accepted the origional transfer value from BEST we accepted the requirement to provide you with at least the value of your GMP payable from age 62. Your GMP is £2,313.48 EACH YEAR AND WE HAVE TO PROVIDE THAT.

The value of your fund inc.final bounus as of 18 June 2014 is £32,203.47 and the current cost of providing your GMP is £53,474.41.Therefore early retirement is not possible.

I understand this to mean that - I cant retire now BUT when Im 62 the Pru. Have to honour my GMP.

neilvw

This is an education! GMP payable at 62 agreed at outset in a S32 (and promised in the original scheme) is a new one on me.

xylophone

Bond 32 was bought in 1988 out of my Bus Employers Superannuation Trust Pension .

Perhaps you should have hung in there until they divvied up the spoils...:)

http://www.professionalpensions.com/global-pensions/news/1464586/court-bus-scheme-battle

With regard to GMP age, it was (and remains) 65 for a male.

Presumably Normal Retirement Age in BEST was 62 and members would have expected to draw their pension (which would have included the GMP) at that age.

It would seem that the Pru have accepted the liability to pay your pension (including GMP) at age 62 and presumably will index the GMP and excess until you are 65, after which there will be no obligation to index the GMP portion as it is all pre 88.

Have the Pru clarified revaluation pre age 65 and indexation post 65 in the policy documentation?

neilvw

xylophone wrote: »

Perhaps you should have hung in there until they divvied up the spoils...:)

http://www.professionalpensions.com/global-pensions/news/1464586/court-bus-scheme-battle

The OP apparently did share in the spoils:

Eligible beneficiaries are former Members of BEST or NBPF who had benefits in either scheme at any time on or after 30 April 1986 (including any who transferred their benefits out of BEST or NBPF on or after 30 April 1986)

https://www.thegazette.co.uk/notice/L-56731-391

I imagine the Pru would have applied the surplus without a claim by each individual member being necessary?

thebullsback

12 April 1989 -Transfer of funds from BEST into Prudential Bond 32 =£2806.97
Allocation
Contract charge =£50.00
Guaranteed Basis = £110.28
Cash Accumulation =£2646.69

After charges £2430.00

The above is provisionally pending from yourselves receipt of DHSS notification of GMP entitlement RD654 or equivalent.
If GMP proves greater than that which we have already notified then the Prudential will either make appropriate adjustment to the allocation (with consequent recalculation of sum initially credited to members cash accumulation fund)or if that should not be possible return the original sum of money to the trustees in can cancellation of the contract.

xylophone

The OP apparently did share in the spoils:

"Better and better" as my old uncle would say.....:rotfl:

So to sum up the Op's situation:-

He has a DB NHS pension which by Scheme Pension Age (60 in his section) will have over 25 years of contributions. He may continue to work post Scheme Pension Age?

http://www.nhsbsa.nhs.uk/Pensions/4213.aspx

He will be able to add to his Foundation Amount for new state pension after contracting out ends for NHS Scheme at the end of the current tax year.

His State Pension Age will be 66/67?

He has a S32 with the Pru which will pay him a pension at age 62 - he should check how/if the pension increases in payment.

He has a DB replacement policy with Aviva, terms currently under investigation but with a transfer value in excess of £17,000.

He has a former protected rights policy with Aviva currently valued at
around £12,000.

And he has the "tailor made GMP AVC" worth around £600 - this really is a new one on me - is it revaluing or not and if not why not?

thebullsback

In April 2000 I had a redress payment of £7,318 added to my Bond 32.
Also in the around 2005/6 or 7 I had a lump sum payment by choice from " the BEST pot" other options were available but I took the money ( About £5000)

xylophone

I took the money ( About £5000)

Did you spend it on riotous living - (cigarettes 'n whisky 'n wild, wild wimmin...)?:rotfl:

thebullsback

xylophone wrote: »

Did you spend it on riotous living - (cigarettes 'n whisky 'n wild, wild wimmin...)?:rotfl:

I did indeed ,after been a good boy for years I had my mid life crises and blew it.
But back in shackles now so hey ho.:A

neilvw

xylophone wrote: »

His State Pension Age will be 66/67?

Age 66 on 5 February 2025.
https://www.gov.uk/calculate-state-pension/y/age/male/1959-02-05