CIS Option 32 NRD

ferustrated

Hi All

I am 56 and female and believed that I could start drawing on my pension when I reach 60 as that was the retirement date for women in my works salary scheme .

I transferred the benefits to a Option 32 CIS policy Start Date 31/10/93 (now Royal London)
My most recent statement gives the following figures:-
Basic Pension pa £8089.45
Total annual bonus (from previous years) £2597.95
Total guaranteed pension pa £10687.40

When I look on the statement for confirmation of my retirement date it just refers to 'Normal Retirement Date' as shown in the policy document.
So, just to make sure, I phone and ask. To my horror, they tell me that it is when I am 65!

I'm sure that can't be right but despite searching high and low I cannot find the original policy.I have however found previous Transfer Valuations.
The most recent is at 23/5/13 for £97442.27
GMP at date of leaving service £804.96pa
Pre 4/88 £465.92pa
Post 4/88 £339.04pa
rate of revaluation 7.5%
GMP re-valued to SPA £5276.96

How can NRD be 65? when original age was 60 and current SPA for me is 66?
Also the attached information states that GMP must be paid for women at 60 as per regulations.

Confused and worried
Hope someone can help x

dunstonh

How can NRD be 65?

Have Royal London said you cannot commence the pension until 65? Just because a pension scheme age says one thing does not mean you are stuck with that age.

Current SPA has nothing to do with it.

ferustrated

I asked what my normal retirement date (NRD) was and they said when I'm 65 as it was what I chose at the start date.

I queried this and he has passed it higher. I am to expect a reply in 10 working days

They did not volunteer any info on when I could commence.

Perhaps I did not ask the right questions?

xylophone

The GMP age for women is still 60. It no longer aligns with State Pension Age.

You have a S32 policy?

http://www.aviva-for-advisers.co.uk/site/public/tech-centre/tech-article-detail/section-32-arrangements-gmps-and-transferring

http://www.financialadvice.net/s32_buy_out_plan/zone/1288

ferustrated

interesting links, thanks

Yes it is S32

Seems to say that they must pay GMP at 60 but I still dont understand about the 'Total guaranteed Pension'
Is this a 'GAR'?

Is there something I'm missing?

dunstonh

I asked what my normal retirement date (NRD) was and they said when I'm 65 as it was what I chose at the start date.

Which is right then. However, it doesnt mean you have to wait to 65.

They did not volunteer any info on when I could commence.

They wont. The phone centre people will answer questions with factual information and not offer opinion or answers to things not asked. They have to avoid crossing the line from answering questions as asked to offering advice.

xylophone

Option 32 CIS policy Start Date 31/10/93 (now Royal London)

I have however found previous Transfer Valuations.
The most recent is at 23/5/13 for £97442.27

http://www.pensionsandannuities.co.uk/GMPInsurers.htm

"The CIS are currently (February 2014), giving customers what they call "fair transfer values". This is a transfer value that they claim reflects the mathematical cost/value of the GMP. Therefore it is then it is possible to transfer this away. The "fair transfer values" we have seen have been much higher than the actual fund values. But in our view the transfer values have been far lower than the value of the benefits given up, and generally the benefits are best left with the CIS."

I saw the comment above which may be of interest.

http://www.royallondongroup.co.uk/Documents/Coop/pdf/CIS_ISB_Individual_Option_32_Pension.pdf may be worth a look.

ferustrated

I too have seen comments such as the above and Royal London sent me a copy of their leaflet so I am pretty certain it is best left where it is.

What I don't understand is WHEN I can start receiving.

Total annual bonus (from previous years) £2597.95
Total guaranteed pension pa £10687.40


I was certain that it was 60 but now they tell me NRD is 65 my retirement planning is in question.

Is it possible that the guaranteed payment may be paid when I am 60?

ferustrated

I didnt choose 65

this is what they are now saying

dunstonh

What I don't understand is WHEN I can start receiving.

55 if you dont mind losing the GMP. 60 if you wish to retain the GMP.

I was certain that it was 60 but now they tell me NRD is 65 my retirement planning is in question.

it really doesnt matter. Its just an age used for the pension statement projection.

ferustrated

If I retire at 60 are they likely to reduce the amount?

If so any idea what sort of % is usual?