Aviva/Norwich Union Section 32 Buyout policy holders?

towag

Tortoise,
What have they said about the Escalation Percentage Rate that was also in your policy?
Was it 5% or 3% to be paid from 61 or 65 depending on your policy wording? My complaint with the Pension Ombudsman is now being taken on which could mean that I have a case against Aviva not paying the EPR's which are also a very valuable part of these policies.... They are using the same old excuse as before "insufficient funds" so it might be that you will get that to, if the PO finds in the positive with my determination.... If you don't fight for it you won't get it is my motto from now on... I am also very pleased to know that you have now got the pension you were entitled to!! It now remains to be seen whether Aviva will have to pay out a lot more than they anticipated!! Thanks to Tony Harris starting this off as none of us would ever have known!!
It remains to be seen whether or not Avive have changed direction on customer relations, but I do not trust them in the least when it comes down to the nitty gritty.....
Kind regards
Tony Wagstaffe

Silvertabby

it should be noted that we have had several threads recently (and one active one on the go currently) where posters want to transfer out of DB schemes as they think they can do better. Many fear a repeat where people take money out of DB schemes and then years later realise it was the bad thing to do. Despite the vast majority of posters on the threads telling them that it is wrong, they still refuse to accept that and some even turn on the IFAs for telling them that. Damned if you do. Damned if you dont Originally posted by dunstonh

When the pension freedoms were announced, the LGPS was swamped with transfer out requests from current members as well as deferred. I would say that over 90% of these people didn't think that they'd do better with an invested account - they just wanted to transfer their benefits to an 'easy access cash it in now' personal pension. When I received requests from IFAs for transfer valuations, I would ring the IFA to advise that we were a public sector defined benefits scheme, and to ask if they still wanted the cetv. Almost all either said that they didn't want the quote, as there was no way that they would ever recommend a transfer out, or wanted the quote plus a retirement quote so they could point out to their clients what they would be giving up if they transferred out. Clearly, a lot of IFAs refused to 'play ball' as we would get repeat requests for the same member from other IFAs. I think the record was 4. However, this ploy didn't work with the 'pension advice/release/cash now' boys who were only interested in their 'cut' from the transfer value and who probably won't still be around in years to come when the (ex)member realises what they have done.

WBCPB

tortoise84 wrote: »

Out of the blue I received a letter of apology and an admission that the pension could have been paid to me 10 years ago instead of deferring it for 5 years until I was 65. As a result, a lump sum was paid into my bank account - 5 years worth of pension plus interest.
A lovely surprise! I had intended retiring at 60 (my father died aged 66 and I wanted to ensure that I had a few years to enjoy) and because of Aviva's last minute decision to defer my pension, I was forced to take a part time job for 5 years. I didn't know whether to laugh or cry when I received the letter.
:beer:

Really good news for you,what rate of interest did they apply,was it the "8%" i keep reading about on various forums?My complaint against NPI is with the Financial Ombudsman Service at this point in time,they stated they would get back to me in approx. 12 weeks :eek: when they took the complaint on.

Regards

WBCPB

Post deleted

HowardRoberts

Hello. I was contacted by them in November 2016, to say there had been errors in my Section 32 pension. Was due to start 2014 (aged 60) but"due to insufficient funds" put back to 65. They are now proposing to pay me the approx difference, back dated to 2014. Have not seen the money yet, but soon by the looks of it.

In addition to the back payment, I am also in contact with Aviva regarding the clear statement in an update Norwich Union sent to me in Feb 1997 stating that "the GMP will increase by 3% each year starting 1 March 2010". Aviva now inform me that due to insufficient funds, this increase will not be paid.

My Section 32 policy dates from 2/10/1989.

chrisuk1

I also have an 'Aviva/Norwich Union Section 32 policy' that Aviva refused to pay out on my 60th birthday 3 years ago telling me I had to wait until I was 65. I had previously complained to the Financial Ombudsman who ruled in Aviva's favour.

Yesterday I received a letter from Aviva offering me 3 options.
Option 1: A lump payment plus interest covering the money I should have been paid backdated to my 60th birthday. Also a monthly income rising to the GMP when I reach 65. My only annoyance is that I will be taxed on the lump sum. I have been a non-tax payer since I was 60 and if Aviva had paid me my income when it was due I would not have paid tax on it.

Option 2: No lump sum but an enhanced monthly income rising to the GMP when I reach 65.

Option 3: No income whatsoever until I reach 65 and then an enhanced monthly income. No figures given at all for this so I do not know how I can make an informed decision.

This is a simplified version of what Aviva has sent me and I will have to consult an IFA for help.

It states on the covering letter that Aviva have more or less been forced to pay out by the Pension Ombudsman. Thank you Mr Anthony Harris.

WBCPB

chrisuk1 wrote: »

I also have an 'Aviva/Norwich Union Section 32 policy' that Aviva refused to pay out on my 60th birthday 3 years ago telling me I had to wait until I was 65. I had previously complained to the Financial Ombudsman who ruled in Aviva's favour.

Yesterday I received a letter from Aviva offering me 3 options.
Option 1: A lump payment plus interest covering the money I should have been paid backdated to my 60th birthday. Also a monthly income rising to the GMP when I reach 65. My only annoyance is that I will be taxed on the lump sum. I have been a non-tax payer since I was 60 and if Aviva had paid me my income when it was due I would not have paid tax on it.

Option 2: No lump sum but an enhanced monthly income rising to the GMP when I reach 65.

Option 3: No income whatsoever until I reach 65 and then an enhanced monthly income. No figures given at all for this so I do not know how I can make an informed decision.

This is a simplified version of what Aviva has sent me and I will have to consult an IFA for help.

It states on the covering letter that Aviva have more or less been forced to pay out by the Pension Ombudsman. Thank you Mr Anthony Harris.

Good news on the payouts,have a look here:
http://www.legislation.gov.uk/ukpga/1996/8/section/148

There may be something in there that applies to you,good luck!!

Regards

chrisuk1

Thanks for that. I've forwarded the link to the IFA I have appointed.

DMcC94

This is excellent news.
Hopefully providing further evidence that Aviva have changed their approach.

I reach the date when I ought to start receiving my pension from Aviva early next year.

Thus far the majority of posts relate to those who have not received their Aviva Section 32 pension on the policy benefit date and have unfairly been forced to wait until 65, or, whether the GMP will be increased in line with inflation.......all good questions...

As further evidence of a changed approach, my question is (since The Ombudsmans finding in favour of Mr Harris) if anyone has now actually started to receive a pension from the stated Benefit date (even if it is a reduced GMP rising to the full GMP due at age 65) without having to take up cudgels with Aviva.

persistancepaysoff

To CHRISUK1
Yesterday I received a letter from Aviva offering me 3 options.
Option 1: A lump payment plus interest covering the money I should have been paid backdated to my 60th birthday. Also a monthly income rising to the GMP when I reach 65. My only annoyance is that I will be taxed on the lump sum. I have been a non-tax payer since I was 60 and if Aviva had paid me my income when it was due I would not have paid tax on it.

If you were a non tax payer then you should be able to apportion the arrears of your pension lump sum to the actual years you should have received them and apply for a tax rebate accordingly. Aviva will have the amounts of arrears for each tax year if you ask them for this information.

From Anthony Harris (AKA Persistancepaysoff)