Trivial/Commutation

castle96

Hi,
Q. 1 I have 3 small pots
£28600, £2444 and £287.
As these total > £30000 total (this figure IS ? correct/cast in stone), I can only take the two small ones totally in cash. True ?
(How would the £28600 one know about the other two if I said nothing ?)

Q. 2. The £28600 pot was a S32 buy out.
There is a pre 4/88 (none post 4/88), GMP of £773 for me and £386 for the ex-wife.
Friends Life insist I have to buy this spouces pension. Suppose she were already dead - still have to buy it ?
Suppose she dies before me - where does the GMP/% of fund that was set aside for her, go to them. Seems a total waste of MY money (and is annoying). I would give them no information regarding her, and she would never receive this pension (nor need it).

thanks

dunstonh

As these total > £30000 total (this figure IS ? correct/cast in stone), I can only take the two small ones totally in cash. True ?

Fales.

Trivial commutation really only applies to defined benefit schemes (and a tiny number of money purchase schemes). Pension freedom options effectively replaced triviality with money purchase schemes.

As you say they are pots, this would suggest they are money purchase as defined benefit schemes do not have pots.

Q. 2. The £28600 pot was a S32 buy out.
There is a pre 4/88 (none post 4/88), of £773 for me and £386 for the ex-wife.
Friends Life insist I have to buy this spouces pension. Suppose she were already dead - still have to buy it ?

Provision of a spouse pension is a requirement under GMP. Spouse provision doesnt actually make much difference nowadays. Especially if if the spouse is older where it can make no difference. Also, if the spouse has health conditions, they can benefit the pricing on your plan.

Suppose she dies before me - where does the GMP/% of fund that was set aside for her, go to them. Seems a total was on MY money (and is annoying). I would give them no information regarding her, and she would never receive this pension (nor need it).

It is factored into the mortality gain increases that you get with annuities.

Remember that you can give up the GMP if single life is more appropriate and is better financially for you.

castle96

Many thanks for quick/reply.

I only aim to get max. benefits for myself, hence would go for Single Life. Ex wife is not 'relevant'. Friends Life keep telling me that my pot HAS TO provide a spouces pension

"Remember that you can give up the GMP if single life is more appropriate and is better financially for you."

Would 'giving' up the GMP (never understood what is was), increase the amount they are quoting as annuity/TFC. Surely the pot is the pot ?
If it made the pot bigger great, but what am I giving up ?
"the pre 88 GMP will not increase in course of payment"

xylophone

Have you explored the possibility of transfer out of the S32 pension?

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

http://www.pensionsandannuities.co.uk/cash-in-a-personal-pension.htm



It may be possible to transfer all three into (say) a SIPP and access as best suits you?

A provider has no obligation to pay inflation linked increases on pre 88 GMP in payment.

castle96

Again, thanks
Hargreaves Lansdown did look at his a couple of years ago.
"It appears that the TFC rate of 33% is better than that available on the open market"
"......I cannot see that the in house offer can be bettered via the open market"
I did give full information.

CAN I better the quotes from F/Life by TELLING them I wish to give up the GMP element. What I want is max. SLP for me. Wife not relevant