Section 32 Buy Out with GMP

Glyndav

A question for any pensions experts our there.

Some time ago I transfered a small pension from a previous employer into a a Buy Out plan, Looking at the plan schedule it states that the GMP is '£295.88 increased by 8,5% per annum compound for each complete tax year falling betwee 10/05/1985 and the Annuitant's 65th birthday or, if earlier, the date of his death.'

Bearing in mind that I will be 65 at the end of May 2022 that is 37 years worth of compound interest which, putting through a compound interest calculator, results in £6053.

Does this really mean that I will be paid an annuity of £6053 per year as a bare minimum, whatever the valuation of the buy out fund, when I reach 65?

Thanks

xylophone

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

https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

mgdavid

Glyndav wrote: »

A question for any pensions experts our there.

Some time ago I transferred a small pension from a previous employer into a a Buy Out plan,......

when exactly did you do this?
1985?
or some date since then?

Glyndav

The Buy out took place in 1992 but the period of employment it related to was June 1978 to May 1985.

xylophone

June 1978 to May 1985.

Pre 88 GMP.

Read first link re S32 policies and second re GMP in deferment and in payment.

See second link above concerning GMP in payment and GMP in deferment.

You can check with your insurer.

Val_s_5

Hi, I have received pension forecasts for my previous company scheme, but I am now being told they can only be provided 6 months before the date I am planning to retire. This is a problem as if I don't have an idea of what my pension will be, it is difficult to plan when to take it. Is there a way to get a forecast for Nov 2018 when I plan to retire? Also GMP is a problem. I have been reading the thread and understand what it is, but I can not see a GMP value on my pension statements
How can I find out what the value of my pension needs to be to be over the GMP amount?

Val_s_5

I don't think it is a S32 scheme. I was with Lloyds Banking group, defined benefit scheme. I has done a state pension enquire, it is saying I will get the full statement (I am 54 now) if I contribute NI for the next 7 years, which I didn't expect.


I will contact the scheme for the GMP


Thanks

xylophone

I don't think it is a S32 scheme.

It isn't! (I deleted my previous because it was addressed to the original poster with the S32) - what made you tag your question on to a S32 thread?

With regard to your deferred DB scheme with Lloyds Bank, when did you work for them?

If between 1978 and 1997 then your statement of deferred benefits on leaving should show pre 88 GMP, post 88 GMP and the excess.

If you have a GMP, how is it being revalued in deferment?

How is the excess revalued in deferment?

What is scheme pension age?

Are you male or female?

Do you have a scheme booklet?

With regard to your state pension, I am assuming that it shows that your "starting amount" is less than £155.65 (presumably by reason of a deduction to reflect your contracted out period) but that a certain number of NI contributions (paid or credited) going forward will enable you to reach the full amount.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf