Help please option 32

Trubb

Hi ,
This is my 1st post ..
I'm soon to be the golden age of 60 ..😁 ..
I have a option 32 pension with CIS..which had a transfer value of £1000, in 1992
My GMP ..£ 252.00 per yr ..
Would like to take a lump sum WHEN I'M 60 .
Could anyone help me with with a guide to how much i would receive
Find pensions bit mind boggling 😣
Thanks for any replies

Silvertabby

Are you male or female?

Do you have any other pensions other than the State pension?

The reason I ask is that you can only take a pension as a trivial commutation if:

You are 65 (male) 60 (female)

Have a total pension 'pot' of less than £30K

Otherwise you would have to ask CIS for a CETV.

Can you post a bit more information?

Trubb

Thankyou for your quick reply ..
Yes female ..age 59
No I do not have any more pensions other than state pension
Which I understand I will receive when I'm 66 .
I have full 38ys in my Ni contributions
Hope this is a help

Silvertabby

Then it depends on the current value of your 'pot' and, if it is under £30K, if the scheme allows a one-off payment under trivial commutation rules;

The only way to find out would be to ring or write to them to ask. You may find that you will have to transfer your funds to another scheme in order to access them as a one-off lump sum.

I'm sorry, but there's no way anyone on here could estimate a figure for you, as there are just too many variations.

Hope you get the answer you want.

Trubb

Thankyou ..
Guess I will no more in due time , when I get my options when Royal London will write to me
Regards

jamesd

Assuming that you have a section 32 plan, they come in many types. One is defined benefit and that seems to be what Silvertabby was thinking of. I'm puzzled about why Silvertabby used those age range limits, though, because they don't appear to match current rules, which cut the minimum age to 55 a couple of years ago. The £30,000 limit applies to the combined value of every pension scheme you have.

But a section 32 plan can also be a perfectly normal defined contribution scheme with no special benefits or features at all. I opted out of being transferred to one of those for a workplace scheme a few years ago. If there's nothing special you have all of the now normal capability to take whatever you want from age 55.

Since there is a huge variation in what can be in a section 32 scheme it's probably best to ask what you have instead of waiting. It's possible that they might never write to you, since I'm not aware of any law that forces them to. Though they probably will eventually. There have been cases of people losing their right to a valuable guaranteed annuity rate because they didn't ask for it within the time limit and the firm didn't tell them.

xylophone

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


Did you originally have a defined benefits pension scheme that was transferred to a S32 with CIS? As you mention a GMP this seems likely.

60 is still GMP age for a female so you should be able to draw your pension at this time.

The policy must pay you a pension at least equal to your revalued GMP at GMP age.

If the GMP is all post 1988 then RL will have an obligation to index link the GMP in payment up to 3% CPI and possibly the excess by at least CPI as well.

It may be possible to take a pension commencement lump sum and a pension.

You need to read your policy to see what is said about revaluation in deferment and escalation in payment.

It may be possible to use "trivial commutation".

You should contact CIS (Royal London) after you have read your policy and ask them to tell you what options are available to you at age 60.

http://www.royallondongroup.co.uk/Documents/Coop/pdf/PPFM_CIS_Option_32_Pension_Transfer_Guide.pdf may be worth a look.

And have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

Silvertabby

Assuming that you have a section 32 plan, they come in many types. One is defined benefit and that seems to be what Silvertabby was thinking of. I'm puzzled about why Silvertabby used those age range limits, though, because they don't appear to match current rules, which cut the minimum age to 55 a couple of years ago. The £30,000 limit applies to the combined value of every pension scheme you have. Posted by jamesd

Applies to trivial commutations which include a GMP - they can't be taken before GMP age, which is still 60 for a woman and 65 for a man.

Age 55 may be the new minimum age pension benefits may be taken from - but pension schemes don't have to comply. In the case of the LGPS, for example, records which were deferred before 1 April 2014 can't be taken before 60.

This will also apply if taking the actuarily reduced payment before 60 (65 for a man) would drop it below the GMP.

LHW99

There is also the possibility of taking it as a "small pot" if the value is less than £10,000 (don't know if that would be the case here).
See:
https://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/the-right-choice-for-me/taking-a-small-pension-as-a-cash-lump-sum

Trubb

Thankyou so much guys ..i have taken on board all you information.
As suggested I will ring Royal London Monday..( to find out how much i have ) ..
Will keep you updated ��

Trubb

Hi ..just a quick update ..re :option 32
Telephoned RL ...
Apparently I may now be able to have a lump sum as there is sufficient funds in ?? ..
I will be receiving a offer and pack information in the post ..
Also I have been given a Annuity fund Value too..
£560 per year... every little helps ���� also in the post
I shall now await the results .
Plus done the online ..pension forecast too ..
I am 58 yrs old and have full 38yrs contributions ..
We do have savings too ..
So watch this space ..��
Thankyou