Tailor made GMP plan...help!

Xxlynsxx88

Hi I am just looking for a bit of advice. Fathering law passed away 3 years ago...husband was contacted by aviva about a Tailor made GMP plan (pre 01/92).. he didn't do anything about it as wasn't in the right frame of mind. Now he's come across the letter again and contacted aviva....they have sent out a death benefits questionnaire to fill in and send back. Now neither of us know absolutely zero about pensions of any kind..... we haven't a clue what it is. His wife passed a year after his death. There is no will and there are 2 sons. On the original letter we received it said the GMP was worth £2300. Is that what he would of been paid yearly on his retirement or is that what the whole pension is worth? Aviva are being !!!!!! and won't explain anything to us in simple terms. My husband and his brother just want to know if that's the total payout or is it's worth less or more and if it's worth claiming now or is it something they can leave to build up and claim at a later date??? Thank you

dunstonh

we haven't a clue what it is.

It is either a section 32 buy out bond or a hybrid plan that is comparable to a section 32 buy out bond but may have transitional reliefs. That is a bit of a wordy answer but pre 2006 GMP plans may not be conventional section 32 buy out bonds and Aviva have a lot of hybrid plans that do not match the generic norm.

There is no will and there are 2 sons.

The pension is not influenced by the Will as pensions are outside of the estate.

On the original letter we received it said the GMP was worth £2300. Is that what he would of been paid yearly on his retirement or is that what the whole pension is worth?

That would have been the income (caveats apply to what actual amount it may have ended up being though).

Aviva are being !!!!!! and won't explain anything to us in simple terms.

This type of plan is quite advanced and technical and non-standard. GMP is an extremely complicated subject. The call centre staff would not be expected to be able to explain this type of plan to a high level. They are not qualified or regulated to go to the depth you are looking for. If it was a simple stakeholder or personal pension, there is little to say but this is a complicated option.

My husband and his brother just want to know if that's the total payout or is it's worth less or more and if it's worth claiming now or is it something they can leave to build up and claim at a later date???

It may not be making any money now. The death benefit may be priced at date of death. So, for the last 3 years, it may not have made a thing. There is no logic in retaining a pension for a deceased person. So, your husband should go through the death claim process.

Xxlynsxx88

Thank you for that. Made it a little clearer now. I will tell him to go ahead with it. Thanks again

xylophone

I have only seen one other poster refer to this type of policy

https://forums.moneysavingexpert.com/discussion/5245197

Hi ,i have two other polices with Aviva

Taylor made GMP plan UK AVC (pre 01/92)
Transfer Value £659.98 as of Feb 2015

https://forums.moneysavingexpert.com/discussion/comment/68899527#Comment_68899527

post 54 onwards where this was discussed.

You will note that the history of this policy was quite complex.

However, in the OP's FIL's case, it would seem that there could be a benefit payable to the OP's FIL's heirs in respect of an unclaimed AVC (possibly even old contracted out of SERPS) policy.

The OP's husband should give Aviva the information requested and go from there.

Xxlynsxx88

That's gone right over my head lol literally no idea about any of it. Only one way to find out....send in what they are asking for. I'll have a read of that thread thank you