Gmp stopping me cashing pension

Vizlady

I have been advised my pension does not have sufficient funds to adhere to the limit set for guaranteed minimum pension. Originally the pension was with my previous employer Cargill but 2 years ago was handed over to Mercer. My question is can I move this pension to my current employment pension with Royal London, or is there any way I can remove the GMP requirements from the Mercer pension? I'm really annoyed that I can't access any funds from my Mercer pension and they are extremely hard to deal with.. It took 5 months of correspondence to arrive at the news I couldn't get my money.

Silvertabby

Vizlady wrote: »

I have been advised my pension does not have sufficient funds to adhere to the limit set for guaranteed minimum pension. Originally the pension was with my previous employer Cargill but 2 years ago was handed over to Mercer. My question is can I move this pension to my current employment pension with Royal London, or is there any way I can remove the GMP requirements from the Mercer pension? I'm really annoyed that I can't access any funds from my Mercer pension and they are extremely hard to deal with.. It took 5 months of correspondence to arrive at the news I couldn't get my money.

Based on my assumption that this is a final salary/db scheme and that you are a lady aged between 55 and 60, it sounds like you have failed the GMP test.

As briefly as possible, your pension fund is obliged to pay you at least the amount of your GMP. However, if an actuarial reduction for early payment and/or pension reduction due to commutation takes your pension below the GMP limit then you have failed the test and can't take the pension until, at the latest, GMP age (still 60 for a woman, 65 for a man).

The only way round this would be to transfer your benefits to another fund - but just because you can do something doesn't mean that you should. You will almost certainly need to obtain (and pay for) independant financial advice.

Seabee42

It sounds like you left a while ago and the GMP has a high rate of fixed rate escalation. You can get round it by transferring to a money purchase pot but if the your pension is not sufficient to cover the GMP you will probably get a higher pension by leaving it. (It will very likely restrict your tax free cash as well).

Marcon

Vizlady wrote: »

I'm really annoyed that I can't access any funds from my Mercer pension and they are extremely hard to deal with.. It took 5 months of correspondence to arrive at the news I couldn't get my money.

It's no good getting 'really annoyed' that you can't access the funds - that isn't the fault of Mercers, who are simply the administrators. If you transfer out to a defined contribution arrangement, the GMP element falls away and becomes 'just part of the pot' - but as others have already said, just because you can doesn't mean you should.

What you are entitled to be annoyed about is the five months you claim it has taken to get this answer and if you want to complain about something, that's what should be in your sights.

xylophone

https://forums.moneysavingexpert.com/discussion/1439747/guaranteed-minimum-pension-early-retirement

You are a deferred member of a defined benefits scheme administered by Mercer.

You must have been a member of the scheme pre 1997 as you have a GMP.

Assuming you are female your GMP age is 60.

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

http://www.nortonrosefulbright.com/knowledge/publications/141433/pensions-briefing-guaranteed-minimum-pensions

Have you obtained a state pension statement?

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

https://www.pensionsandannuities.co.uk/guaranteed_minimum_pension_gmp.htm