Aviva pension money to USA

Joe9T9

I have power of attorney for my stepson who is 57 and lives in the USA. He moved there in 2007 when work in the UK was scarce. He is now a US citizen and with my help he is trying to get about £7000 of pension money back to the USA so that he can put the money into a suitable US scheme. We are aware that he can't do a transfer as the USA tax system and QROPS doesn't allow it. Aviva are being very unhelpful and are saying that that the policy is written to 60 and that's it, no withdrawals allowed. Any thought or help would be appreciated.

dunstonh

Aviva are being very unhelpful and are saying that that the policy is written to 60 and that's it, no withdrawals allowed.

If its 60, that suggests it not a mainstream pension. Mainstream pensions can be taken at age 55. A minimum age of 60 would likely be a section 32 buy out bond with GMP.

Aviva are not there to be helpful or unhelpful. They have to comply with legislation and cannot break laws to be more helpful to you. They also hold no advice permissions so cannot offer opinion or advice on what should be done. And being a highly specialist area, they have no choice but to avoid any comment that could be perceived as advice, opinion or a course of action.

Maybe your stepson can wait to 60 and draw it then.

Dox

Unfortunately AVIVA aren't being unhelpful - they are simply telling you the terms of the policy your son has with them.

Have you asked if he can transfer from the AVIVA scheme to another UK scheme (picking one which would allow him to draw his funds before age 60)?

squirrelpie

Does he want to draw it now, or does he want to transfer it?

Joe9T9

The original policy was with Provident Mutual then taken over by Norwich Union which became Aviva. Unfortunately we have no paperwork to give us a guide as to the terms of the policy which is why it is so frustrating just to get blank responses. My stepson is convinced that the policy was originally written to 55 but he has no proof. I have written to Aviva asking for details of the original policy and am waiting for a reply. He would like to move the money to a US pension scheme but the lack of a QROPS does not allow it.

Joe9T9

Subsequently found out that the policy is a Section 226 pension plan and I am now lost. Any help would be greatly appreciated.

xylophone

Subsequently found out that the policy is a Section 226 pension plan and I am now lost. Any help would be greatly appreciated.

This thread may be of interest.
https://forums.moneysavingexpert.com/discussion/5876028/cashing-in-a-section-226-pension-nightmere

dunstonh

Joe9T9 wrote: »

Subsequently found out that the policy is a Section 226 pension plan and I am now lost. Any help would be greatly appreciated.

Well that means it could not have been 55 then. S226 RACs had a minimum retirement age of 60 prior to 1988 (when they ceased being available).

in 2006, the rules changed to allow RACs could be taken at 55. There are some providers that require a transfer out to a modern plan to allow earlier than 60 retirement. Not common but does happen sometimes.

Joe9T9

Finally got through to Aviva and got blanked again. Told 'the policy is written to 60 and cannot be accessed early. I said that the law had changed but was told 'no it did not apply to an S226' I have asked for their interpretation of the legislation before I get a complaint going to pensions authority and the FCA. I have to wait until 30th Nov for a reply.

dunstonh

The law changed to allow RACs to be taken from 55 but providers were not obliged to make changes if they didnt want to. Some did. Some didnt. East fix normally is to transfer to a modern plan that does allow it.

You cannot complain to the FCA. And if a provider is following the original contract terms (which they are in this case) then no matter how hard you complain, there is no breach of contract and they cannot be forced to change it by an ombudsman.

Joe9T9

Whilst wading through other threads I seem to recall advice that said move to a stakeholder pension with Virgin Money and then the money could be taken out of the UK fund so that it can be sent the USA as cash and then added to a 401K.