GMP 'cash value'

keftin

Have a GMP only pension entitlement of £5100 at 65. All contributions before 1988. Have considered all benefits it has but would prefer the extra income now.



Was provided with a valuation of £72,000 early last year when I was aged 57.

Is that a fair valuation for this GMP? It increased by £6000 from the previous year when I first requested a valuation.

Thank you.

xylophone

Does your GMP increase by "fixed rate"?

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

You are aware that you will need the advice of a Pensions Transfer Specialist in respect of a transfer out?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

There may be a delay in respect of any transfer out

https://www.moneywise.co.uk/news/2018-11-13/final-salary-scheme-members-seeking-transfers-told-to-expect-delays-after-high-court

Have you obtained a new state pension statement?

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

keftin

1) In payment by CPI


In deferment the scheme states increases will be with regard to s148 of the 1992 Act. However the amount I have been informed I will be entitled to at age 65 has remained the same since I was first informed 20-30 years ago, so seems fixed.


2)Yes, I was thank you.


3) Was not aware of that.


4) Checked last year.

hyubh

keftin wrote: »

In deferment the scheme states increases will be with regard to s148 of the 1992 Act.

Like how public sector schemes revalue GMPs then.

However the amount I have been informed I will be entitled to at age 65 has remained the same since I was first informed 20-30 years ago, so seems fixed.

It will be either one or the other. Might be sensible to get clarity on this from the administrator (written not verbal) - if your GMP really does use S148 revaluation, then the statements you've had quoting fixed rate have been incorrect.

xylophone

Is this by any chance a public service scheme?

If so, which?

Otherwise, are you willing to identify the scheme?

Is the scheme booklet available on the internet?

When you left this employment, what exactly did your statement of deferred benefits have to say about GMP and excess?

Brynsam

keftin wrote: »

Is that a fair valuation for this GMP? It increased by £6000 from the previous year when I first requested a valuation.

Whether you think it's 'fair' or not isn't the issue; it is what it is - and trustees (if this is a private sector scheme) are required to ensure that transfer values are 'fair and reasonable'. What would you do with the cash if you transferred it? Would it give you the cash/flexibility you are seeking?

keftin

Private pension scheme.


Had another longer look through the scheme and elsewhere it is written that there is an (a) or (b) revaluation ...(a) S.148 (b) at the discretion of the trustees...known as a fixed rte valuation.

I guess that explains it.


I was merely wondering if it was a fair offer in relation to the potential pension liability as I can't seem to find any other examples of what others have received.


Having seen too many people die before retirement or suffer ill-health in retirement the option that people now have to access funds brings into focus the 'enjoy it while you can philosophy.