Do I need a Solicitor to write my Will? Complicated circumstances.

xylophone

A letter I got from Aviva back in 2019 titled 'Statement of Preserved Account' tells me that the fund will remain invested to provide retirement benefits which becomes payable on my normal retirement date. I can choose to receive the pension as a guaranteed income, a flexible income, or one or more lump sums. No further contributions will be paid & the value of my fund on 31/03/2019 was £46,467. 

And you have recently been told that

Your policy will retain the original policy provisions of your former scheme. It remains subject to the requirments of HMRC & DWP. 

Is a transfer of the old policy to your existing pension scheme possible and if so is it worth consideration?

bflare

xylophone said:

A letter I got from Aviva back in 2019 titled 'Statement of Preserved Account' tells me that the fund will remain invested to provide retirement benefits which becomes payable on my normal retirement date. I can choose to receive the pension as a guaranteed income, a flexible income, or one or more lump sums. No further contributions will be paid & the value of my fund on 31/03/2019 was £46,467. 

And you have recently been told that

Your policy will retain the original policy provisions of your former scheme. It remains subject to the requirments of HMRC & DWP. 

Is a transfer of the old policy to your existing pension scheme possible and if so is it worth consideration?

Ah right I have found another letter from my company dated 17th Sept 2020 confirming the wind up scheme. The letter basically says that the trustees have taken the decision to secure your benefits within the scheme as a 'deferred annuity' otherwise known as a section 32 buy out bond. It goes on to say once the section 32 buyout bond is arranged the plan will be outside of the current scheme trust & I will have the opportunity to place the plan into a discretionary trust. It then gives me the latest fund & transfer valuation. 
To be honest this just further confuses me now. Can I transfer it to my current pension scheme & if so should i? 

xylophone

'deferred annuity' otherwise known as a section 32 buy out bond. It goes on to say once the section 32 buyout bond is arranged the plan will be outside of the current scheme trust & I will have the opportunity to place the plan into a discretionary trust. It then gives me the latest fund & transfer valuation. 

 I didn't know that these  S32 policies were still used!

 In earlier years they  were often  used when a person was leaving  a job where he had been a member of a  contracted out Defined Benefit Pension Scheme pre  April 6 1997 and needed/ wanted to transfer out  of the scheme -  the DB pension had  been required by law to provide a Guaranteed Minimum Pension and that GMP could be protected  if transferred  into a S32 pension policy. The S32 could also be used when such a scheme was winding up .

You say that the scheme which is being wound up relates to a scheme you joined twenty years ago (around 2001 presumably)  so GMP is not relevant.

It looks to be a case where there is to be

A non-consent transfer to Section 32 Trustee Buy Out Plan for deferred member benefits?

See  https://www.aviva.co.uk/business/business-perspectives/featured-articles-hub/compliance-or-consolidation/

See also https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/section-32/#:~:text=Pension Section 32 is a,future – a deferred annuity contract.&text=The benefits can be secured,one or more insurance companies.

I don't quite understand the reference to the discretionary trust unless it refers to this section

If there is no surviving spouse/ civil partner, scheme rules may allow a lump sum to be paid to the deceased’s legal personal representatives or, in some cases, a valid trust set up by the planholder before their death.

You say that you are going to speak to Aviva - you might also get some guidance from The Pensions Advisory Service.

You might check with Aviva whether you  must accept the S32 or whether you have the choice of a transfer out to your current pension or to a personal pension of your own choice.

Have you obtained a State Pension Forecast?

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

getmore4less

You have to consider the case your son's mother dies before you.

As sole survivor with parental responsibility you can nominate the next guardian.

It would require intervention to change that.

The next issue is do you trust them with both your child and your child money.

With the child being relatively old you are dealing with short time periods as well as an unlikely event.