Section 32 two parts

Jonty6262

I have a section 32 from many years ago. It has two seperate parts. One is the original with a GMP. Part two does not have a GMP. I get separate (in the same envelope) statements yearly, both have their own policy numbers.The one with no GMP has a separate transfer value to the other. The one with no GMP has seperate benefits and is an addition to the original policy after it was decided I was miss sold the original plan. Plan two cannot be used to supplement the original plans GMP or anything else in any way.Example

Plan one Section 32 GMP plan transfer value £35,000

Plan two plan section (NO GMP) 32 transfer value £18,000

Can I transfer the plan two part as there is no GMP? 

dunstonh

Can I transfer the plan two part as there is no GMP? 

Generically, yes you can. Excess funds on a s32 are not restricted by the GMP.   However, whether the provider allows it is a different matter as it would depend on their software.

Jonty6262

dunstonh said:

Can I transfer the plan two part as there is no GMP? 

Generically, yes you can. Excess funds on a s32 are not restricted by the GMP.   However, whether the provider allows it is a different matter as it would depend on their software.

Thanks dunstonh, would the company aviva give an idea? 

dunstonh

Jonty6262 said:

dunstonh said:

Can I transfer the plan two part as there is no GMP? 

Generically, yes you can. Excess funds on a s32 are not restricted by the GMP.   However, whether the provider allows it is a different matter as it would depend on their software.

Thanks dunstonh, would the company aviva give an idea? 

Yes.  you need to ask them if you can transfer the non GMP segment (often referred to as excess) without needing to transfer the GMP part.

TVAS

Why do you want to transfer it?
Have you asked if you could take the whole non GMP fund as tax free cash. The provider will do a calculation on salary and service. I am asking because it is a small sum this may be the case assuming you are 55 or older.

Boomer58

I had a Section 32 plan with Aviva which was in 2 parts, the original with a GMP and the re-dress without. I started to take my pension in Jan 2019 using an annuity with Aviva based on the part with the GMP. I couldn't take it as cash (due to the company I worked for having opted out of SERPS) but they would have let me transfer that part to another provider, if I could have found one willing to meet the GMP (not possible given the size of the fund). The other part I could have used to buy an additional annuity with Aviva or another provider but, given its value, I took the option of a cash lump sum, being well within my lifetime allowance with no tax to pay. The GMP fund was £85k with a GMP of £6,500 p.a; the non GMP fund was £38k (estimated pension £1,400 p.a. with Aviva.