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  • FIRST POST
    • sheilavw
    • By sheilavw 13th Oct 18, 9:22 PM
    • 1,036Posts
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    sheilavw
    not allowed pension
    • #1
    • 13th Oct 18, 9:22 PM
    not allowed pension 13th Oct 18 at 9:22 PM
    forgive me, I am not clued up on pensions. Unfortunately, my Husband was diagnosed with motor neurons disease 17/7 . He has a pension he paid into 1978 to 1991 from a previous employer. We never here from them. Hes written to them about his health. They have replied saying that they have no ill health provision, and has the pension is less than gmp he cannot have it. He is 59, I thought you were allowed 25% tax free? I was looking for the letter to put a quote in but cannot find it! They did say he could transfer it, but didnt give a figure so we have no idea of a value. Would we benefit from making an appt with a specialist?
    Thanks
Page 1
    • Thrugelmir
    • By Thrugelmir 13th Oct 18, 9:28 PM
    • 61,289 Posts
    • 54,536 Thanks
    Thrugelmir
    • #2
    • 13th Oct 18, 9:28 PM
    • #2
    • 13th Oct 18, 9:28 PM
    Is your husband due to receive this pension at 60?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • squirrelpie
    • By squirrelpie 13th Oct 18, 10:40 PM
    • 95 Posts
    • 42 Thanks
    squirrelpie
    • #3
    • 13th Oct 18, 10:40 PM
    • #3
    • 13th Oct 18, 10:40 PM
    Would we benefit from making an appt with a specialist?
    From the sound of it, yes. Make an appointment with an IFA who specialises in pensions. The INDEPENDENT part of Independent Financial Advisor is very important.
    • p00hsticks
    • By p00hsticks 13th Oct 18, 11:07 PM
    • 6,542 Posts
    • 7,094 Thanks
    p00hsticks
    • #4
    • 13th Oct 18, 11:07 PM
    • #4
    • 13th Oct 18, 11:07 PM
    The 25% lump sum is for 'Defined contribution' pensions - i.e. ones where you simply have an invested pot of money made up from you and your employers pension contributions.

    It sounds like your husband may have a 'defined benefit' pension - where when you reach the scheme retirement age you get paid a regular sum of money linked to your previous salary every month (or year) for the rest of your life. Some schemes also offerthe option of a lump sum in return for a lower monthly payment.

    If your husband has one of the latter, then providing he is more than 12 months away from the scheme retirement age he can ask the pension scheme to quote him a 'cash equivalent transfer value' (CETV). He could then transfer this sum into a defined contribution scheme, although this is often not recommended and if the CETV value is more than 30,000 you are legally required to get advice from a suitably qualified Independent Financial Advisor to ensure that you are doing the right thing.
    • sheilavw
    • By sheilavw 14th Oct 18, 8:24 AM
    • 1,036 Posts
    • 874 Thanks
    sheilavw
    • #5
    • 14th Oct 18, 8:24 AM
    • #5
    • 14th Oct 18, 8:24 AM
    thanks everyone . I think we need to get advice. I do know that it increases byn7.5% a year from an old letter. We never get any updates.
    • xylophone
    • By xylophone 14th Oct 18, 11:38 AM
    • 27,653 Posts
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    xylophone
    • #6
    • 14th Oct 18, 11:38 AM
    • #6
    • 14th Oct 18, 11:38 AM
    It seems that your husband has a deferred DB pension with GMP.

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

    It is quite possible that a GMP test has been done and not "passed" - see

    https://forums.moneysavingexpert.com/showthread.php?t=1439747

    That said, it is rather surprising that as a DB Scheme, there is no provision for early payment on grounds of ill health.

    Be aware that if the value of the benefits is greater than 30,000, your husband will be required to take the advice of a Pension Transfer Specialist.

    https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-transfers-conversions/

    https://www.ftadviser.com/pensions/2018/10/04/devilish-details-of-fca-s-pension-transfer-rules/
    • xylophone
    • By xylophone 14th Oct 18, 12:36 PM
    • 27,653 Posts
    • 16,612 Thanks
    xylophone
    • #7
    • 14th Oct 18, 12:36 PM
    • #7
    • 14th Oct 18, 12:36 PM
    Is this your husband's only pension?
    • sheilavw
    • By sheilavw 14th Oct 18, 4:58 PM
    • 1,036 Posts
    • 874 Thanks
    sheilavw
    • #8
    • 14th Oct 18, 4:58 PM
    • #8
    • 14th Oct 18, 4:58 PM
    no he has one he paid into himself , brittanic ( now phoenix) because his old employer didnt hsve s scheme
    • xylophone
    • By xylophone 14th Oct 18, 7:04 PM
    • 27,653 Posts
    • 16,612 Thanks
    xylophone
    • #9
    • 14th Oct 18, 7:04 PM
    • #9
    • 14th Oct 18, 7:04 PM
    no he has one he paid into himself , brittanic ( now phoenix) because his old employer didnt hsve s scheme
    Has he looked into accessing it?
    • sheilavw
    • By sheilavw 14th Oct 18, 8:22 PM
    • 1,036 Posts
    • 874 Thanks
    sheilavw
    yes just 25% tax free
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