Post 65 GMP DB pension transfer query
Wildparaplanner
Member
Hi everyone,
I've not come across a case like this before where the client (male) is over age 65.
They have a deferred DB scheme which we are analysing to understand a transfer. The scheme has provided a CETV and all the relevant transfer out documents.
However, they have pre88 GMP included in the benefits. The scheme pack says the following:
"If you are at or above the GMP payment age set out above, there are legislative restrictions on the types of schemes which can accept the transfer of the GMP part of your pension. It can only be transferred to a formerly contracted-out salary related pension scheme, which is able to pay the GMP and any increases to it".
Can someone talk me through the logistics of how a transfer would have to go ahead and in what format?
Thanks
Wild
Comments
You'll need to find somewhere to take that GMP liability, so I doubt you'll find a scheme to take it and take on the GMP liability I'd imagine.
If you can;t you'll need to ask the scheme if they will put the GMP in payment and allow a transfer out of the balance (doubtful).
Thanks Les,
Can someone explain the nuances between a deferred GMP liability for both pre- and post-age 65 and why it differs? Why are the rules for transferring it different?
I don't know the answer to why I just know it does!