Section 32s with GMP are very much legacy products. There are a handful of providers who offer new Section 32 contracts, but they won’t accept a pension with GMP as they don’t want to take on a guarantee. 

There are a number of companies who were very active in this market back in the late 80s and early 90s. And some have considerable amounts of such legacy business. 

Many of these contracts have some strange quirks and some deal with them differently to others. Some of the companies we have had  experience of transferring are listed below:

• Aviva
• Aegon
• Reassure (formerly Pearl)
• Clerical Medical
• Royal London (formerly CIS)

It is interesting to note that both Royal London and Clerical Medical are companies that sometimes offer cash values upon transfer, even if the fund value cannot support a transfer.  What this means is that they will work out how much the GMP income is worth as a cash sum, and give that as a transfer value, and if this is higher than the actual fund value.  See Section 32 transfers for more details. 

What this means is that if you ask for a transfer this might be based on the value of the fund, or if bigger, the cost of providing the income. See GMP & Section 32 Transfers for more information.