No freedom for my pension!!!

hyubh

Heatherclark wrote: »

Grantie2 you. I am in the same position. Even though I understand the financial implications of paying out so many DBs as a pot, I am also annoyed that this is my money

But it isn't.

the pension was my savings plan

Are you really saying you confused a final salary pension scheme with a 'savings plan'? Seems very odd.

that I will be taxed on twice (earnings and pensions)

But you got tax relief on your contributions, plus will get a tax free lump sum on retirement...?

i was told that the earliest i could have it was 50 and now they have moved those goalposts to 55

Covering pensions legislation had it at 50, then this was moved back a few governments ago to 55. Personally I don't get the fuss (though certain regulars on here can still claim to be outraged...)

... and now is the only type of pension that cannot be transferred to DC as either a SIPP or cashpot.

Your language is confused - a final salary pension isn't 'transferred to DC as either a SIPP or cashpot' (a SIPP is a form of DC pension, i.e. what you would transfer out to).

On my part i have a life limiting condition

The Royal Mail scheme, like many (all?) public sector schemes, has ill health provisions - have you checked them out? From the website (http://www.royalmailpensionplan.co.uk/section-c/leaving-scheme/deferred-benefits):

Taking your benefits early due to ill health

If, after leaving the Plan, you later find yourself too ill to work, you might be able to take your pension and lump sum early on the grounds of ill health. You wouldn’t have to wait until you’re age 55, provided we approve your application after considering the medical evidence. In these circumstances, we’d start to pay you your Age60 and Age65 pensions at the same time, without any reduction, along with your lump sums.

and the pension i have with the Post Office is relatively small, if i was able to transfer to DC i could invest part and use the other for medical needs.

Why on earth do you have a burning desire to chuck away an index-linked guaranteed income...?

Whether or not people feel it is greedy

'Greedy' isn't the word that comes to mind...

the main thrust here is it is money we have earned and they have kept (interest?) and use and give us access to on their terms

Contributions (the larger part coming from the company) were invested with the idea that those investments would pay for you and your colleagues' future pension benefits. Your apparent belief that a DB scheme is a conspiracy against the individual member is rather silly to be honest - the reason why the government nationalised the pension fund before privatising the company is because (as with most DB schemes) the actuarial estimates from 20-30 years back about how much needed to be contributed to pay for future pensions didn't (don't) stack up in hindsight - and being DB, it's the sponsoring employer that picks up the tab. With the government taking on the liabilities directly however, Royal Mail in the private sector can't be laid low by historic pension debts.

I have set up a workplace pension for a couple of companies in the last couple of years, they can opt out and invest their money where they feel meets their terms and needs, we did not get that.

Erm, even leaving aside the fact the risk lays with the individual member (rather than, as with DB, with the employer), do you want to confirm the employer contribution rates for those AE schemes you've set up?

I also did not receive a letter to tell me of the changes, in addition i was on the phone to them to ask if i could transfer to a PO DC pension in the months prior to the 2015 date and they never told me or advised me of the up and coming changes.

Sounds like you had a lucky escape...

grantie2u

Wow, lots of very bitter and twisted people here. It's still a fact whether you like it or not that ex RM employees who left their service some time ago did indeed pay into their pensions (perhaps the amounts on my payslips were imaginary) and have been frozen out of the pension freedoms. Very few comments have actually bothered to answer my query, the majority seemingly jealous individuals who clearly didn't have the foresight to make any provision for their own retirement, facts are facts people, like it or lump it, as the government have told us...

Heatherclark

Thank you again.
If i was to start working in schools again, would i be able to transfer both PO and LGPS to the latest scheme (assuming that would be a DC as DB's are being phased out)

Thank You

hyubh

grantie2u wrote: »

Wow, lots of very bitter and twisted people here.

Erm...

It's still a fact whether you like it or not that ex RM employees who left their service some time ago did indeed pay into their pensions

That doesn't mean the employee contribution anywhere near actually came to fund the pension benefits promised. Saying 'but it's my money!' without recognising this is a very one-eyed view of things...

and have been frozen out of the pension freedoms.

Did you read my response to you? I actually agree it was reasonable not to predict that the historic Royal Mail scheme would be turned into an unfunded one. However, inferring you are somehow a 'victim' because of this is a little silly. Sure you are unable to give up your pension - but it's a great pension, for the amount you actually put into it!

Very few comments have actually bothered to answer my query

The answer's negative... Admittedly I don't think I've seen a Royal Mail one, but there are several cases on the Pensions Ombudsman site where a member of the TPS or NHS schemes has complained about the transfer out ban, and all have been rejected.

the majority seemingly jealous individuals who clearly didn't have the foresight to make any provision for their own retirement

Huh? As I said when responding to your posts, we all think your desire to chuck away a public sector pension is very public spirited of you

hyubh

Heatherclark wrote: »

If i was to start working in schools again, would i be able to transfer both PO and LGPS to the latest scheme

Assuming things stay the same as they currently are, you would be auto-enrolled into the LGPS again, and yes, you would have the right to transfer in your previous pensions within the first 12 months of starting the new job. This would also be on 'Club' terms, so assuming the Post Office pension was final salary, that would be a good thing were your final salary when with the LGPS to be higher in real terms than the final pensionable salary used to calculate your Post Office benefits. Conversely, transferring would be a bad thing if your final LGPS salary was less (since the value of the transfer in at the end would be less than if you had left the Post Office pension separate).

That said, if you're thinking about getting a low-paid job at a school only as a staging post to transferring out all your various DB pensions to a DC arrangement... urgh, just check out the LGPS' (very good) secondary benefits (ill health, life cover...)

(assuming that would be a DC as DB's are being phased out)

They are not being phased out in the public sector.

Heatherclark

Thank you
But still confused: My final salary PO was higher than the LGPS, but a new job would pay more annually than either of them did, so if I have them both transferred, then the 'one' pension could become a DC? I must explain that it is ill health that has thrown me into this position and the potential for treatments not on offered on the NHS.

Thanks

Silvertabby

If you were to re-join Local Government, then you could ask to transfer your PO benefits in. You would then be given some figures to look at before you decide if you want to go ahead or not.

hyubh

Heatherclark wrote: »

But still confused: My final salary PO was higher than the LGPS, but a new job would pay more annually than either of them did

It's the rate of pay that's important for part timers in most final salary schemes. Also keep in mind your old Post Office pension has (I think - best to check) revalued by CPI ever since you left.

so if I have them both transferred, then the 'one' pension could become a DC?

You could then leave the LGPS a second time and transfer out to a DC arrangement, yes. However, none of what you say about your situation, added to the fact you have had a tendency to conflate how DC and DB pensions work, convinces me this would be a good idea.

I must explain that it is ill health that has thrown me into this position and the potential for treatments not on offered on the NHS.

You should still look at the actually-existing ill health options for your various pensions first. That said, rejoining the LGPS would put you in a better position on the issue than as a deferred member, as you currently are.

atush

Wow, lots of very bitter and twisted people here.

Nope, just one.

grantie2u

Some very interesting points everyone thanks to you all for your comments, it's been emotional.