Okay so this is a bit of a rant about my pension so for the back story take a look at this post.
The short version is that I’m transferring my public sector pension into a SIPP (Self Invested Personal Pension) because the government are thieves and I do not want to work until I die.
Basically I received word from my SIPP provider of choice today that they will indeed be able to transfer my final salary public sector pension into a SIPP but their Compliance Manager has stated that a public sector final salary scheme is not something that they would generally want to be associated with, particularly when an opt-out is involved except in ‘very exceptional circumstances’.
The opt-out is in reference to the fact that I have to essentially resign from my public sector pension, transfer the funds into the SIPP and then re-apply to join the pension as an employee of the local authority.
This is strange since the T and C’s in my contract of employment states that I will automatically be enrolled into the pension after after 3 months anyway.
They go on to state that:
It would also have to be conducted on an advisory basis with associated additional fees of a minimum of £795 + VAT
I admire the fact that they care enough about pensions to question the reasons why I’d like to opt out of a final salary public sector pension.
However they are probably unaware of the long-term damage this and successive governments are committed to doing to public sector pensions, notwithstanding the fact that the pension I’m a member of will cease to be a final salary scheme from April this year and will instead be valued using CPI and a ‘career average earnings’ and I will only get access to it until I’m at least 70, probably older by the time I retire.
This is the type of government thievery I’m trying to avoid in the first place and it’s not as if I’m not going to re-join the scheme anyway as a sort of ‘safety net’ just in case I keep forever buying a bunch of cigar butt stocks that turn out to have absolutely no puffs left in them whatsoever.
Well I’ve sent them a reply asking them to reconsider their position because joining an advisory scheme is not what I intended.
I would not even dream about transferring my pension into a SIPP unless I felt confident enough to manage risk when buying and selling stocks and anyway I’m splitting the risk between a government pension and a self managed pension.
I await their reply and when I receive it I shall let you know.
Thanks and peace unto you comrades all.
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