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Transfer ban shows pension tinkering is getting worse

THE EDITOR’S COMMENT OF THE WEEK

I think it is amazing that the Government is to stop the majority of people from transferring out of final-salary pensions into defined-contribution schemes from April 2012.

At a time we have to comply with treating customers fairly, I think the Government should do the same. Will this mean it will not be possible to transfer from a DB scheme to a temporary annuity such as the ones provided by living Time and Liverpool Victoria – and there will presumably be more of these by that time.

I have had cases recently where one person who had been dismissed from public service needed to go 10 years early with a 40 per cent actuarial reduction and another suffering from cancer who is retiring and wanted to draw benefits from one of the major banks and again there would have been an actuarial reduction of 40 per cent.

By transferring to Liverpool Victoria, we were able to achieve much great lump sums in cash of between £30,000 and £40,000, the pension is greater and, of course, there is the inheritance angle as well.

If this coalition Government proceeds with this scheme, people will be disadvantaged.

I believe this Government is looking as if it is going to be worse than Labour for tinkering with pensions, a subject they clearly do not understand, and they do not care about the people who will be badly affected.

I have written to my MP regarding this matter and would be interested to see what the pensions minister has to say as a result. I am distressed and angry.

BGW Jamieson
Jamieson Financial Management

Bognor Regis, West Sussex qualifications

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