Transfer pension into a SIPP - No !

My mrs left a job in 1978 with a "frozen" pension. It was due to be taken in Aug 2010 when she was 60.

They have offered her:

  1. A pension of 1100 per year, or
  2. 5000 + a pension of 760 per year

We think (2) is much better than (1), but would prefer to take a "transfer value" into a SIPP, then take 25% lump and do draw down.

The company concerned say this is not possible because the pension was frozen in1978, and she didn't take on her 60th birthday.

Can this be true ?

TIA.

Reply to
Jim
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Seems marginal to me.

Is this a "money purchase" scheme or one based upon final salary (plus indexing).

I'm guessing the latter because there weren't many company funded money purchase schemes in 78

I don't know about these reasons but AIUI it isn't possible to transfer any "final salary" pension into draw down.

(and as an aside, surely you don't actually need to use a SIPP to operate draw down)

tim

Reply to
tim....

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