Didn't know where to put this so here goes.

During my long career, I worked for a while for the public sector (I know, I know) anyway, I recently turned 60 and got a letter from my local government pension scheme offering me lower tax free lump sum, higher pension - higher tax free lump sum, lower pension or deferrment.  I chose deferment as there's no way I can afford to retire and anyway all the stuff I've had from them over the years said my pension was at 65 but could be taken at 60 at a lower rate!!!!!

Anyway I wrote back and said I wanted to defer it till 65.  Well now I've got another letter that says even if I defer I have to take the Guaranteed Minimum Pension which in my case is £252 per year paid at £20 something a month - obviously taxable as I still work, and taking this money will decrease the tax free lump sum I can take when I'm 65, and do I want to change my mind the take the full pension now.

Now, I know very little about pensions but assumed (correctly) that this GMP was something to do with SERPs and opting in/out which is fair enough.  However, because of the equalisation of pension age of men and women I am not entitled to my state pension until July 2012 so why should I have to take the SERPs element a year and two months before I can claim my state pension?????

I rang the pension provider and was told that if I still worked for the public sector I would not have to take the GMP but because I worked elsewhere (ie self employed) I had to.  I just don't understand, it's a complete mystery.

I suppose I could change my mind and take the higher lump sum but what would I do with it with interest rates so far below the rate of inflation plus having to take a pension on which I would be taxed because my earnings are higher than my personal allowance.

Don't you just love the unjoined up thinking of our wonderful government(s) of whatever colour?