SIPPs and Protected Rights - 2008-09-01



The government have confirmed that from this October it will allow the inclusion of Protected Rights pension monies within a SIPP. Protected Rights monies relate to rebates paid to pension plans when people contracted out of the State Second Pension scheme (S2P, previously known as SERPS).

This change allows people with Protected Rights pension monies much greater freedom in how these monies can be used and invested, as they can now benefit from the wide investment range offered by the SIPP. Previously protected rights monies had to be held in insured pension funds, which is not always appropriate for everyone.

So what does this mean for those people with Protected Rights pension funds? Well, it means that there are more options now available to you and as ever we would recommend discussing your options with an adviser prior to making any decision. In the current climate of market volatility it may be a good opportunity to review your options with regards to your whole pension and investment portfolio, and our advisers will be glad to help.

1st September 2008.