Protected Rights in your SIPP
New rules introduced in October 2008 mean that it is now possible to transfer existing protected rights pension funds to a Self Invested Personal Pension (SIPP).
Before October 2008, protected rights funds had to be invested through traditional insurance-based personal pensions. This often restricted fund choice and left many investors languishing in poorly performing ‘Managed’ or ‘With Profits’ funds.
You can find out if you were ever contracted-out by calling the HMRC Contracted Out Pension Helpline on 0845 915 0150. Make sure you have a note of your National Insurance number to hand as they will need this to track down your contracting-out record.
Your Protected Rights and the BrilliantWithMoney SIPP
The BrilliantWithMoney SIPP accepts transfers of protected rights pension funds. These are the pension funds built up when investors contracted out of the State Earnings Related Pension Scheme (SERPS) which later became the State Second Pension (S2P).
The ability to transfer protected rights funds into your BrilliantWithMoney SIPP means you can take full control over the investment of this important part of your pension benefits. The same extensive fund range is available for your protected rights fund, allowing you to adopt the same investment choices as you decide to apply to your main pension fund.
There is no set-up fee, no transfer in fee and no additional annual fee for transferring your protected rights pension fund (or funds!) to the BrilliantWithMoney SIPP.
As is the case with the majority of SIPPs, whilst we can accept a transfer of an existing protected rights pension funds we are unable to offer continued contracting-out of S2P via the BrilliantWithMoney SIPP.
