Protected Rights

Since October 2008 it has been permitted to transfer accumulated “protected rights” into a SIPP.  Protected rights are either pension entitlements which have arisen as a result of contracting out of the State Earnings Related Pension Scheme (SERPS) or the second tier pension (S2P).

They may take the form of either benefits accrued in appropriate personal pension contracts or Guaranteed Minimum Pensions (GMPs) or pension rights contained within contracted out occupational pension schemes. These latter could include the entirety of pension rights accrued after 6th April 1997.

Careful consideration needs to be applied to how such rights should be dealt with – whether they should be retained in their existing format or transferred. Nigel Sloam & Co will provide an expert analysis and advisory service.

The investment freedoms of the NSS Solution SIPP will certainly provide additional investment flexibility in respect of any transfer payments made and may also provide additional flexibility in benefit drawing.

It should be noted that The NSS Solution SIPP may receive previously accumulated protected rights - but is not a vehicle to be used for future contracting out.