SIPPs and Protected Rights

14-07-2008

                                                            

The DWP published a consultation paper at the end of June 2008 confirming that they will permit Self Invested Personal Pensions (SIPPs) to hold protected rights benefits with effect from 1st October 2008.

Within this consultation paper they have also confirmed the following: -

• Protected Rights held in a tax registered personal pension scheme (including a Sipp Scheme), may be invested in the full range of investment products permitted by the tax rules.

• As with any appropriate scheme, protected rights held in a SIPP will need to be ringfenced until such time as all of the protected rights rules are repealed.

• There will still be a requirement to provide a 50% spouse’s pension on death of the member.

As a result of the above, we are pleased to say that Westerby Trustee Services will be applying for an appropriate scheme certificate which will enable us to accept protected rights transfers for full self-investment from 1st Oct 2008.