Protected Rights and SIPP

Those who opt-out of the State Second Pension, formerly SERPS (The State Earnings Related Pension Scheme) receive rebate payments into a personal pension instead. Funds built up from these rebate payments are called protected rights.

Thanks to a change in pension rules, from 1 October 2008, protected rights pension funds can be moved into a SIPP for the first time.

Opting out of SERPS using a personal pension was first allowed in 1988, so it may be worth checking if your existing personal pension or your employer's pension scheme hold protected rights.

Why move protected rights into SIPP?

A SIPP gives you much more investment choice and control. A SIPP also gives you more flexibile options when the time comes to take your pension income.

What does this mean for me?

If you hold protected rights funds in your personal pension or employer's pension scheme you can now transfer these funds into a Standard Life SIPP.

This means that you can now control where these funds are invested, rather than have only a limited range to choose from.

The wider investment choice available through the Standard Life SIPP allows you to invest in assets not normally available in a personal pension. For example, commercial property, stocks and shares, government and corporate bonds. Ask your adviser for the full details.

You also have more choice at retirement, for example, by using income drawdown instead of buying an annuity. Income drawdown allows you to start taking a pension income from age 50 while keeping the remainder of your fund invested.

Transferring a pension is not a decision you should take lightly. We strongly recommend that you speak to your usual financial adviser who can tell you whether this meets your needs.

What are the advantages of moving protected rights into a SIPP?

You will have more options and flexibility when you come to take your pension meaning that you can fit your retirement income around your needs. A SIPP can also help you take your retirement income in the most tax-efficient way.

You could also simplify your retirement planning by moving all your pension funds into the one place.

Any reference to legislation and taxation is based on Standard Life's understanding of law and HM Revenue & Customs practice at date of publication. Tax and legislation are liable to change in the future.

Why invest protected rights funds into a Standard Life SIPP?

• We already offer a comprehensive SIPP and continue to enhance our SIPP to increase the options available to our customers.
• Our 1000+ mutual fund supermarket increases your investment choice.
• Cautious investment options are available for those who prefer lower risk investing.
• More people have a SIPP with Standard Life than anyone else. (source: Money Management Magazine, September 2008 SIPPs Survey)
• Standard Life has recently been named 'Moneywise' 2008 best comprehensive SIPP provider.

Important Information

Ask your financial adviser for more information and advice about Standard Life SIPP.