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Protected Rights After April 2012
EclipsedMind
Posts: 174 Forumite
I have 2 smallish pensions with protected rights in them. The first is 100% protected rights and with zurich and doing badly tbh
The second is an old employer money purchase with some protected rightsand is about 2k and they have introduced an anual charge of £150 which is more than it has made any year for a while as far as I can see so it will diminish.
In addition to these I have a company money purchase pension (CGMP) with 20k in so far and I put in 12% and my employer 5% each month.
I am 37 atm and I guess a little behind on the pension but hoping to put more in if a pay rise happens in this lifetime.
My question here is I would ideally like to move all the money into the works pension as they have great fund choices and control is all web based and charges low.
The CGMP however will not accept protected rights in it so I have not been able to do so. Am I right in thinking that there will be no distinction post april and I can then consolidate?
I asked the two companies with the protected rights pensions and they faffed about and told me I will still not be able to put the protected bits into anything other than the same post april which seemed odd.
I would welcome any clarity.
EM
The second is an old employer money purchase with some protected rightsand is about 2k and they have introduced an anual charge of £150 which is more than it has made any year for a while as far as I can see so it will diminish.
In addition to these I have a company money purchase pension (CGMP) with 20k in so far and I put in 12% and my employer 5% each month.
I am 37 atm and I guess a little behind on the pension but hoping to put more in if a pay rise happens in this lifetime.
My question here is I would ideally like to move all the money into the works pension as they have great fund choices and control is all web based and charges low.
The CGMP however will not accept protected rights in it so I have not been able to do so. Am I right in thinking that there will be no distinction post april and I can then consolidate?
I asked the two companies with the protected rights pensions and they faffed about and told me I will still not be able to put the protected bits into anything other than the same post april which seemed odd.
I would welcome any clarity.
EM
I think opinions should be judged of by their influences and effects, and if a man holds none that tend to make him less virtuous or more vicious, it may be concluded that he holds none that are dangerous; which I hope is the case with me.
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Comments
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I am 37 atm and I guess a little behind on the pension but hoping to put more in if a pay rise happens in this lifetime.
A rough guide is to have £35k in your pension by age 35 (not including any protected rights as that just offsets state pension)Am I right in thinking that there will be no distinction post april and I can then consolidate?
Yes. Everything published so far has indicated that protected rights on money purchase pensions will be reclassified as non-protected rights.I asked the two companies with the protected rights pensions and they faffed about and told me I will still not be able to put the protected bits into anything other than the same post april which seemed odd.
Its possible they think you are talking about GMP or they are assuming there is GMP. Most money purchase schemes can accept protected rights with no issues. So, refusing protected rights is unusual.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yes. Everything published so far has indicated that protected rights on money purchase pensions will be reclassified as non-protected rights.
I recently moved a SIPPcentre SIPP and a Skandia protected rights pension to a BestInvest SIPP, and it all plopped into one pot, which I wasn't expecting.
It keeps it simple and reduces trading/platform costs, so I'm all for it, but I'm not entirely sure that BI have got it right as per the letter of the law!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
but I'm not entirely sure that BI have got it right as per the letter of the law!
I had a reverse situation recently where the exisitng provider gave the wrong information to the new one and they ended up with too much protected rights. It is being corrected now but you do have to keep an eye on these things as so much about the transfer system requires manual input.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
It is being corrected now but you do have to keep an eye on these things as so much about the transfer system requires manual input.
I'm loathe to correct it as I filled in all the forms correctly and the mistake greatly favours me and troubles no-one else. Come April it's all moot anyway, so maybe best to let sleeping dogs lay?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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