Protected Rights Fund

Kermit57

Hi There

I'm a newbie to the forum so bear with me!

I'm 57, have been drawing a small personal pension from Aviva for about six years and still have a protected rights fund with them from a civil service transfer in the 80's. It's value is around £14K and I've received notification from them that there are many changes to this type of fund from April this year although I couldn't understand the content of there "flyer" - why can't they write them in English?

Previously, I would have been unable to draw on this part of my pension fund until 65 but it appears that is changing???

Can anyone advise me:

1. Can I access it post April 2012?

2. If so, can I draw all or any in cash?

Really appreciate a simple answer (being a simple sort of block!)

Many thanks

dunstonh

why can't they write them in English?

Regulatory and compliance reasons. They cannot offer opinion, advice or hint of suggestion of what you should do. They have to state factual information. The facts can often be bland if you dont understand the subject. It is for your adviser to put it in plain language as they do have the regulatory permissions to make it simpler.

Previously, I would have been unable to draw on this part of my pension fund until 65 but it appears that is changing???

No. You have been able to draw protected rights since age 55 since 2006.

1. Can I access it post April 2012?

yes.

2. If so, can I draw all or any in cash?

Standard pension rules apply. You can draw 25% of the value as tax free cash with the rest being used for income.

NOTE: If the transfer went into a section 32 buy out bond rather than a personal pension then the terms of the Section 32 BOB may not allow earlier commencement or for a tax free cash payment to be made. Or it may allow a greater tax free payment than 25% to be taken at scheme age as those types of plans gained automatic transitional relief back in 2006. Now, this is starting to get technical and will almost certainly be over your head but its quite possible that you hold this type of product and it needs to be considered. You can transfer from a S32 to a personal pension to get standard pension rules but any guarantees or special terms would be lost.

jamesd

From April it becomes just like any other personal pension money, without the restrictions requiring purchase of an annuity with provision for a spouse or a requirement to use unisex annuity rates if buying an annuity rather than using drawdown.

Kermit57

Excellent! Thanks to you both