Transfer of Protected Rights

TCA

I am looking to move some £14k of funds (100% protected rights) built up in a contracted-out Norwich Union balanced managed pension fund into another personal pension (a former works money purchase scheme bal £10k) run by Friends Provident, which affords a greater choice of funds with lower charges and free switches. I have never contributed to either pension but now am self employed and wish to pay into one pension annually, so plan to amalgamate the two. Not being a pensions expert, I am however unsure as to whether there are any obvious disadvantages in moving this contracted-out pot to another pension. Part of the documentation I have tells me that I may be giving up any guaranteed minimum pension rights I may have earned if I was contracted out of SERPS before 6th April 1997. Can anyone enlighten me as to whether I am likely to have any such rights (and what are they?) as I was indeed contracted out prior to this date and whether there are any other factors I should be taking into account in deciding to amalgamate?



Any assistance appreciated.



TCA

dunstonh

Part of the documentation I have tells me that I may be giving up any guaranteed minimum pension rights I may have earned if I was contracted out of SERPS before 6th April 1997

For the period you were contracted out you gave up those years to qualify for a second state pension with the protected rights replacing it.

Can anyone enlighten me as to whether I am likely to have any such rights (and what are they?)

Self employed individuals dont qualify for the second state pension so you arent giving up anything at this point. You just get the basic state pension (currently £4381 a year).

whether there are any other factors I should be taking into account in deciding to amalgamate?

Charges, funds, guarantees are the usual things you need to take into account. This is an investment and where you invest the money is the most important bit.

EdInvestor

Ask Norwich Union if there is any GMP attached to this pension and if so, what is the pension income payable at retirement and what other benefits are there ( eg inflation- linked, spouse's pension).