Protected / Non-Protected Rights

Bmth100

I have an Aviva Pension through my new employer at which I started in February. I've immediately moved out of the "lifestyle" option (a fund managed by the company's arrangement) and into the option that allows you to choose your own funds, as I'm happy to have a slightly higher level of risk.

However, now the swap has gone through, something new has popped up to indicate that the 2 funds I'm investing in are "Non protected rights funds".

I have googled this, but there are a lot of long winded explanations available and I'm new to investing / Pensions. Can anybody explain this in brief layman terms for me, in terms of the positives/negatives vs what I assume is protected rights?

xylophone

This seems very odd.

https://www.pensiontransferexperts.co.uk/pension-transfer-news/why-protected-rights-pensions-is-really-a-misnomer-today/

dunstonh

However, now the swap has gone through, something new has popped up to indicate that the 2 funds I'm investing in are "Non protected rights funds".

That is correct. Any contributions in your pension should be non protected rights. Protected rights were abolished a few years ago.

There is no need to list positives or negatives as protected rights no longer exists for you.

jamesd

Protected rights were protecting the government's right to force you to buy a very unpopular type of annuity with the money. The restriction was removed a few years ago so it no longer matters, it's just pension money like the rest.

sandsy

You can ignore it. It's simply a case of the pension company not getting around to changing the name of the funds once the distinction between protected rights money and non-protected rights money disappeared.

Caronm

Hi all iv had a letter saying that I was made bankruot in 1989 but it's to do with dwp and non protected rights in my pension what does this mean plz

xylophone

Is this relevant?

https://www.insolvencydirect.bis.gov.uk/casehelpmanual/P/Pensions/Part2.htm

(8) What are protected rights?

Protected rights arise where the bankrupt has opted out of an employer's occupational pension scheme and contracted out of the state second pension S2P (formerly SERPS), and has replaced them with a personal pension. That personal pension policy in which the bankrupt has invested funds will attract protected rights to the same level as the S2P would and are treated in the same manner so, accordingly, do not vest in the trustee.

If a bankrupt's personal pension consists exclusively of protected rights, the official receiver/trustee will not be able to realize the pension and the policy document should be returned to the bankrupt. If the policy only consists of part protected rights, the official receiver should note which portion of the fund does not vest in the trustee and will thus be available to the bankrupt at the appropriate pensionable age.

If the policy has no protected rights, the official receiver should make the bankrupt aware of this so that he/she can seek independent financial advice on the options available which may include setting up a new pension. The official receiver must not advise the bankrupt to stop paying into the existing policy.[/U]