Steaming, Red hot, Juicy SIPP Protected Rights News

wombat42_2

Nudge nudge :D:D:D:cool::cool::cool::cool::eek::j:beer:

http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=305276

dunstonh

Did you catch the bit about the rule changing not occurring until 2012 though. That is going to be a pain for some DIY investors.

wombat42_2

dunstonh wrote: »

Did you catch the bit about the rule changing not occurring until 2012 though. That is going to be a pain for some DIY investors.

"But from 2012 when contracting out is abolished, the protected rights pension can be combined with other pensions pots, which is expected to drive down costs and provide more choice for consumers."

I took "other pension pots" to mean that prot rights could be combined with the new pension savings scheme which is due to be introduced in 2012, not being able to combine prot rights with non prot rights in a SIPP which hopefuly you can do this October.

dunstonh

I read it differently (not the best wording in the article). i.e.:

...from 2012 when contracting out is abolished, the protected rights pension can be combined with other pensions pots, which is expected to drive down costs and provide more choice for consumers.

I took that to mean that is the point it protected rights and ordinary rights will be combined. Under current proposals the NPSS will not accept transfers in so I dont believe it is that.

Remember that the early drafts for protected rights given out by the DWP did say that 2012 was the likely date. It was the SIPP companies that were pushing for Oct 08 not the DWP.

wombat42_2

dunstonh wrote: »

I read it differently (not the best wording in the article). i.e.:



I took that to mean that is the point it protected rights and ordinary rights will be combined. Under current proposals the NPSS will not accept transfers in so I dont believe it is that.

Remember that the early drafts for protected rights given out by the DWP did say that 2012 was the likely date. It was the SIPP companies that were pushing for Oct 08 not the DWP.

Sounds like i can plonk my existing Prot rights personal pension into a SIPP alongside my regular SIPP in Oct 2008 but maybe I cant combine the two into one SIPP until 2012. That wouldnt be a problem for me as i wouldnt take my pension until after 2012.

EdInvestor

wombat42 wrote: »

Sounds like i can plonk my existing Prot rights personal pension into a SIPP alongside my regular SIPP in Oct 2008 but maybe I cant combine the two into one SIPP until 2012.

You've got it. The two pots will need to be kept technically separate until 2012, but this is a minor inconvenience.

wotsthat

wombat42 wrote: »

Sounds like i can plonk my existing Prot rights personal pension into a SIPP alongside my regular SIPP in Oct 2008 but maybe I cant combine the two into one SIPP until 2012. That wouldnt be a problem for me as i wouldnt take my pension until after 2012.

Maybe but not for sure. Sippdeal have had a notice on their website saying they intend to accept transfers from protected rights funds from October 2008; however they are not in charge and they haven't expanded in the slightest on their two sentence statement.

If it's the case that PR transfers can be made from October 2008 and then all technical differences be abolished in 2012 then what happens to rebates in the meantime? It may be cost effective to make that initial transfer but, if the sipp isn't approved to receive PR contributions, then a separate scheme will be needed to hold relatively small amounts of cash which will be less cost effective to transfer.

A way to go yet I think - after all it's only two years since A-day and pension simplification!

wombat42_2

Official government response to 10/12/2007 consultation will be given here any day now:
http://www.dwp.gov.uk/consultations/2007

Keep 'em peeled :D:D:D:D

dunstonh

That article you first linked looks like its been amended. It makes it clearer that the changes are for later this year.