22 June 2007
The news item on 'More Freedom for Protected Rights Funds?'
dated 12 June 2007, is replaced by the following news item:
The Department for Work and Pensions (DWP) are proposing to
remove the investment restriction for protected rights funds.
Currently, legislation does not allow protected rights funds to be
self-invested under a Self Invested Personal Pension (SIPP). DWP
proposals would allow a greater investment choice by allowing
protected rights to be self-invested.
The DWP plan to consult on this later in 2007. The change could
be introduced in 2008, depending on the consultation and
Parliamentary processes.
On the more general protected rights changes in the current
Pensions Bill:
The DWP are also proposing to remove many of the rules that
would otherwise apply to protected rights funds that build up
before contracting out on a defined contribution basis (i.e.
contracted-out money purchase rights) is abolished, which is
scheduled for 2012, at the earliest. The changes to the protected
rights rules are linked to the abolition date.
The requirement for people who are married or a civil partner to
purchase a joint life annuity is currently being retained. However
a final decision on this will be taken in light of the conclusions
of the review of the operation of the Open Market Option for
annuities.
