Self-Invested Personal Pension

Existing pension arrangements

Members may have pension benefits in other pension arrangements, including those already paying benefits or containing protected rights. These could include employer sponsored pension schemes or personal pensions. The assets within these arrangements, including any protected rights benefits, can be used to fund the SIPP and the following possible courses of action should be discussed with a financial adviser.

Transfer the value of the investments in the other arrangement(s) into the SIPP in cash form or by in-specie transfer. This will increase the funds under the member’s control and available for investment.
Assign the other arrangement(s) to become an asset of the SIPP. This increases the overall value of the SIPP and contributions to the other arrangement may continue, unless enhanced protection has been claimed. This option is often taken when there are reasons why it is not appropriate to encash investments. This could include a penalty if the funds are surrendered or the loss of certain rights such as guaranteed annuity rates.
Make the other arrangement paid up, leaving the funds with the existing provider. This option may be preferred if there are severe penalties on the fund if a transfer proceeds, or if there are guaranteed annuity rates attached to the arrangement and the member does not wish it to be assigned.
Continue to run the other arrangement alongside the new SIPP.

This information relates to the Rowanmoor Pensions SIPP.