Since A-Day (6 April 2006) the majority of the rules surrounding protected rights have been aligned with those of non-protected rights. However, there are still a few significant differences that advisers and their clients need to be aware of.

Firstly, if a member has a spouse or civil partner at the time they annuitise then the annuity must provide at least a 50% pension for the spouse or civil partner on the death of the member. In addition to this the annuity rate must be calculated using unisex rates by the insurance company.

It is not possible to phase the purchase of annuities using protected rights monies held in one scheme. 

Protected rights must be recorded separately for reporting purposes and therefore the joint investment of protected rights and non protected rights will not be possible within the SIPP.

Generally they must be held in an insured fund. With the Suffolk Life MasterSIPP this means the protected rights funds are invested in an insurance policy (a trustee investment plan or TIP) with Suffolk Life Annuities Limited. This allows your client to choose the underlying investments within the TIP, just like a SIPP.