I am in the process of finding a new home for my personal pension contributions, which have not performed particularly well, especially the so-called ‘protected rights’ element derived from my contracted out contributions.

A couple of years ago, a rumour seemed to emanate from the Government that, under pension simplification, they would be eligible for inclusion in standard self-invested personal pensions (SIPPs), but this has not happened and most SIPP providers will not accept transfers of such investments.

So far, the only exception I have found is the Legal & General Portfolio Plus, which, I believe, enables ‘protected rights’ to be self-invested in 250 unit trusts, including external funds.

I understand that this cannot accept ongoing contributions but, as I have now contracted back in, this is not a problem. However, I would like to know if there are any other SIPPs able to accept ‘protected rights’ that I might consider?

M Vickers, Lowestoft

Donna Bradshaw replies:

While it is correct that protected rights cannot yet be held within a SIPP, the Department of Work and Pensions appears to have accepted the principle. However, the protected rights have to be held separately and are still subject to contracted out rules.

A small number of SIPP providers now accept protected rights, which sit alongside the main SIPP. In addition, there are a number of personal pension providers that give access to a wide range of funds for protected rights, which may be an attractive alternative.

With all investment contracts it is important to weigh up the charges and the fund choices on offer before making a decision. It may well be worth taking advice from a good independent financial adviser as the charges can be complex and their impact dependent on the amount invested.