Uncrystallised funds pension lump sum

Transcription

1 For customers Uncrystallsed funds penson lump sum Payment nstructon What does ths form do? Ths form nstructs us to pay the full penson fund, under your non-occupatonal penson scheme plan wth us, to you as an uncrystallsed funds penson lump sum (the lump sum ), f you meet the condtons descrbed on page 2. Is ths the rght form for you? Ths form sn t for you You should complete ths form f you d lke to take all your uncrystallsed funds from your plan as a lump sum, and: you have receved a quote from us, tellng you the o optons avalable to you o current cash-n/surrender value of your plan o amount of tax payable Before completng ths nstructon, please read the condtons on page 2 to make sure you re elgble for ths opton.! Be aware that ths opton has no cancellaton rghts once we ve made the payment to you, t can t be reversed and pad back to us. You shouldn t complete ths form f you: have not receved a quote from us detalng the cash-n/surrender value of your plan and amount of tax payable have not fully explored the optons avalable to you don t meet the condtons on page 2 have enhanced protecton or prmary protecton wth regstered tax free cash. Before you contnue, complete the followng checklst: I have been made aware of my penson optons and tax mplcatons. In addton, I have receved: 1. regulated advce from a fnancal advser* Yes No 2. gudance from Penson Wse* Yes No 3. retrement rsk warnngs specfc to the opton I have selected** Yes No * If you answer No, we ll stll progress your clam. However, we recommend that you take ndependent fnancal advce and vst pensonwse.co.uk ** You can revew the rsk warnngs at aegon.co.uk/retrementplanner and n the leaflet at the end of ths form.

2 1 Uncrystallsed funds penson lump sum condtons To take your penson fund as a lump sum, the followng condtons must be met: the lump sum must be pad from a money purchase arrangement you must have reached the normal mnmum penson age, currently 55 (or your protected penson age, f you have one) or the ll-health condton s met part or all of your lfetme allowance must be avalable (where a lump sum s beng pad before you are 75, you must have enough lfetme allowance left to cover the whole amount of the lump sum) the lump sum must be provded from uncrystallsed funds f you have a lfetme allowance enhancement factor (arsng from prmary protecton, a penson credt from prevously crystallsed rghts, non-resdence arrangements, transfers from overseas penson schemes or pre-commencement penson credts), your avalable lump sum allowance (the amount of tax-free cash you can have) must be at least 25% of the amount to be pad as a lump sum. You can t receve a greater amount of tax-free element than the lmt on tax-free cash that apples under these protectons. Where such enhancements apply, taxfree cash s 25% of your avalable standard lfetme allowance and not 25% of your avalable lfetme allowance. you must not have enhanced protecton or prmary protecton wth regstered tax-free cash, mmedately before the lump sum s pad. If you complete ths form you are acknowledgng that: takng a lump sum from your plan wll trgger the money purchase annual allowance (f you ve not already done so) f you ve nvested n a wth profts fund and you want to take benefts before your selected retrement age: o the cash-n/surrender value of your penson may be reduced by a market value reducton or a smoothng adjustment we may take a cash-n/surrender charge from your fund your quote wll contan the full detals. The actual amount you ll receve wll be the value of your penson fund on the second busness day followng the date we receve all necessary documents from you to process your nstructon, less any tax we have to deduct. 2 How to complete ths form use BLOCK CAPITALS and a ballpont pen check whch certfed documents you must send wth your form to prove your dentty on page 4 fnd defntons for hghlghted terms on page 6 read more about the lump sum opton by vstng Your Retrement Planner webste at aegon.co.uk/ retrementplanner fnd mpartal advce and nformaton on pensons at pensonwse.gov.uk you may also want to seek further ndependent fnancal advce before completng ths payment nstructon. Return your completed form and dentty documentaton to: Aegon Freepost EH1218 Ednburgh EH12 0BR Lump sum payment nstructon Page 2 / 7

3 Attach a certfed copy of your passport or photo drvng lcence as evdence of your age and dentty wth your completed form. See page 4 for what to send us f you don t have one of these documents. 3 Personal detals Ttle (Mr/Mrs/Mss/Ms/Other please specfy) Full forename(s) Surname Date of brth (dd/mm/yyyy) Contact phone number Plan number Natonal Insurance number Do you have a protected penson age? No Yes, what s t? We may use your phone number to contact you about your nstructon. Please provde your bank detals for a personal account n your name or where you are a jont account holder. Attach a certfed copy of your bank statement receved wthn the last 12 months for ths account when you return the form. See page 4 for what to send us f you don t have ths document. 4 Bank detals Bank/Buldng socety name Address Postcode Sort code Account number Name of account holder(s) Buldng socety roll number (f applcable) What does certfed copy mean? Ths s a copy of a document whch has been certfed by a certan person that t s a true copy of the orgnal. These are requred so that we can progress your nstructon to us. Please make sure you attach the correct certfed documents to avod delays n the processng of your nstructon. For a full lst of people who can certfy your documents, and what they need to do, see page 4. Lump sum payment nstructon Page 3 / 7

4 5 Documents needed to confrm your dentty We must confrm your dentty when you take your penson benefts we can t process your payment nstructon wthout dong ths. That s why we ask you to send us certan documents. However, please send us copes of your documents, not orgnals. What you need to do next... You can choose one of two optons for confrmng your dentty. Please tck the documents that you re sendng us. Opton 1 Send us a postal bank statement or a bank statement obtaned from your branch (showng t was prnted or stamped n branch). The postal statement must have been sent to, and also show, your home address. We also need one of the followng documents: Current passport Current photo card drvng lcence (full or provsonal) Natonal dentty card Identty card ssued by the Electoral Offce for Northern Ireland. Opton 2 Send us a postal bank statement or a bank statement obtaned from your branch (showng t was prnted or stamped n branch). The postal statement must have been sent to, and also show, your home address. We also need one document from lst A and one from lst B Lst A Current (old pre-photo card style) full UK drvng lcence Brth certfcate Proof of beneft enttlement n the last 12 months Inland Revenue tax notfcaton quotng Natonal Insurance number sent to your home address. Lst B Current councl tax demand letter or statement receved n the last 12 months Credt card statement receved n the last 12 months Mortgage statement receved n the last 12 months Local authorty rent card or tenancy agreement. Who can certfy a document and how do they do t? Copes of documents can be certfed by one of the followng people: solctors doctors/dentsts mnsters of relgon socal workers teachers credt unon employees post offce offcal (through the post offce s certfcaton servce) accountants bank/buldng socety employees barrsters/solctors/ paralegals councllors fnancal advsers justce of the peace servng polce offcer member of Parlament. The person certfyng your document should wrte the followng on the copy document: ther name n block captals the name of the company they work for and ther occupaton the statement I certfy ths to be a true lkeness of the orgnal, and ther sgnature and date. Lump sum payment nstructon Page 4 / 7

5 6 Declaraton In ths declaraton I means the ndvdual detaled n secton 3 and you means Scottsh Equtable plc as Scheme Admnstrator of the Scottsh Equtable Personal Penson Scheme, the Scottsh Equtable Self-admnstered Personal Penson Scheme, the Scottsh Equtable Stakeholder Penson scheme, a secton 32 Buyout polcy and/or a Trustee Proposed secton 32 Buyout polcy (the Scheme ). 6.1 I nstruct you to pay the whole fund under the plan numbered n secton 3 (the Plan ), less tax, to me as a lump sum. 6.2 I decare that at the tme of the payment, I wll have reached the normal mnmum penson age, currently 55 (or my protected penson age, f I have one) or the ll-health condton s met. 6.3 I declare that when the lump sum s pad, I have enough lfetme allowance left to cover the lump sum. 6.4 I declare that I do not have enhanced protecton or prmary protecton wth regstered tax-free cash mmedately before the lump sum s pad. 6.5 Where I have an enhancement factor my avalable lump sum allowance s at least 25% of the amount to be pad as a lump sum. 6.6 I agree that f, for any reason, all or part of the cashn/surrender value shown on the quote for the Plan s more than my avalable lfetme allowance and ths results n the scheme admnstrator beng lable for a lfetme allowance charge (or an ncrease n the lfetme allowance charge) and penaltes and/ or nterest to HMRC, that I ll be responsble for and lable to pay to the scheme admnstrator, a sum equal to the amount of that lfetme allowance charge (or for any ncrease n that lfetme allowance charge) and any penaltes and nterest charged by HMRC and any nterest charged by the scheme admnstrator. 6.7 I acknowledge that you wll rely on ths declaraton, and confrm that f a lump sum payment made to me n connecton wth ths request results n you becomng lable for a scheme sancton charge and penaltes and/or nterest to HMRC, that I wll be responsble for and lable to pay to the scheme admnstrator, a sum equal to the amount of that scheme sancton charge, any penaltes and nterest charged by HMRC and any nterest charged by the scheme admnstrator. 6.8 I agree that any sum due may be deducted from any arrangements for or n respect of me under the Scheme. Date (dd/mm/yyyy) Planholder s sgnature Before returnng ths form to us, please check: You have ncluded the requred certfed documents we can t process your nstructon wthout these You have read the rsk warnngs and tcked the relevant box on page 1 You have sgned and dated the Declaraton above Lump sum payment nstructon Page 5 / 7

6 7 Defntons Enhanced protecton provdes full protecton from the lfetme allowance charge for the value of the whole of your penson rghts bult up as at 5 Aprl 2006, regardless of subsequent growth. Fxed protecton 2012 at 6 Aprl 2012 the standard lfetme allowance reduced from 1.8 mllon to 1.5 mllon. Fxed protecton 2012 mantans the standard lfetme allowance at 1.8 mllon and provdes protecton aganst the lfetme allowance charge for benefts up to ths level. If the standard lfetme allowance rses above 1.8 mllon n the future the hgher standard lfetme allowance wll apply. Fxed protecton 2014 at 6 Aprl 2014, the standard lfetme allowance reduced from 1.5 mllon to 1.25 mllon. Fxed protecton 2014 mantans the standard lfetme allowance at 1.5 mllon and provdes protecton aganst the lfetme allowance charge for benefts up to ths level. If the standard lfetme allowance rses above 1.5 mllon n the future the hgher standard lfetme allowance wll apply. Ill-health condton the ll-health condton s met f we have receved satsfactory medcal evdence from a regstered medcal practtoner that you are (and wll contnue to be) ncapable of carryng on your occupaton because of physcal or mental mparment. In addton, you must no longer be carryng on that occupaton. Indvdual protecton 2014 at 6 Aprl 2014 the standard lfetme allowance reduced from 1.5 mllon to 1.25 mllon. Indvdual protecton 2014 mantans the standard lfetme allowance at whchever s the lower of the value of the ndvdual s pensons savngs as at 5 Aprl 2014 and 1.5 mllon, and provdes protecton aganst the lfetme allowance charge for benefts up to ths level. If the standard lfetme allowance rses above the ndvdual protecton 2014 level n the future, the hgher standard lfetme allowance wll apply. Interest nterest wll be added on a daly bass to any amount due to the scheme admnstrator for any lfetme allowance charge and/or scheme sancton charge. It wll be calculated on a daly bass from the date the frst payment was due at the Royal Bank of Scotland plc base rate plus 5%. Lfetme allowance s the lmt that apples to the total value of tax-prvleged pensons savngs you can have across all approved or regstered penson schemes. Unless you have enhanced protecton, when benefts are taken, savngs above that level may attract a lfetme allowance charge. If you don t have enhanced protecton, you ll have ether a personal lfetme allowance or a standard lfetme allowance. Lfetme allowance charge when you take benefts, f your pensons savngs are more than your lfetme allowance, unless you have enhanced protecton, the excess s subject to ths charge. Ths tax s 55% f the excess s taken as a lump sum and 25% f the excess s used to buy a penson. The penson ncome s also taxed under the Pay As You Earn (PAYE) system. Market value reducton where the plan s nvested n one of our wth profts type funds and f the money s wthdrawn at any tme other than the chosen retrement date, t may be necessary to reduce the value of the fund by what s referred to as a market value reducton. Money purchase annual allowance where ths apples to you, ths s the amount that can be pad n one year to your money purchase arrangements wthout a tax charge applyng. For the 2015/2016 tax year ths s 10,000. If the money purchase annual allowance provsons apply to you, and durng the year more that 10,000 has been pad to your money purchase arrangements under all of your regstered penson schemes, a tax charge: wll apply on the money purchase contrbutons above 10,000, and may apply on the value of any savngs made to defned beneft arrangements that are hgher than 30,000 plus any carry forward you have avalable. Specal rules apply n the year that the money purchase annual allowance rules frst apply, please speak to a fnancal advser for more nformaton. Lump sum payment nstructon Page 6 / 7

7 7 Defntons (contnued) Non-occupatonal penson scheme s a contractbased penson scheme, such as a: Personal penson Group Personal penson Stakeholder penson Group Stakeholder penson Group Self-nvested Personal penson Secton 32 buyout, or Trustee proposed secton 32 buyout Personal lfetme allowance where you ve regstered wth HMRC for certan types of protecton you ll have an enhancement to the standard lfetme allowance. Ths ncreased amount s your personal lfetme allowance. Prmary protecton f you d bult up penson rghts of more than 1.5 mllon at 5 Aprl 2006, prmary protecton offers a means of protectng the excess benefts. Your 5 Aprl 2006 value regstered wth HMRC s ncreased n lne wth the rse n the standard lfetme allowance up untl you take your benefts. The calculaton of enhanced lfetme allowance for prmary protecton s not affected by the reductons of standard lfetme allowance that took place on 6 Aprl 2012 and 6 Aprl Regstered penson scheme s a penson scheme that s regstered wth HMRC under Chapter 2 Part 4 of the Fnance Act Regstered tax-free cash f your total tax-free cash enttlement as at 5 Aprl 2006 was more than 375,000, you could have regstered to protect the uncrystallsed part of ths tax-free cash enttlement at the same tme as regsterng for prmary protecton and/or enhanced protecton. Your regstered tax-free cash amount or percentage wll be shown on your prmary protecton or enhanced protecton certfcate. Smoothng adjustment f your polcy s nvested n one of our wth profts funds, f you take money out at any tme, we may apply a smoothng adjustment. Ths can be a smoothng ncrease whch ncreases the value of the fund or a smoothng reducton whch reduces the value of the fund. Standard lfetme allowance s the value of penson benefts an ndvdual can buld up before a lfetme allowance charge s appled. The current standard lfetme allowance s: 1.8 mllon f you have fxed protecton mllon f you have fxed protecton 2014 The protected amount (beng more than 1.25 mllon and not more than 1.5 mllon) f you have ndvdual protecton mllon f you don t have fxed protecton 2012, fxed protecton 2014 or ndvdual protecton Uncrystallsed funds these are penson funds whch have not, as yet, been used to provde benefts under a penson plan. Aegon s a brand name of Scottsh Equtable plc. Scottsh Equtable plc, regstered offce: Ednburgh Park, Ednburgh EH12 9SE. Regstered n Scotland (No ). Authorsed by the Prudental Regulaton Authorty and regulated by the Fnancal Conduct Authorty and the Prudental Regulaton Authorty. Fnancal Servces Regster number An Aegon company Aegon UK plc C RET /15 Lump sum payment nstructon Page 7 / 7

8 Before you apply cash lump sum rsks Before you apply, t s mportant to understand the man rsks assocated wth the dfferent lump sum optons avalable. Please read the questons below carefully and fully nvestgate any that you thnk may apply to you before you act. Have you taken advce or gudance from a fnancal advser or Penson Wse? There s a rsk that you may choose an opton that doesn t sut your needs. Ths s an mportant decson and Aegon would always recommend that you seek advce or gudance to ensure that you fully understand your optons. Are you aware that you wll pay tax on ths opton and ths may take you n to a hgher rate tax bracket? There s a rsk that after tax s deducted you may not get as much as you were expectng. The amount you wthdraw and other ncome you receve may result n you payng hgher rate tax or even owng addtonal tax. Are you confdent that ths opton plus any other savngs or ncome wll allow you to sustan your desred lfestyle n retrement? There s a rsk that you may run out of cash. The state penson s only per week (Aprl 2015), therefore you must make sure that you nvest wsely or budget effectvely. Remember, average lfe expectancy s 79 for males and 82 for women! Do you have any guarantees bult n to your current contract? There s a rsk that you wll lose your rght to any guarantee whch may reduce the level of ncome you receve n retrement. You should make sure you understand the condtons of any guarantee before makng a decson.

9 Do you have any debt? If you owe money, there s a rsk that your lender may be enttled to your penson savngs when you take t as ncome. Are you concerned about nvestment scams? There s a rsk that you may be targeted by ndvduals or groups operatng nvestment scams. Investment scams can look and sound belevable often promsng low rsk, hgh return optons. If you ve any doubts you should seek fnancal advce from a regulated fnancal advser before commttng. For more nformaton on ths please vst fca.org.uk/news/as-new-pensonfreedoms-arrve-be-scamsmart Do you clam any means tested benefts? There s a rsk that takng your ncome may result n the loss of any means tested benefts you currently receve or may be elgble for at some pont n the future. Are you aware of the charges assocated wth any planned nvestment? There s a rsk that charges payable on any future nvestments may be greater than those currently pad on your penson savngs. Please carefully consder any rsks that apply to you before you proceed. If you have any questons, emal us at enqures@aegon.co.uk, or call us on Aegon s a brand name of Scottsh Equtable plc. Scottsh Equtable plc, regstered offce: Ednburgh Park, Ednburgh EH12 9SE. Regstered n Scotland (No ). Authorsed by the Prudental Regulaton Authorty and regulated by the Fnancal Conduct Authorty and the Prudental Regulaton Authorty. Fnancal Servces Regster number An Aegon company Aegon UK plc C RET /15