Benefit crystallisation event application form (capped drawdown)

Transcription

1 For customers Benefit crystallisation event application form (capped drawdown) This form should only be used if you re making an additional designation into an existing capped drawdown account or choosing an annuity. If you need help completing this form, speak to your adviser. Your adviser will be able to provide you with an illustration. This form has two parts: Part 1 Applying for benefits Part 2 Benefits you ve taken When completed return the form to Platform Client Services, Aegon, Edinburgh Park, Edinburgh, EH12 9SE. Words in bold are defined terms that we explain in the Definitions section at the end of this form. Please complete this form in BLOCK CAPITALS and ballpoint pen. Part 1. Applying for benefits 1. Investor details Full forename(s) Date of birth (dd/mm/yyyy) Surname Investor number Pension plan number Are you entitled to any of the following types of protection: enhanced, primary, fixed (2012 or 2014), individual 2014, or have you an enhancement to your lifetime allowance, for example, for a pension credit following a divorce or as a result of a transfer in from a recognised overseas pension scheme? No Yes Please provide us with a copy of your protection certificate if you haven t already done so Page 1 of 7

2 2. Benefit options for uncrystallised investments Any pension commencement lump sum requested will be paid to the bank/building society account you ve provided details of below. 2.1 I want to (please select one): fully crystallise my pension plan to provide a drawdown pension (complete sections 2.2 and 3). crystallise of my pension plan to provide a drawdown pension (complete sections 2.2 and 3). The amount given should include any PCLS if applicable. fully crystallise my pension plan and complete an annuity transfer. crystallise of my pension plan and complete an annuity transfer. The amount given should include any PCLS, if applicable. 2.2 Do you want to take a pension commencement lump sum payment? Yes, pay me the maximum allowed Yes, pay me No Please note the maximum you can choose to take is normally 25% of the total value of your pension pot(s). If you ve applied for an annuity transfer, we can t pay the PCLS until we ve received the documentation for your transfer. 3. Income withdrawal options Only one income withdrawal instruction can be recorded against each of your drawdown arrangements. This will replace any existing instruction for this arrangement so the annual gross income value should include any current payments. Do you want to take an income? No go to section 4 Yes complete sections 3.1 and Capped drawdown A gross yearly income of A gross yearly income of instalments. to be paid in monthly / quarterly / annual instalments. % of the maximum capped drawdown allowed to be paid in monthly / quarterly / annual A gross ad hoc payment of 3.2 Which month would you like your income payments to start? (mm/yyyy) You don t need to complete this section if you re taking an ad hoc payment. This will start on the 9th of You must make sure there s enough cash available in the cash facility before payment of the lump sum is made. Benefit crystallisation event application form Page 2 of 7

3 4. Bank details Please give us details of your bank account to which you would like payment to be made. The bank details should be for a personal account in your name or one where you are a joint account holder. If this is the first time you ve given us these bank account details, please enclose a certified copy of a bank statement for this account with this instruction. * Provide details of your bank/building society current account that we ll use to make payments to you. Name of bank/building society Building society client number Branch sort code Account name Account number Building society roll number (if applicable) Part 2 Benefits you ve taken Payments to building society accounts may take up to 10 business days longer than payments to bank accounts. Your answers to the following questions will give us the information we need to determine any lifetime allowance charge that you may be liable for. If your total funds from all your pensions aren t more than your lifetime allowance, you won t have to pay this tax charge. From 6 April 2014 the standard lifetime allowance is 1,250,000, if you don t have fixed protection 2012, fixed protection 2014 or individual protection Benefits taken before 6 April Do you have any annuities and/or pensions in payment before 6 April 2006? No go to 5.2 Yes, provide details in the table below. n For each lifetime annuity or scheme pension in payment on 5 April 2006, give the yearly amount as the gross yearly pension amount you were receiving from the specified provider on your first benefit crystallisation event on or after 6 April n If you were taking income from a drawdown arrangement with the specified provider on 5 April 2006, give the yearly amount as the maximum permitted yearly drawdown pension in force at the time of your first benefit crystallisation event on or after 6 April n If this is your first benefit crystallisation event since 6 April 2006, give the yearly amount of pension you re receiving now and/or the current maximum permitted yearly drawdown pension. The date of event is the date that you complete and sign this form. Pension provider Yearly amount Date of event (dd/mm/yyyy) 5.2 If you took a pension commencement lump sum before 6 April 2006 and put off receiving payment of the pension until after 5 April 2006, please let us know the amount you received: Amount of pension commencement lump sum () Date received (dd/mm/yyyy) Benefit crystallisation event application form Page 3 of 7

4 6. Benefits taken on or after 6 April 2006 Have you taken any benefits from a registered pension scheme on or after 6 April 2006? No go to section 7 Yes for each benefit crystallisation event give the percentage of the standard lifetime allowance used up by that event (as advised by the scheme administrator and/or the insurance company providing the lump sum, pension or annuity). Don t include transfers to a qualifying recognised overseas pensions scheme as these are covered in section 8. If you ve been granted primary protection, please also insert the amount crystallised. Name of scheme % of standard lifetime allowance Amount crystallised (Primary protection holders only) Date (dd/mm/yyyy) 7. Benefits you re planning to take from other pension plans Will you be taking benefits from any other pension plans between now and the first date you could take benefits from this drawdown account? No go to section 8 Yes complete the table below Scheme name Proposed benefit crystallisation event date (dd/mm/yyyy) % of standard lifetime allowance to be used We need to know the amount of standard lifetime allowance that has been used in order to work out if your benefits are over your lifetime allowance and if you re liable for a lifetime allowance tax charge. For any benefits being taken at the same date as you could take benefits from this drawdown account, please tick whether the value shown in the third column above should be included or excluded from our calculations. Scheme 1 Include Exclude Scheme 2 Include Exclude Scheme 3 Include Exclude Scheme 4 Include Exclude Benefit crystallisation event application form Page 4 of 7

5 8. Overseas transfers Have you completed any overseas transfers on or after 6 April 2006 to qualifying recognised overseas pension schemes or will you make any before the first date that you take income from your drawdown pension with us? No go to section 9 Yes please give the details in the table below: Name of scheme Date of transfer (dd/mm/yyyy) Transfer amount % of standard lifetime allowance used by this transfer 9. Declaration In this declaration I means the planholder and you means Aegon. 9.1 I authorise you to make payments according to my instructions. I declare that my answers to the questions contained in this application are true to the best of my knowledge and that failure to provide accurate information could result in fines and additional tax charges. 9.2 I declare that my financial adviser has provided me with an illustration. 9.3 I agree that if, for any reason, all or part of the benefits being crystallised under my pension plan are more than my available lifetime allowance and this results in the scheme administrator being liable for a lifetime allowance charge (or an increase in the lifetime allowance charge) and penalties and/or interest to HM Revenue & Customs (HMRC), that I ll be liable to pay to the scheme administrator, a sum equal to the amount of that lifetime allowance charge (or any increase in the lifetime allowance charge) and any penalties and interest charged by HMRC and any interest charged by the scheme administrator. 9.4 I declare that the pension commencement lump sum payment won t be reinvested into any registered pension scheme beyond the limits imposed by HMRC from time to time, and should I decide to make such reinvestment I ll provide full details to the scheme administrator. However, I acknowledge and agree that in the event of any arrangement or action by me, or any other person, which constitutes or results in such a breach of the limits imposed by HMRC and consequently the scheme administrator becoming liable for a scheme sanction charge and penalties and/or interest to HMRC, that I ll be liable to pay to the scheme administrator a sum equal to the amount of that scheme sanction charge, any penalties and interest charged by HMRC and any interest charged by the scheme administrator. Date (dd/mm/yyyy) Signature 7 7 Benefit crystallisation event application form Page 5 of 7

6 10. Definitions Benefit crystallisation event Your pension funds must be tested against your available lifetime allowance if there s a benefit crystallisation event. A benefit crystallisation event is one of the following: n Using funds in a money purchase arrangement to provide drawdown pension (capped or flexi-access). n Becoming entitled to a scheme pension. n Increase in a scheme pension you re already receiving above the permitted margin. n Becoming entitled to a lifetime annuity under a money purchase arrangement. n Reaching age 75 as a member of defined benefits scheme with unvested benefits. n Reaching age 75 with funds in drawdown pension (capped or flexi-access) under a money purchase arrangement. n Reaching age 75 with remaining unused funds under a money purchase arrangement. n Using funds in a money purchase arrangement within two years of the member s death to provide dependants / nominees flexi-access drawdown where the member died before reaching age 75. n Using funds in a money purchase arrangement within two years of the member s death to purchase dependants / nominees annuities, where the member died before reaching age 75. n Becoming entitled to a relevant lump sum, in other words an uncrystallised funds pension lump sum, before reaching age 75, pension commencement lump sum, serious ill health lump sum or lifetime allowance excess lump sum. n Payment of a relevant lump sum on the death of the member. n Transferring to a qualifying recognised overseas pension scheme. n Any event that may in the future be specified in regulations as a benefit. Enhanced protection This provides full protection from the lifetime allowance charge for the value of the whole of your pension rights built up as at 5 April 2006, regardless of any subsequent growth. Fixed protection 2012 At 6 April 2012 the standard lifetime allowance reduced from 1.8 million to 1.5 million. Fixed protection 2012 maintains the standard lifetime allowance at 1.8 million and provides protection against the lifetime allowance charge for benefits up to this level. If the standard lifetime allowance rises above 1.8 million in the future the higher standard lifetime allowance will apply. Fixed protection 2014 At 6 April 2014 the standard lifetime allowance reduced from 1.5 million to 1.25 million. Fixed protection 2014 maintains the standard lifetime allowance at 1.5 million and provides protection against the lifetime allowance charge for benefits up to this level. If the standard lifetime allowance rises above 1.5 million in the future the higher standard lifetime allowance will apply. Individual protection 2014 At 6 April 2014 the standard lifetime allowance reduced from 1.5 million to 1.25 million. Individual protection 2014 maintains the standard lifetime allowance at whichever is the lower of the value of the individual s pensions savings as at 5 April 2014 and 1.5 million, and provides protection against the lifetime allowance charge for benefits up to this level. If the standard lifetime allowance rises above the individual protection 2014 level in the future, the higher standard lifetime allowance will apply. Lifetime allowance This is the limit that applies to the total value of taxprivileged pensions savings you can have across all registered or approved pension schemes. Unless you have enhanced protection, when benefits are taken, savings above that level may attract a lifetime allowance charge. If you don t have enhanced protection, you ll have either a personal lifetime allowance or a standard lifetime allowance. Lifetime allowance charge When you decide to take benefits, if your pension savings are more than your available lifetime allowance, the excess is subject to the lifetime allowance charge. This tax is 55% if the excess is taken as a lump sum and 25% on excess funds used to buy a pension. The pension income is also taxed under the Pay As You Earn (PAYE) system. Personal lifetime allowance Where you ve registered with HMRC for certain types of protection, you ll have an enhancement to the standard lifetime allowance. This increased amount is your personal lifetime allowance. Primary protection If you had built up pension rights of more than 1.5 million as at 5 April 2006, primary protection offers a means of protecting the excess benefits. Your 5 April 2006 value registered with HMRC is increased in line with the rise in the standard lifetime allowance up until you take your benefits. The calculation of enhanced lifetime allowance for primary Benefit crystallisation event application form Page 6 of 7

7 10. Definitions continued protection isn t affected by the reductions of the standard lifetime allowance that took place from 6 April 2012 and 6 April Qualifying recognised overseas pension scheme This is a recognised overseas pension scheme that meets conditions set by HM Revenue & Customs so that it can take a transfer payment from a registered pension scheme. Recognised overseas pension scheme This means a pension scheme which is established in a country or territory listed in the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations An overseas pension scheme may also be a recognised overseas pension scheme if it s of a description prescribed in those regulations, or if it satisfies any requirement in those regulations. Registered pension scheme This means a pension scheme which is registered with HMRC under Chapter 2 Part 4 of the Finance Act Standard lifetime allowance The current standard lifetime allowance is: n 1.8 million if you have fixed protection 2012 n 1.5 million if you have fixed protection 2014 n the protected amount (being more than 1.25 million and not more than 1.5 million) if you have individual protection 2014 n 1.25 million if you don t have fixed protection 2012, fixed protection 2014 or individual protection 2014 Aegon is a brand name of Scottish Equitable plc (No. SC144517) and Aegon Investment Solutions Ltd (No. SC394519) registered in Scotland, registered office: Edinburgh Park, Edinburgh, EH12 9SE. Both are Aegon companies. Scottish Equitable plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Aegon Investment Solutions Ltd is authorised and regulated by the Financial Conduct Authority. Their Financial Services Register numbers are and respectively Aegon UK plc C ARC /15