Uncrystallised funds pension lump sum

Transcription

1 For custors Uncrystallised funds pension lump Paynt instruction Why do I need to ll in this form? This form instructs us to pay so or all of your pension fund, under your Retiready Pension plan with us, to you as an uncrystallised funds pension lump (the lump ), if you et the conditions described on page 2. This form should take about 25 minutes to complete and you ll have to complete 11 sections. Words in bold are described in more detail in the deinitions section at the end of this form. You should complete this form if... You shouldn t complete this form if... you d like part of the value of your plan as a lump. This will be the value stated in section 2 less tax; or you d like the full value of your plan as a lump. This will be the value of your investnts at the ti they are sold together with any amount built-up in the cash facility less tax. Before completing this instruction, please read the conditions on page 2 to make sure you re eligible for this option. Be aware that this option has no cancellation rights once we ve made the paynt to you, it can t be reversed and paid back to us. your pension cos from a pension credit you received following a divorce, where your ex spouse or civil partner has already their beneits; or you don t et the conditions on page 2.

2 Uncrystallised funds pension lump conditions We ve not covered standard lifeti allowance and the various protections that could apply in detail in this form, but you can ind more out about these at aegon.co.uk/lifetiallowance To take your pension fund as a lump, the following conditions must be t: the lump must be paid from a money purchase arrangent; you must have reached the normal minimum pension age, currently 55 (or your protected pension age, if you have one) or the ill-health condition is t; part or all of your lifeti allowance must be available (where a lump is being paid you re 75, you must have enough lifeti allowance left to cover the whole amount of the lump ); the lump must be provided from uncrystallised funds; if you have a lifeti allowance enhancent factor your available tax-free lump must be at least 25% of the amount to be paid as a lump. You can t receive a greater amount of tax-free elent of the lump than the limit on tax-free cash that applies under these protections; and you must not have enhanced protection or primary protection with registered tax-free cash, imdiately the lump is paid. Tax Where the lump is paid you reach age 75, 25% is tax-free and the balance is taxed as pension inco. Where the lump is paid after you reach age 75, provided you have enough lifeti allowance left to cover the lump, 25% is tax-free, and the balance is taxed as pension inco. Where you don t have enough lifeti allowance, 25% of the lump within your available lifeti allowance is tax-free, with the balance being taxed as pension inco. If you complete this form you re acknowledging that: taking a lump from your plan will trigger the money purchase annual allowance (if you ve not already done so). This information is based on our understanding of current taxation law and HM Revenue & Customs (HMRC) practice which may change. The amount of tax you pay will depend on your individual circumstances. How to complete this form In BLOCK CAPITALS using a ballpoint pen. Check which you must send with your form to prove your identity on page 7. Find deinitions for highlighted terms on page 11. Read more about the lump option by visiting Your Retirent Planner website at aegon.co.uk/ retirentplanner Find impartial guidance and information on your options at retirent at pensionwise.gov.uk Return your completed form and identity docuntation to: Retiready Support Platform Client Services Aegon Edinburgh Park Edinburgh EH12 9SE You may also want to seek regulated inancial advice completing this paynt instruction. paynt instruction Page 2 / 12

3 1 Title (Mr/Mrs/Miss/Ms/Other please specify) Full forena(s) Surna Date of birth (dd/mm/yyyy) Pension plan number Contact phone number Do you have a protected pension age?, it s Do you have fixed or individual protection?, please tick the one that applies to you and if you have individual protection 2014 or individual protection 2016 please provide the relevant amount, Fixed protection 2012 Fixed protection 2014 Fixed protection 2016 Individual protection 2014 relevant amount Individual protection 2016 relevant amount If you ve not already done so, please supply a copy of the appropriate certificate received from HMRC or, where no certificate has been received, provide the reference number you were given by HMRC. Reference number (if applicable) We may use your or phone number to contact you about your instruction. 2 You must make sure that there s enough cash available in the cash facility paynt of the lump is made. Do you want a full or partial paynt? Full paynt Partial paynt amount tax paynt instruction Page 3 / 12

4 3 s 6 pril Do you have any annuities and/or pensions in paynt 6 April 2006? go to 3.2, provide the yearly amount of pre-6 April 2006 pension in the table below. Pension provider Yearly amount at date of first benefit crystallisation event (BCE) on 6/4/2006 ( ) Date of first BCE on 6/4/2006 (dd/mm/yyyy) Please see the table below for more information on the yearly amount you should give us. At the ti of the first BCE on 6/4/2006, the pre-6/4/2006 pension/annuity was: Lifeti annuity or sche pension Capped drawdown Amount to be entered Gross yearly pension in paynt at ti of the first BCE on/after 6 April The maximum permitted yearly drawdown pension in force at the ti of the first BCE on 6 April Date of first BCE This will be a date on 6 April This will be a date on 6 April Flexible drawdown or Flexi-access drawdown that had, on 5 April 2015, been a flexible drawdown arrangent Flexi-access drawdown that had been converted from a capped drawdown arrangent The maximum permitted yearly drawdown pension that would have applied to the arrangent in the year it beca a flexible drawdown arrangent had the arrangent been a capped drawdown arrangent instead of a flexible drawdown arrangent. The maximum permitted yearly pension that applied to the arrangent in the year in which it beca a flexi-access drawdown arrangent (so while it was a capped drawdown arrangent). This will be a date on 6 April This will be a date on 6 April This will be a date on 6 April If this is your first BCE since 6 April 2006 then the date of event you show in the table is the date you complete and sign this form. 3.2 If you took a pension comncent lump 6 April 2006 and put off receiving paynt of the pension until after 5 April 2006, please tell us the amount you received: Amount of pension comncent lump ( ) Date received (dd/mm/yyyy) paynt instruction Page 4 / 12

5 4 s 6 pril 2006 Have you any benefits from a registered pension sche on 6 April 2006? go to section 5 for each BCE give the percentage of the standard lifeti allowance used up by that event (as advised by the sche administrator and/or the insurance company providing the lump, pension or annuity). Don t include to a qualifying recognised overseas pension sche as these are covered in section 6. If you ve been granted primary protection, please also insert the amount crystallised. Sche na % of standard lifeti allowance Amount crystallised (Primary protection holders only) ( ) Date (dd/mm/yyyy) 5 s you re from other pension plans Will you be taking benefits from any other pension plans between now and the date of the event under this plan? go to section 6 complete the table below: Sche na Proposed BCE date (dd/mm/yyyy) % of standard lifeti allowance to be used We need to know the amount of standard lifeti allowance that you ve used. We ll include the value of any benefits being the lump is paid and exclude any after. Where other benefits are at the sa ti as the event under this plan, please tick below to show if these should be included in or excluded from our calculations. Sche 1 Include Exclude Sche 2 Include Exclude Sche 3 Include Exclude Sche 4 Include Exclude paynt instruction Page 5 / 12

6 6 Have you completed any overseas on 6 April 2006 to qualifying recognised overseas pension sches or will you make any the date that we pay your first benefit? go to section 7 please give in the table below: pension sche na Date of transfer (dd/mm/yyyy) Transfer amount ( ) % of standard lifeti allowance used by this transfer 7 We can only pay beneits directly to a UK bank or building society. If you re unable to set up a UK bank or building society account, please contact us. If this is the irst ti that you ve given us these bank, please attach a certi ed copy of your bank statent for this account. See page 7 for more information. Please give us your bank for the account you want us to pay the lump to. It must be a personal account in your na or where you are a joint account holder. /Building society na Address Sort code Na of account holder(s) Postcode Roll number (for building society accounts only) Account number paynt instruction Page 6 / 12

7 8 We must conirm your identity when you take your pension beneits we can t process your paynt instruction without doing this. That s why we ask you to send us certain. Please send us certi ed copies of your not originals. We require two items to conirm your identity. Please tick the that you re sending us. A postal bank statent or a bank statent obtained from your branch for the account we re paying beneits to. The bank statent must show your ho address and have been received in the last 12 months. (The postal statent must have been sent to your ho address. The bank statent obtained from your branch must show it was printed or stamped in branch.) One of the following items (please tick your choice) + Current passport Current photo card driving licence (full or provisional) National identity card Identity card issued by the Electoral Ofice for rthern Ireland If you can t provide one of the four items shown in the box above, then we require one docunt from list A and one from list B. List A (tick one) Current (old pre-photo card style) full UK driving licence Birth certiicate Proof of beneit entitlent in the last 12 months HM Revenue & Customs (HMRC) tax notiication quoting National Insurance number sent to your ho address List B (tick one) Current council tax demand letter or statent received in the last 12 months Credit card statent received in the last 12 months Mortgage statent received in the last 12 months Local authority rent card or tenancy agreent Who can certify a docunt and how do they do it? Copies of can be certi ed by one of the following people: solicitors doctors/dentists ministers of religion social workers teachers credit union employees Post Ofice oficial (through the Post Ofice s certiication service) accountants bank/building society employees barristers/solicitors/ paralegals councillors inancial advisers justice of the peace serving police oficer mber of Parliant The person certifying your docunt should write the following on the copy docunt: their na in block capitals; the na of the company they work for and their occupation; the statent I certify this to be a true likeness of the original ; and their signature and date. paynt instruction Page 7 / 12

8 9 We can t progress your claim unless this section is completed. Before you make a decision about taking your beneits, it s important to understand the main risks related to withdrawing money from your pension pot. You can also visit Your retirent planner where you ll get tailored risk warnings speciic to you by answering the questions on the Make it happen section. 9.1 Have you received guidance from Pension Wise? There s a risk you may choose an option that doesn t suit your needs. Accessing your pension savings is an important decision and we would always recomnd that you seek guidance. 9.2 Have you received advice from an adviser? We recomnd that you seek advice from a inancial adviser if you aren t sure if this is the right option for you. 9.3 Are you aware that taking so or all of your pension fund as a lump will use up beneits under your plan and you ll get reduced paynts or, if you take all of your pension fund as a lump, no further paynts from your plan? Taking part of your pension plan as a lump ans that the beneits being paid at a later date will be reduced as your pension pot will be reduced. Taking a full lump from your pension plan ans that no further beneits can be paid from it at a later date when you may require it, you should consider the impact this will have on your retirent plans. 9.4 Are you aware that any guarantees attached to your existing plan would be lost? There s a risk that you ll lose your right to any guarantee which may reduce the level of inco you receive in retirent. You should make sure that you understand the conditions of any guarantee making a decision. 9.5 Are you aware that you ll pay tax if you take a lump from your pension savings and this may take you into a higher tax bracket? There s a risk that after tax is deducted you may not get as much as you were expecting. The amount you withdraw and any other inco that you receive may result in you paying higher rate tax or even owing additional tax. paynt instruction Page 8 / 12

9 9 continued 9.6 re you conident that withdrawing money out of your pension pot will still let you have your desired lifestyle in retirent? There s a risk you may run out of money, so you must make sure that you invest wisely or budget effectively. You should also consider any state pension you may be entitled to you can ind of this at gov.uk/new-state-pension 9.7 Are you aware of the impact withdrawing money from your pension plan may have on any outstanding debts? If you owe money there s a risk that your lender may be entitled to your pension savings when you take it as inco. 9.8 Are you aware that pension scams are on the increase following the pension freedoms? There s a risk you may be targeted by individuals and groups operating investnt scams. These can look and sound believable, often promising low risk, high return options. If you ve any doubts you should seek inancial advice from a regulated inancial adviser committing. For more information on this visit: scamsmart.fca.org.uk 9.9 re you aware that taking cash from your pension pot may impact ans tested beneits? There s a risk that taking your inco may result in the loss of any ans tested beneits you currently receive or may be eligible for at so point in the future Have you investigated fully any charges associated with any planned investnt? There s a risk that any charges payable on future investnts may be more than those you re currently paying on your pension savings. paynt instruction Page 9 / 12

10 10 In this declaration I ans the investor detailed in section 1 and you ans Scottish Equitable plc as the sche administrator of the Aegon Self Invested Personal Pension Sche (the Sche ) I instruct you to pay the amount of the fund under the plan detailed in section 2, less tax, to as a lump At the ti of the paynt, I ll have reached my normal minimum pension age, currently 55 (or my protected pension age, if I have one) or the illhealth condition is t Where I m under the age of 75 when the lump is paid, I declare that I have enough lifeti allowance left to cover the lump I declare that I don t have enhanced or primary protection with registered taxfree cash imdiately the lump is paid Where I m over age 75 when the lump is paid, I declare that all or part of my lifeti allowance is available Where I have an enhancent factor my available lump allowance is at least 25% of the amount to be paid as a lump I agree that if, for any reason, all or part of the cash-in/surrender value shown on the quote for the plan detailed in section 1 is more than my available lifeti allowance and this results in the sche administrator being liable for a lifeti allowance charge (or an increase in the lifeti allowance charge) and penalties and/or interest to HMRC, that I ll be responsible for and liable to pay to the sche administrator, a equal to the amount of that lifeti allowance charge (or for any increase in that lifeti allowance charge) and any penalties and interest charged by HMRC and any interest charged by the sche administrator I acknowledge that you ll rely on this declaration, and confirm that if a lump paynt made to in connection with this request results in you becoming liable for a sche sanction charge and penalties and/or interest to HMRC, that I ll be responsible for and liable to you, a equal to the amount of that sche sanction charge, any penalties and interest charged by HMRC and any interest charged by the sche administrator I agree that any due may be deducted from any arrangents for or in respect of under the Sche I confirm that I ve read the appropriate risk warnings related to my answers given in section 9 and still want to go ahead with the option of taking a lump. Date (dd/mm/yyyy) Investor signature 7 7 Before returning this form to us, please check: You ve included the required certiied copies of. You ve completed all of section 9 and read the risk warnings. You ve signed and dated the above. We can t process your instruction until you ve t these requirents paynt instruction Page 10 / 12

11 11 Deinitions We ve not covered standard lifeti allowance, and the various protections that could apply in detail in this form, but you can find more about these at aegon.co.uk/lifetiallowance Benefit crystallisation event (BCE) Your pension funds must be tested against your available lifeti allowance if there s a BCE. A BCE includes the following: using funds in a money purchase arrangent to provide drawdown pension (capped or flexi-access); becoming entitled to a lifeti annuity under a money purchase arrangent; reaching age 75 with funds in drawdown pension (capped or flexi-access) under a money purchase arrangent; reaching age 75 with remaining unused funds under a money purchase arrangent; or becoming entitled to an uncrystallised funds pension lump, reaching age 75. Ill-health condition This is t if we ve received satisfactory dical evidence from a registered dical practitioner that you are (and will continue to be) incapable of carrying on your occupation because of physical or ntal impairnt and you have in fact stopped carrying out that occupation. Interest Will be added on a daily basis to any amount due to the sche administrator for any sche sanction charge. It will be calculated on a daily basis from the date the first paynt was due at the Royal of Scotland plc base rate plus 5%. Money purchase annual allowance The amount that can be paid by or for you into money purchase arrangents without a tax charge arising may be restricted to the money purchase annual allowance, which from 6 April 2017 is 4,000. The restriction applies if you had a flexible drawdown plan at any ti 6 April It also applies if you take (or have already ) certain types of pension benefit, including an uncrystallised funds pension lump or inco from a flexi-access drawdown plan. Special rules apply in the year that the money purchase annual allowance rules first apply to you, please speak to a financial adviser for more information. Qualifying recognised overseas pension sche This is a recognised overseas pension sche that ets conditions set by HMRC so that it can take a transfer paynt from a registered pension sche. Recognised overseas pension sche A pension sche which is established in a country or territory listed in the Pension Sches (Categories of Country and Requirents for Pension Sches and Recognised Pension Sches) Regulations An overseas pension sche may also be a recognised overseas pension sche if it s of a description prescribed in those regulations, or if it satisfies any requirent in those regulations. Registered pension sche Is a pension sche that s registered with HMRC under Chapter 2 Part 4 of the Finance Act Registered tax-free cash If your total tax-free cash entitlent as at 5 April 2006 was more than 375,000, you could have registered to protect the uncrystallised part of this tax-free cash entitlent at the sa ti as registering for primary protection and/or enhanced protection. Your registered tax-free cash amount, or percentage, will be shown on your primary protection or enhanced protection certificate. paynt instruction Page 11 / 12

12 11 Deinitions continued Uncrystallised funds pension lump This is a lump paid to you from a money purchase arrangent on 6 April 2015 which ets certain conditions. Your pension provider or sche administrator will have made you aware of any paynt to you that s an uncrystallised funds pension lump. If you have any questions, call us on or go online at aegon.co.uk/onlineform Retiready and Aegon are brand nas of Scottish Equitable plc (. SC144517) and Aegon Investnt Solutions Ltd (. SC394519) registered in Scotland, registered ofice: Edinburgh Park, Edinburgh, EH12 9SE. Both are egon companies. Scottish Equitable plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Aegon Investnt Solutions Ltd is authorised and regulated by the Financial Conduct Authority. Their Financial Services Register numbers are and respectively Aegon UK plc RETR /17