Transferring your pension to our SIPP - a step by step guide

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1 Transferring your pension to our SIPP - a step by step guide Transfer in Guide Before you decide to transfer an existing pension into our SIPP, we recommend that you seek the advice of a suitably qualified financial adviser. Please note that neither we, BW SIPP LLP or Investor SIPP Trustees Limited are able to offer advice. This is particularly important when you are considering transferring a Defined Benefit scheme (such as a final salary pension scheme) or a pension that has other safeguarded benefits as these will be lost should you go ahead. Further details of what is required are shown in the FAQ section. You need to also be aware of any charges or penalties that may apply to leave your existing provider. Our pension transfer checkpoints (overleaf) may help you. ii SIPP 1 of 10 What types of pension can I transfer in? In general you can transfer the following types of pension into our SIPP: Personal Pension Plans, Other SIPPs, Stakeholder Pension Plans, Retirement Annuity Plans, Executive Pension Plans (EPPs), Occupational Money Purchase Plans, Small Self-Administered Schemes (SSAS), Defined Benefit Occupational Pension Schemes and some recognised Overseas Pension Schemes. 1. The transfer process Step 1 - Contact your existing provider Ask your current pension provider(s) to send you a Valuation and Discharge Form for the pension(s) you want to transfer to us. This authorises your pension provider to release the valuation of your investments. To help speed up the transfer(s), please ask them to include the for each of your investments if you wish to transfer stocks and shares (in-specie). It may also be useful to ask them for details of any Lifetime Allowance Protection you may have or any Lifetime Allowance you have used up if you have taken any benefits, as this information may be required at a later date. Step 2 - Complete our SIPP Download a separate SIPP for each pension you want to transfer to us. For in-specie transfers, if we offer the same investments you can simply transfer them across from your current provider. This typically takes between six and eight weeks to complete if we have all the relevant information for each of your investments. If we don t offer the same investments, or if you simply want to change your investments, you can instruct your current provider to sell your investments. This way you d be able to transfer your pension(s) as cash. This typically takes between one and two weeks to complete. If your pension is transferred as cash then you will not make any investment gains or any losses which may not be in your favour. You may also lose benefits including life assurance or premium payment protection. If you hold your pension(s) with a life assurance company, you may need to sell your current investments before you can transfer to our SIPP. It s best to check this when you contact your current provider at Step 1. If a cash transfer can t be agreed electronically, the transfer time will be increased. If you are transferring a scheme which has defined or safeguarded benefits, (e.g. a final salary scheme) you may need to also complete and return the Financial Advice Declaration Form. See FAQ s below for more information.

2 Transfer in Guide 2 of 10 Step 3 - Send everything to us Sign and return the (s) to the address detailed on the Form(s). Include any discharge forms along with any other documents that you have received from your existing pension provider. Step 4 - We ll keep you informed We ll contact your current pension provider(s) to arrange the transfer(s) and provide you with regular progress updates. We ll also let you know if there s anything else we need from you. During the transfer process there is a period of time you will not have access to your assets while the transfer is being completed. If you require further information, please call our Client Services Team on or visit 2. Pension Transfer Checkpoints If you are not sure whether or not any of these points apply to you, we recommend that you seek independent financial advice. Whilst there are many benefits to transferring existing pension schemes into our SIPP it may not always be beneficial to do so. Before you decide to transfer you should check the following: Will you lose any valuable benefits such as guarantees or bonuses or the potential to take a higher level of tax free cash than the standard 25% of your pension fund? Will your existing provider make a charge for transferring out or charge a transfer penalty? Does your policy offer guaranteed annuity rates? Guaranteed annuity rates may allow an individual to obtain a higher level of income at retirement than might otherwise be available. You may lose a valuable benefit if you transfer out from a policy offering guaranteed annuity rates. Will any market value adjustment (MVA) apply on transfer from your existing provider? This may be the case if you are invested in a With Profits fund which could result in the reduction of the value of your pension fund available to transfer. Some providers offer MVA free dates when it is possible to transfer without the penalty applying. Is your employer contributing to your current pension scheme? If they are you ll need to check whether they will be prepared to contribute to the SIPP instead. Do you belong to a certain type of occupation, such as a sports person? Your existing pension may give you the right to take retirement benefits earlier than age 55 (known as a protected pension age). This benefit would be lost on transfer to the SIPP. 3. FAQs How long will the transfer take? This is often outside of our control as we are reliant on your existing provider. But rest assured that we will continue to monitor it and keep you informed. You could also contact your existing provider periodically to help speed things up. What s the minimum amount that I can transfer into the SIPP? There is no minimum amount for a transfer in.

3 Transfer in Guide 3 of 10 Are there any types of pension I m unable to transfer in to the SIPP? There are certain types of overseas pensions that cannot be transferred to our SIPP. If you have an overseas pension that you are considering transferring to the SIPP then we would suggest that you speak to us in the first instance before you make any arrangements to transfer. We will confirm whether the transfer can happen or not. Can you accept final salary schemes? We can accept transfers from schemes that provide you with defined or safeguarded benefits (for example a final salary scheme) subject to conditions. Please read on. For pension arrangements that provide you with a defined or safeguarded benefit (for example a final salary scheme), where the value is 30,000 or more, then we can only accept these types of transfers if you can provide evidence that you have received confirmation from an authorised pension transfer adviser that the transfer will be in your best interests. Please download and complete the Financial Advice Declaration Form from our website. Where the value of the pension being transferred is less than 30,000, we recommend that you still seek professional advice. We will only accept an unadvised transfer provided its value represents less than 10% of the current value of your SIPP plus the value of any defined contribution pensions you intend to transfer to it and/or any contributions being made to it. If in doubt, please contact us before sending us the transfer form. What information will my existing provider ask me for? The most common questions and the answers are as follows: Our SIPP pension scheme reference number Confirmation that the SIPP is a registered pension scheme under the Finance Act 2004 The name of the scheme provider/administrator and their address The scheme trustee Cheques should be made payable to RJ You can confirm it is. BW SIPP LLP 163 West George Street, Glasgow, G2 2JJ Investor SIPP Trustees Limited Investor SIPP Trustees Limited re your name Some pension providers may ask you to return your original policy document to them or include a written declaration with your transfer application if you re unable to find your original documentation. Why do I need a discharge form? This authorises your existing pension provider to release the valuation of your investments. They will provide this form to you. How do I find a lost pension? There is a government tracing service to help you find any pension schemes that you may have lost track of. To find out more go to: The ii SIPP is operated and administered by BW SIPP LLP, incorporated in England and Wales with company number OC Registered office: Cheapside House, 138 Cheapside, London EC2V 6BW. BW SIPP LLP is authorised and regulated by the Financial Conduct Authority (Financial Services Register Firm Reference Number ). Investor SIPP Trustees Limited (a subsidiary of Interactive Investor Limited), incorporated in England and Wales with company number Registered office: Standon House, 21 Mansell Street, London E1 8AA. Brokerage Services provided by Interactive Investor Services Limited, incorporated in England and Wales with company number Registered office: Exchange Court, Duncombe Street, Leeds, LS1 4AX. Authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS, United Kingdom (Financial Services Register Firm Reference Number ). Member of the London Stock Exchange and NEX Exchange. v1

4 4 of 10 About this form Before completing this form please complete an online SIPP account application and please read the Transfer In Guide. This form is your authority to transfer benefits from another registered pension scheme into our SIPP. For details of your cancellation rights please refer to the SIPP Key Features document. If you want to transfer a pension which has defined or safeguarded benefits (such as a final salary scheme) and the value is 30,000 or more, you will first need to obtain confirmation from an authorised pension transfer adviser that the transfer will be in your best interests before we can accept such schemes. Please download and complete the Financial Advice Declaration Form from our website. Where a pension which has defined or safeguarded benefits (such as a final salary scheme) has a value less than 30,000, we recommend that you still seek professional advice. We will only accept an unadvised transfer where the value represents less than 10% of of the current value of your SIPP plus the value of any defined contribution pensions you also intend to transfer to it and/or any contributions being made. If in doubt, please contact us before sending us the transfer form. Please complete all sections and sign the transfer authority and declaration. Please return your completed Form(s) to: SIPP Administration Team, interactive investor, Exchange Court, Duncombe Street, Leeds, LS1 4AX During the transfer process you may be unable to sell your assets. This is likely to be a short period for a UK equity transfer, but may be significantly longer for more complex transfers, such as International Securities or Funds. Please call our Client Services Team on for more information. 1. Account holder s details Title First Name(s) Surname Address Date of Birth D D M M Y Y Y Y SIPP Account Number National Insurance Number A B A Postcode Contact Number A B A B Address

5 5 of Transfer Details Please provide the name and address of your pension provider and your investment manager/stockbroker, if different from your pension provider below. Please enclose a copy of your account statement showing the assets (stock and cash) to be transferred including: Stock Name,, and, or list using the ASSET DETAILS on page 9. Name of Existing Provider Name of Existing Scheme Type of scheme being transferred (please tick one) Personal Pension Schemes inc. Stakeholder Pensions Occupational Money Purchase Pension Schemes Recognised Overseas Pension Schemes (Subject to our approval) SSAS Retirement Annuity Plans Defined Benefit Occupational Pension Schemes SIPP For schemes which are: Retirement Annuity Plans Defined Benefit Occupational Pension Schemes Where your transfer value is 30,000 or more you will need to complete a Financial Advice Declaration Form. Where the transfer value is less than 30,000 and you don t provide a Financial Advice Declaration Form, then the transfer value must represent less than 10% of the current value of your SIPP plus the value of any defined contribution pensions you also intend to transfer to it and/or any contributions to be made to it. Scheme provider s address Contact Number of Existing Provider Existing Account/Plan/Policy Number Postcode A B A B

6 6 of 10 Name of Investment Manager/Stockbroker Address Account Number Postcode A B A B Does the pension you are transferring have Defined or Safeguarded benefits? Yes No If yes, please tell us the amount of the transfer and the date that the transfer is guaranteed too. If you do not know the guaranteed date please contact the existing scheme administrator for the guaranteed date. Please then answer the remaining questions if they apply to your circumstances. Amount Guaranteed date D D M M Y Y Y Y If the transfer value is unadvised and less than 30,000, to enable us to check that the transfer you wish to make does not represent more than 10% of the value of your SIPP, please provide the following details: What is the current value of your SIPP? How much will be initially contributed to your SIPP? Will this be a pension contribution? Or, a pension transfer? How much will be contributed to your SIPP each year? For how many years will you be contributing? year(s)

7 7 of 10 Is the pension you re transferring? (Tick one option below) A: Already entirely in drawdown (Fully Crystallised) Est. Crystallised value Full Transfer Partial Transfer B: Already partially in drawdown (Partially Crystallised) Est. Crystallised value Full Transfer Partial Transfer Est. Un-crystallised value Full Transfer Partial Transfer C: Not in drawdown Est. Un-crystallised value Full Transfer Partial Transfer You may need to contact your existing provider to obtain your fund values. If you are already taking pension benefits, which type of drawdown do you have? For a Capped Drawdown transfer do you now wish to convert this to Flexi-Access Drawdown? Are you transferring? Cash* Capped Drawdown Yes Stocks & Shares (in-specie) Flexi-Access Drawdown No Both If you are transferring all of your pension in cash, please ensure you have sold any investments in time for settlement proceeds to have been received ahead of the transfer. 3. Transfer authority and declaration I authorise and instruct you to transfer assets from the plan(s) as listed in this form directly to the receiving scheme in the form of:- 1. a cash payment made by cheque, or such other method agreed with Interactive Investor Services Limited; and/or 2. an in-specie transfer of assets held on my behalf (after deduction of any outstanding liabilities or charges). Where appropriate Interactive Investor Services Limited will advise details of the nominee/ parties to whom assets must be transferred. I understand that the existing investment manager or administrator of the transferring scheme is responsible for collecting dividends and tax reclaims, and realising all rights and entitlements in respect of the assets transferred and for passing them to the receiving scheme.

8 8 of 10 I understand that until assets have been received in my new account I may not be able to sell existing investments or purchase new ones. This may mean that I am out of the market for this period. Where you have asked me to provide you with any original policy document(s) in return for the transfer of assets and I am unable to do so, I accept responsibility for any claims, losses and expenses of any nature which you may incur as a result of having made the transfer(s) listed in this form. I authorise you to release all necessary information to Interactive Investor Services Limited or BW SIPP LLP or Investor SIPP Trustees Limited to enable the transfer of funds to the receiving scheme. I agree that a copy of this authority should have the validity of the original. If an employer is paying contributions to any of the plans listed in this form, I authorise you to release to that employer any relevant information in connection with the transfer of funds from the relevant plan. Until this application is accepted and complete, I accept that the receiving scheme administrator s responsibility is limited to the return of the value held by them, which may be lower than the transferred value due to changes in the value of assets then held to the current plan. Where the payment made to the receiving scheme represents all of the funds under the plan listed in this form, then payment made as requested will discharge the current provider of all claims and responsibilities in respect of the plan listed. Where the payment made to the receiving scheme represents part of the funds under the plan listed in this form, then the current provider will be discharged of all claims and responsibilities only in respect of the part of the plan represented by the payment. I accept responsibility in respect of any claims, losses and expenses that Interactive Investor Services Limited or BW SIPP LLP or Investor SIPP Trustees Limited and the current provider may incur as a result of any incorrect information provided by me in this application or of any failure on my part to comply with any aspect of this application. I apply to the scheme administrator of the receiving scheme to accept the transfer from the transferring scheme and to pay it into my SIPP. I confirm that the information provided relevant to my application to transfer benefits into my SIPP is, to the best of my knowledge and belief, correct and complete. I confirm that I have not received from Interactive investor Services Limited, BW SIPP LLP or Investor SIPP Trustees Limited any advice or recommendation in respect of this transfer. Additional declaration for transfers of Income Drawdown Benefits (if applicable) I declare that all, or a part, of the transfer payment has been designated to provide income drawdown pension benefits for me under the transferring scheme. I understand that the transferring scheme is responsible for confirming the amount (if any) designated to provide these benefits. I further understand that the amount of the transfer payment representing these benefits will be applied to provide me with income drawdown benefits under the receiving scheme and will be subject to the same maximum income limit (if any) as under the transferring scheme, until such time as a further review of this limit is triggered. Account holder s signature Date D D M M Y Y Y Y

9 9 of Checklist Completed Transfer Form (For each pension) Discharge form (for each pension) This will be provided by your existing provider Number of Asset Details pages Financial Advice form Only required for Retirement Annuity Plans and Defined Benefit Occupational Pension Schemes of 30,000 or more The ii SIPP is operated and administered by BW SIPP LLP, incorporated in England and Wales with company number OC Registered office: Cheapside House, 138 Cheapside, London EC2V 6BW. BW SIPP LLP is authorised and regulated by the Financial Conduct Authority (Financial Services Register Firm Reference Number ). Investor SIPP Trustees Limited (a subsidiary of Interactive Investor Limited), incorporated in England and Wales with company number Registered office: Standon House, 21 Mansell Street, London E1 8AA. Brokerage Services provided by Interactive Investor Services Limited, incorporated in England and Wales with company number Registered office: Exchange Court, Duncombe Street, Leeds, LS1 4AX. Authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS, United Kingdom (Financial Services Register Firm Reference Number ). Member of the London Stock Exchange and NEX Exchange. v2

10 SIPP 10 of 10 Asset Details (print this page as many times as required) Cash