Benefit Payment Request Form for Flexible Drawdown Pension 1. Personal Details Title: Forename(s): Surname: Home Address: Post code: 2. Current Benefits a. Is this the first time you have elected to take any benefits from any pension scheme? If please proceed to section 3. b. Pre A-Day Benefits Were you receiving benefits on or before 5 th April 2006 from any pension schemes that had accrued funds up to this date? If please provide the following details: Name of Pension Scheme c. Post A-Day Benefits Scheme Administrator Total: Max. Annual Pension payable Have you started taking benefits from any pension scheme since 6 th April 2006? If please provide the following details: Name of Pension Scheme Scheme Administrator Value of lump sums paid Lifetime Allowance used Total:
3. Protecting your Lifetime Allowance a. Do you have Enhanced Protection? If please provide your certificate reference number and enclose a copy of the certificate with this form. Ref No: b. Do you have Primary Protection? If please provide the value of your uncrystallised lump sum rights on 5 th April 2006, and your Primary Protection factor, both of which can be found on your Primary Protection certificate if they apply. Uncrystallised lump sum rights on 5 th April 2006 Primary Protection factor Please provide us with a copy of your Primary Protection certificate with this form. c. Do you have Fixed Protection? If please provide your certificate reference number and enclose a copy of the certificate with this form. Ref No: d. Do you have any other form of protection listed below (please tick all that apply)? Pension Credit Rights International Certificate Ref No Certificate Ref No Please provide copies of the relevant certificates with this form. 4. Benefit Instruction a. Complete this section only if you have used up all of your Lifetime Allowance. If you have not used up all of your Lifetime Allowance please proceed to section 4b overleaf. Please indicate how much of your pension fund you would like to crystallise at this time (please choose one option): No. of arrangements (min. 1, max. 1,000) Amount of SIPP fund Please indicate how you would like these benefits to be paid: Lump sum (subject to a 55% tax charge): % Taxable Income (subject to a 25% tax charge): % 100 %
b. Complete this section if you have not used up all of your Lifetime Allowance. Please read each question carefully before responding. If the information you provide is unclear we may require further written instructions from you before we can process your request. (i) Please indicate how much of your pension fund you would like to crystallise at this time (please choose one option): No. of arrangements (min. 1, max. 1,000) Percentage of SIPP fund % Amount of SIPP fund Percentage of LTA % Crystallising a part of your pension fund will normally entitle you to receive 25% of the amount crystallised as a tax-free Pension Commencement Lump Sum. Please indicate how much of your lump sum entitlement you wish to take up (please choose one option): Maximum available* Specified amount (leave blank) In addition to your Pension Commencement Lump Sum, would you like to receive a taxable income from your pension fund at this time? If, please indicate the amount of taxable income you would like to receive: (income payments are made on 25 th of the month) net/gross (ii) Alternatively, if you prefer you can ask us to crystallise just enough of your pension fund to entitle you to a specified Pension Commencement Lump Sum, a specified annual taxable income, or a combination of both (please choose one option): Lump sum amount Taxable income net/gross Combination net/gross (iii) If you are currently receiving an income from your Talbot & Muir SIPP, and you have specified a desired level of income above, have you included your current gross annual pension in your new income requirement? (the figure above includes my current pension income) (the figure above is in addition to my current income) If you have asked us to provide a net income, please indicate the tax rate you would like us to use: Basic Rate Higher Rate (40%) Add l Rate (50%) Once income payments have commenced, HM Revenue & Customs will inform us of any coding notices that affect the level of income tax we should deduct from your payments under the PAYE system. *If you have Primary Protection with uncrystallised lump sum rights in excess of 375,000 on 5 th April 2006 (please see section 3b) the maximum lump sum available will be the remaining value of these lump sum rights that you have not yet taken as benefits. Please note that once your Benefit Payment Request has been accepted, you will have twelve months in which to take up your entitlement to a Pension Commencement Lump Sum. Any lump sum payments made after this deadline has passed will be treated as Unauthorised Member Payments, and as a result you will be personally liable for an Unauthorised Payment tax charge and your scheme will be subject to a Scheme Sanction charge.
5. Payment Instruction a. Please indicate the payment method you would prefer in respect of your Pension Commencement Lump Sum entitlement, if applicable (please choose one option): Cheque payable to: Direct transfer (please supply bank details in section 5d) b. If you have elected to receive a taxable income from your pension, please indicate the frequency of payments you would prefer: Monthly Quarterly Annually in advance Annually in arrears c. If you have elected in section 5b to receive an annual income from your pension (either in advance or in arrears), please indicate the payment method you would prefer (please choose one option): Cheque payable to: Direct transfer (please supply bank details in section 5d) If possible the payment of your Pension Commencement Lump Sum and net annual pension will be made in a single transaction. d. If you have elected to receive your Pension Commencement Lump Sum or your annual pension by direct transfer, or if you require a pension paid on a quarterly or monthly basis, please provide us with details of the bank account to which you would like the payments made. Please note that if you are a signatory on your Cater Allen bank account you will still be required to sign a standing order mandate or CHAPS/BACS instruction. We will send this to you once we have calculated the PAYE liability on your gross pension. Bank/Building Society: Address: Sort Code: - - Account No: Account Name: Post code: Please note that if you have requested that we pay you an annual pension, we will not automatically make subsequent payment(s) on your drawdown anniversary. You will receive an annual valuation of your pension fund, and if you require a further pension payment on or after your next drawdown anniversary, please contact us. e. If you have requested the payment of a Pension Commencement Lump Sum or annual pension by direct transfer, you can choose for the payment to be made by CHAPS, in which case the payment will be made by the close of the business day on which the payment request is sent to Cater Allen Private Bank, subject to a 25 bank charge, or BACS, in which case the payment will not incur any bank charge but may take 3-5 working days to complete. Please indicate your preferred payment method (please choose one option): CHAPS BACS
IMPORTANT INFORMATION If this form is not completed fully we may be unable to process your request. Your benefit payment request for flexible drawdown will only be processed once we have received a valid Flexible Drawdown Declaration Form. The date of your declaration below will be deemed to be the date of the crystallisation of your benefits, even if we receive your signed Benefit Payment Request Form after that date. For the purposes of determining your available Pension Commencement Lump Sum or, if applicable, the amount of your fund that must be crystallised to provide your desired level of flexible drawdown pension income, the assets of your pension scheme will be valued as at the date of your declaration. You should be aware of the administrative charges for your pension scheme. On the first occasion that you opt to crystallise some or all of the benefits of your SIPP for the provision of a flexible drawdown pension, a fee of 275 (325 for a Flexible Retirement Account) plus VAT will be incurred. This includes a fee of 125 plus VAT for the calculation of your maximum allowable annual pension, and a fee of 150 (200 for a Flexible Retirement Account) plus VAT for the establishment of your first tranche of drawdown pension. An annual drawdown fee of 150 (200 for a Flexible Retirement Account) plus VAT will be payable in advance at each drawdown pension anniversary. A fee of 75 plus VAT will be incurred whenever you elect to designate further benefits for drawdown. A fee of 125 plus VAT will be incurred in the event that you exhaust your remaining pension benefits through drawing a flexible drawdown pension. All of the above fees apply whether you opt to receive a flexible drawdown pension income or not. Under flexible drawdown you may opt to receive a taxable income of any amount up to the value of your crystallised benefits. The above details of our charges are not exhaustive. Our full Schedule of Fees & Services is available on request, and can also be downloaded from our website at: www.talbotmuir.co.uk Under HMRC rules we are required to value certain pension scheme assets on a quarter up basis. Where such a valuation cannot be provided free of charge by your current fund manager, stockbroker, etc., we will employ the services of a third party firm to provide a valuation as required. By signing the declaration below you are indicating your consent that we may deduct any charges involved in employing a third party firm to provide these valuations from your pension benefits, which will be separate from and in addition to our own administrative charges. Talbot & Muir SIPP will not profit from this in any way, and the amount deducted from your pension benefits for these purposes will reflect only the cost of the valuation service provided by the third party firm. 6. Member Declaration With regard to the options selected in sections 4 and 5 I acknowledge and request that: The specified number of arrangements be opened and I acknowledge that the Scheme Administrator will be discharged from any further liabilities regarding these arrangements. The Scheme Administrator will be responsible for operating a PAYE system of taxation to the income from arrangements designated for drawdown pension and will forward the necessary tax liability to HM Revenue & Customs. The Scheme Administrator cannot be held responsible in the event of insufficient liquidity within the scheme to ensure continuous payment of income derived from arrangements in drawdown pension. I confirm that Talbot & Muir SIPP have provided me with no financial advice in relation to this transaction, and nor was any advice requested. I consent to Talbot & Muir SIPP deducting from my pension benefits any costs whatsoever that may be incurred by them in carrying out my request. Signed (Member)... Date...