Small pots lump sum payment instruction

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About this instruction

Use this instruction if you’re an individual with Aegon Retirement Choices Self Invested Personal Pension wrapper(s) and/or One Retirement

wrapper(s) and you want to take your pension fund from your wrapper(s) numbered in section 2.2 (the ‘wrapper(s)’), as small pots lump sum(s) (‘small pots lump sum(s)’), as described in section 5. You’ll be eligible to have all of the funds from the wrapper(s) paid as small pots lump sum(s), where:

n you’ve not previously received more than two such

payments in respect of arrangements under non-occupational pension schemes

n you’ve not previously received small pots lump

sum(s) from any such arrangement, you’ve not listed more than three wrappers and at the time of payment your fund value under each of them isn’t more than £10,000

n you’ve previously received one small pots lump

sum from any such arrangement, you’ve not listed more than two wrappers and at the time of payment your fund value under each of them isn’t more than £10,000

n you’ve previously received two small pots lump sums

from such an arrangement, you’ve listed only one wrapper and at the time of payment, your fund value under it isn’t more than £10,000

n at the time of the payment, you’ll have reached

the normal minimum pension age, currently 55 (or your protected pension age, if you have one) or you meet the ill-health condition, and

n the payment extinguishes your entitlement to

benefits under the wrapper(s)

If you don’t meet all of these conditions, you shouldn’t complete this form.

By completing this instruction you’re confirming that you’re eligible to have all of the funds from the wrapper(s) paid in the form of small pots lump sum(s) instead of a pension.

Small pots lump sums and tax

n We can pay 25% of any commuted uncrystallised

funds as a tax-free amount.

n We have to tax the balance of any commuted

uncrystallised funds, and all commuted crystallised funds, at the basic tax rate under PAYE.

After the end of the tax year HM Revenue &

Customs (HMRC) will check whether you’ve paid the correct amount of tax, and if not they’ll contact you. However, if you think you’ve paid too much tax you can ask HMRC for a tax refund now.

Additional information

n You can check the current value of your

wrapper(s) online to see if you can take small pots lump sum(s).

n Please complete this instruction in BLOCK

CAPITALS and ballpoint pen.

n Where you see this icon *, you may need to send

us a certified copy of additional material with this instruction.

n We explain terms in bold in the definitions section

at the end of this instruction.

n Return the completed form to Platform Client

Services, Aegon, Edinburgh Park, Edinburgh, EH12 9SE.

Please read these notes before completing this instruction

Small pots lump sum payment instruction

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Small pots lump sum payment instruction  |  Page 2 of 5

2. Small pots lump sum

2.1 Have you taken any small pots lump sums from non-occupational pension schemes before?

No

Yes – please tell us how many Remember you can only take a maximum of three small pots lump sums as described in section 5.

2.2 Please tell us the wrapper number(s) you want to take a small pots lump sum from. The amount in each wrapper can’t be more than £10,000 at the time the small pots lump sum is paid.

1. Your details

Title

Mr / Mrs / Miss / Ms / Other – please specify

Full forename(s)

Surname

Date of birth (dd/mm/yyyy)

Email

Phone number

We may use your email or phone number to contact you about your instruction.

Please include a certified copy of your passport or driving licence with the completed instruction as evidence of your age and identity *.

3. Payment details

Bank/Building society name

Address

Postcode Sort code

Please tell us your bank details that we’re to pay the small pots lump sum(s) to. Your bank details should be for a personal account in your name or one where you’re 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 *.

Account number

Name of account holder(s)

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4. Declaration

In this declaration ‘I’ means the individual detailed in section 1 and ‘you’ means Scottish Equitable plc as Scheme Administrator of the Aegon Self Invested Personal Pension Scheme.

4.1 I’ve been made aware of my pension options and tax implications. I’ve also had:

a regulated advice from a financial adviser Yes

No

b guidance from Pension Wise Yes

No

c retirement risk warnings specific to the option I’ve selected

Yes

No – we can’t progress your claim until you’ve received and reviewed the risk

warnings specific to the option you’ve selected. You can access this information at aegon.co.uk/retirementplanner under the ‘Make it Happen’ section, the leaflet at the end of this instruction, or alternatively you can contact us directly.

4.2 I, request that you pay the funds from the wrapper(s) to me as small pots lump sum(s). I declare that the following conditions for payment of the small pots lump sum(s) are met:

a I’ve not previously received more than two such payments in respect of arrangements under non-occupational pension schemes

b where I’ve not previously received a small pots lump sum from such an arrangement, I’ve not listed more than three wrappers and at the time of

payment the fund value under each of the wrappers isn’t more than £10,000

c where I’ve previously received one small pots lump sum from such an arrangement, I’ve not listed more than two wrappers and at the time of payment the fund value under each of the wrappers isn’t more than £10,000

d where I’ve previously received two small pots lump sums from such an arrangement, I’ve listed only one wrapper and at the time of payment the fund value under the wrapper isn’t more than £10,000

e at the time of the payment, I’ll have reached the normal minimum pension age, currently 55 (or my protected pension age, if I have one) or I meet the ill-health condition, and

f the payment will extinguish my entitlement to benefits under the wrapper(s)

4.3 I acknowledge that a small pots lump sum(s) payment can’t be made to me from the wrapper(s) if I’ve previously received three small pots lump sums from arrangements under non-occupational pension schemes.

4.4 I acknowledge that a small pots lump sum payment(s) can’t be made from a wrapper to me if the value of that wrapper is greater than £10,000 at the time of payment. If any wrapper listed in 2.2 is greater than £10,000 at the time of payment then no small pots lump sum payment can be made from that wrapper.

4.5 I acknowledge that you’ll rely on this declaration, and confirm that if a small pots lump sum payment made to me in connection with this request results in you becoming liable for a scheme sanction charge and penalties and/or interest to HMRC, that I’ll be responsible for, and be liable to pay to you a sum equal to the amount of that scheme sanction charge, any penalties and interest charged by the HMRC and any interest charged by you.

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5. Conditions for taking a small pots lump sum

If you have a fund of £10,000 or less held in a non-occupational pension scheme arrangement, then this can be paid to you as a small pots lump sum provided certain conditions are met. The conditions are:

n at the time of the payment, you’ll have

reached the normal minimum pension age, currently 55 (or your protected pension age, if you have one) or the ill-health condition is met

n the gross payment from the arrangement

isn’t more than £10,000

n the payment extinguishes your entitlement

to benefits under the arrangement, and

n at the time of the payment, you’ve

not previously received more than two such other payments in respect of an arrangement under any such scheme, including any similar payments made to you in the period 6 April 2012 to 26 March 2014 (such payments being subject to a £2,000 limit per arrangement).

Provided these conditions are met, these payments can be made regardless of the value of your total pension savings and can be made in addition to any other type of trivial commutation lump sum you may have received. You can have a maximum of three such ‘small pot’ payments in your lifetime. 4.6 I agree that any sum due may be deducted

from any arrangements for or in respect of me under the scheme.

Date (dd/mm/yyyy)

Signature

7

7

4. Declaration (continued)

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6. Definitions

Certified copy – where we’ve asked for certified copies of documents from you, these can be certified by a number of different people including:

n a financial adviser

n a Post Office official (through the Post

Office’s certification service)

n a bank/building society official n an accountant

To find a full list go to ‘What do you need to prove my identity to take my benefits?’ in the FAQ section ‘Rules, regulations and tax’ of Your retirement planner at aegon.co.uk/ retirementplanner

The person certifying your document should provide the following on the copy:

n their name in block capitals

n the name of the company they work for n the address of the company

n their occupation and role within the

company

n the statement ‘I certify this to be a true

likeness of the original’, and

n their signature

Crystallised funds – are pension funds which have been used to provide benefits, which for the purposes of this form is drawdown.

Ill-health condition – is met if we’ve received satisfactory medical evidence from a registered medical practitioner that you’re (and will continue to be) incapable of carrying on your occupation because of physical or mental impairment.

Interest – will be added on a daily basis to any amount due to the scheme administrator for any scheme sanction charge. It will be calculated on a daily basis from the date the first payment was due at the Royal Bank of Scotland plc base rate plus 5%.

Non-occupational pension scheme – is a contract-based pension scheme, such as a:

n Personal pension

n Group Personal pension

n Group Self-invested Personal pension n Stakeholder pension

n Group Stakeholder pension

n Retirement annuity contract (section 226

contract)

n Section 32 buyout, or

n Trustee proposed section 32 buyout

Uncrystallised funds – are pension funds which haven’t, as yet, been used provide benefits under a pension plan.

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 165548 and 543123 respectively.

© 2015 Aegon UK plc

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Before you apply – cash lump sum risks

Before you apply, it’s important to understand the main risks associated with the different lump sum options available. Please read the questions below carefully and fully investigate any that you think may apply to you before you act.

Have you taken advice or guidance from a financial adviser

or Pension Wise?

YES

There’s a risk that you may choose an option that doesn’t suit your needs. This is an important decision and Aegon would always

recommend that you seek advice or guidance to ensure that you fully

understand your options.

i

NO

Are you aware that you will pay tax on this option and this may take you in to

a higher rate tax bracket?

YES

NO

There’s a risk that after tax is deducted you may not get as much as you were expecting. The amount you withdraw and other income you receive may result in you paying

higher rate tax or even owing additional tax.

i

NO

YES

YES

NO

Are you confident that this option plus any other savings or income will allow you to sustain your desired lifestyle in

retirement?

Do you have any guarantees built in to your current contract?

There’s a risk that you may run out of cash. The state pension is only £115.95 per week

(April 2015), therefore you must make sure that you invest wisely or budget effectively.

Remember, average life expectancy is 79 for males and 82 for women!

i

There is a risk that you will lose your right to any guarantee which may reduce the level of income you receive in retirement. You should

make sure you understand the conditions of any guarantee before making a

decision.

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Aegon is a brand name of Scottish Equitable plc. Scottish Equitable plc, registered office: Edinburgh Park, Edinburgh EH12 9SE. Registered in Scotland (No. 144517). Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 165548. An Aegon company. www.aegon.co.uk

NO

Do you have any debt?

YES

If you owe money, there’s a risk that your lender may be entitled to your

pension savings when you take it as income.

i

Are you concerned about investment scams?

NO

YES

There’s a risk that you may be targeted by individuals or groups operating

investment scams.

Investment scams can look and sound believable often promising low risk, high

return options. If you’ve any doubts you should seek financial advice from a regulated financial adviser before committing. For more

information on this please visit

fca.org.uk/news/as-new-pension-freedoms-arrive-be-scamsmart

i

Are you aware of the charges associated with any planned

investment?

YES

NO

There’s a risk that charges payable on any future investments may be greater

than those currently paid on your pension savings.

i

YES

There’s a risk that taking your income may result in the loss of any means tested

benefits you currently receive or may be eligible for at some point

in the future.

i

Please carefully consider any risks that apply to you before you proceed.

If you have any questions, email us at enquiries@aegon.co.uk, or call us on 03456 100 010.

Do you claim any means tested benefits?

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