embarkpensions.co.uk
KEY FEATURES
EBS SAPPP
CONTENTS
Introduction 03
Aims of the EBS SAPPP 03
Your commitment 03
Risks 03
Questions and answers 04
Terms of Business 07
How to complain 07
Our complaints process 07
Financial Services Compensation Scheme 07
Law 07
Important 07
2 | EBS SAPPP: KEY FEATURES
EBS SAPPP: KEY FEATURES | 3
The Financial Conduct Authority is the independent
financial services regulator. It requires us, EBS Pensions
Limited (EBS), to give you this important information to
help you to decide whether the EBS SAPPP is right for
you. You should read this document carefully so that you
understand what you are buying, and keep it safe for
future reference. The EBS SAPPP is a Self-Invested Personal
Pension (SIPP) that is closed to new members.
You should be aware that Stakeholder Pension Schemes
are generally available and might meet your needs as well
as this Self-invested Personal Pension.
The EBS SAPPP (the ‘Scheme’) has been set up under trust
and accepted as a registered pension scheme by HM
Revenue & Customs (HMRC).
In this document ‘we’, ‘us’ and ‘our’ refers to EBS, the
Scheme Administrator, and EBS Self-Administered Personal
Pension Plan Trustees Limited (EBS SAPPPTL), the Scheme
Trustee.
We will provide you with a personal illustration that forms
an integral part of this document and both should be
kept together. Full details of the Scheme are in our Terms
of Business, the Scheme Rules and our EBS SAPPP Fee
Schedule. Copies of these are available on request.
If you have any doubt whether the EBS SAPPP is suitable
for you, you should seek a personal recommendation
from an appropriately qualified person, such as a Financial
Adviser.
The Glossary provided with this document explains
some of the words and terms we have used. Technical
information that describes some of the features in greater
detail is available on request.
Aims of the EBS SAPPP
• To provide a tax-efficient way to save for your
retirement.
• To provide a wide range of investment options and
allow you to make your own investment decisions, or
make them with your Financial Adviser or Investment
Manager.
• To give you flexibility to cope with changes in your
employment or finances.
• To give you flexibility over how and when you take your
benefits.
• To provide death benefits to your beneficiaries.
Your commitment
• To tell us if the contributions (other than those
made by your employer) to your SIPP when added to
contributions (other than those made by your employer)
in the same tax year to other pension schemes are more
than your relevant UK earnings for that tax year.
• To tell us if you stop being entitled to receive tax relief
on your contributions.
• To actively manage your SIPP’s investments and
regularly review them to check they continue to meet
your needs and there is sufficient cash available to meet
any outgoing payments (for example pension income,
adviser charges and fees).
• To pay the fees and charges for your SIPP.
• As a co-trustee with EBS SAPPPTL, you will be
required to sign all documents including any payment
instructions, investment instructions and documents for
commercial property transactions.
Risks
The value of your retirement and death benefits might be
lower than anticipated if;
• The investments do not perform as well as we have
assumed in any illustrations we provide;
• Charges turn out to be higher than expected;
• There are changes in legislation affecting taxation and
SIPP contribution limits;
• Contributions to your SIPP are too low;
• You draw your retirement benefits before your selected
retirement age;
• Income is drawn at a higher level than is sustainable;
• The cost of buying a lifetime annuity when you retire is
higher than illustrated;
• Price inflation reduces the worth of all savings,
investments and pension benefits.
The value of the investments within your SIPP may fall as
well as rise and is not guaranteed.
Some investments may take longer to sell than others and
you may not be able to sell them when you choose or
need to.
If you transfer pension benefits from other pension
arrangements to your SIPP, you may be giving up rights
under those other arrangements such as guaranteed
benefits and future increases. Your existing pension
provider may also apply a penalty or other reduction in
the value of your benefits when you transfer. There is no
guarantee that you will be able to match the benefits that
you give up by transferring.
4 | EBS SAPPP: KEY FEATURES
What is a SIPP?
A SIPP is a personal pension plan that provides a tax-
efficient way to save for retirement and allows you to make
your own investment decisions, or with the assistance of
your Financial Adviser or Investment Manager, within our
permitted range of investments.
Is the EBS SAPPP a Stakeholder Pension
Scheme?
No it is not. If you want further information about
Stakeholder Pension Schemes you should contact a
Financial Adviser.
Can the EBS SAPPP be used for auto
enrolment?
The EBS SAPPP is not designed to be used to meet
employers’ obligations under auto enrolment legislation.
If you are employed, your employer will need to make its
own arrangements for auto enrolment.
What are the tax advantages?
Your contributions to your SIPP should receive relief from
income tax, subject to the annual allowance.
Your employer can make gross contributions to your SIPP.
Investments within your SIPP are free from income and
capital gains tax, although it is not possible to reclaim tax
paid on UK share dividends. Whether any overseas tax
deducted at source in relation to overseas investments can
be reclaimed will depend on double taxation treaties.
If you are over the normal minimum pension age, you
can usually take up to 25% of your SIPP fund as a pension
commencement lump sum up to a maximum of £268,275
unless certain protections held, paid tax-free, subject to
having sufficient remaining Lifetime Allowance.
If you are over the normal minimum pension age, you may
be able to draw an uncrystallised funds pensions lump
sum, 25% of which is paid tax-free, subject to you having
sufficient remaining Lifetime Allowance.
Benefits paid in the event of your death will normally be
free from inheritance tax.
The tax treatment of pensions depends on individual
circumstances and may be subject to change in the future.
Am I eligible for a SIPP?
You will be eligible for a SIPP provided you are UK resident.
You must also be over 18 years old and capable of acting
as a co-trustee.
If you are 75 or older you can only take out a SIPP if one or
more of the following also applies:
• You are transferring benefits from another pension
scheme;
• You are employed and your employer is to contribute to
your SIPP;
• Your Financial Adviser has recommended that you
contribute to your SIPP.
Who can pay contributions to my SIPP?
If you are a relevant UK individual, you, your employer or
anyone else can pay contributions to your SIPP for
your benefit.
Is there a minimum contribution?
There is no minimum contribution that you must pay.
Contributions may be paid when you want or on a
regular basis.
Do I get tax relief on my contributions?
Contributions to your SIPP (except those made by your
employer) must be paid net of basic rate income tax. For
example, if you wanted a gross contribution of £10,000,
you would pay a net contribution of £8,000 and we would
claim the basic rate tax of £2,000. Tax relief is not available
on contributions (other than employer) that are paid after
age 75.
Contributions by parties other than you or your employer
are treated as if they were contributions made by you.
Any additional tax relief to which you are entitled can be
claimed through your self-assessment tax return.
How much can be contributed?
Tax relief on your contributions will only be available where
your total gross contribution does not exceed the greater
of £3,600 and the amount of your relevant UK earnings for
the tax year in which the contributions are made.
Employer contributions are paid gross and there is no
specified limit on the amount that your employer can pay in.
If the total pension inputs to all your registered pension
schemes attributed to a tax year exceed your available
annual allowance (subject to the tapered annual allowance
or money purchase annual allowance rules, if applicable)
you will be personally liable for tax on the excess.
If you hold Enhanced Protection or Fixed Protection, any
contributions will result in you losing the protection.
QUESTIONS AND ANSWERS
EBS SAPPP: KEY FEATURES | 5
Can I transfer my existing pension benefits to
my SIPP?
Yes, your SIPP can normally receive transfers of pension
benefits from other registered pension schemes even
when benefits are in payment. However, for the transfer
of pension benefits from a defined benefit (final salary)
scheme or safeguarded benefits, we will only accept the
transfer if you provide us with evidence of a positive
recommendation to transfer from a suitably qualified
Financial Adviser. We do not accept transfers from public
sector pension schemes.
If you transfer pension benefits that are paying a Capped
Drawdown Pension, the limits and review dates that applied
under the transferring scheme will also apply to those
benefits in your SIPP.
Transfers can be in the form of cash and acceptable assets.
See “What can my SIPP invest in?”.
Can I transfer my pension benefits to another
pension scheme?
You can normally transfer part or your entire SIPP fund
to another registered pension scheme of which you are
a member. A transfer may also be made to a Qualifying
Recognised Overseas Pension Scheme (QROPS) subject to
HMRC requirements. We charge for processing transfers.
Where you are receiving a drawdown pension from your
SIPP, the whole of the crystallised fund must be transferred.
What can my SIPP invest in?
You will have a considerable amount of freedom in choosing
the investments for your SIPP but we reserve the right to
veto or impose restrictions and requirements in relation to
any investment which will, or has the potential to, give rise to
tax charges on you as the member, your SIPP or both.
The following categories of investment are broadly acceptable:
• Stocks and shares listed on any HMRC recognised stock
exchange, the Alternative Investment Market and ISDX
Main Board
• Exchange traded funds and exchange-traded
commodities where listed as above
• Investment trusts
• Gilts and corporate bonds
• Non-commission bearing (‘clean’) units in unit trusts and
share classes in open-ended investment companies (OEICs)
• Permanent Interest Bearing Shares (PIBS)
• Hedge funds
• Bank and building society accounts in any currency
• Insurance company funds (managed funds)
• Traded endowment policies
• Investment grade gold
• Commercial property (land and buildings) in the UK
Your SIPP is also allowed to borrow on commercial terms
up to 50% of the net market value of your SIPP fund. We
may consider accepting other less conventional forms
of investment subject to full disclosure of the proposed
investment and satisfying any conditions we have laid down.
Is there a limit on the funds I can build up in
my SIPP?
No limit applies to the value of your SIPP. You can take 25%
of the value of your SIPP (up to a maximum of £268,275
unless certain protections apply) tax free. The remainder can
be used to provide you with an income and will be taxed at
your marginal rate of of income tax.
What happens when I die?
When you die the Trustees of your SIPP, operating under
their discretionary powers, will have the following options:
• To pay the value of the SIPP fund as one or more lump
sums to your nominated beneficiaries
• To purchase annuities for your dependants and nominees
• To provide your dependants and nominees with
drawdown pensions
• To provide combinations of these death benefits
• You will have the opportunity to tell the Trustees to
whom you would like these benefits to be paid.
When can I take my retirement benefits?
You can take your retirement benefits from the normal
minimum pension age or earlier if you are in ill-health or
have a protected pension age.
Which retirement options are available?
You can take retirement benefits from your SIPP by:
• Flexi-access drawdown pension
• Uncrystallised funds pension lump sum
• Buying a lifetime annuity
• Buying a short term or flexible annuity
• A capped drawdown pension if you have an existing
capped drawdown arrangement.
Further details of each option, including the associated
risks, are available on request.
6 | EBS SAPPP: KEY FEATURES
Am I entitled to a pension commencement
lump sum?
You can normally take a pension commencement lump
sum of up to 25% of the part of your SIPP fund you
wish to crystallise, up to maximum of £268,275 unless
certain protections are held. Provided you have sufficient
remaining Lifetime Allowance, this lump sum will be paid
tax-free.
How is my pension taxed?
Your pension will be treated as earned income and subject
to income tax. We deduct tax at source before paying you
the net pension though our payroll service. Neither your
pension nor any pensions paid to your dependants or
nominees should be subject to National Insurance.
How is my pension paid?
Your pension can be paid monthly, or less frequently,
on the first day of each month. All pensions are paid in
pounds sterling.
What are the charges?
Details of our charges and fees for your SIPP are in the
sheet entitled EBS SAPPP Fee Schedule which should be
read in conjunction with this Key Features document
before you apply for your SIPP.
The exact fees and charges you pay will depend on your
SIPP’s investments and the services you use.
Can EBS give me advice?
No. If you have any doubt as to whether the EBS SIPP is
suitable for you, you should consult a suitably qualified
Financial Adviser who can provide you with a personal
recommendation.
Being self-invested, you make your own investment
decisions or you may appoint a suitably regulated
investment adviser to do so on your behalf.. Please note
that we are not regulated to give investment or financial
advice. We do not accept any liability for any decisions
relating to the purchase, retention and sale of the
investments within your SIPP.
Can I change my mind?
Yes. After setting up your SIPP we will send a cancellation
notice to you. If you have changed your mind, you will
have 30 days from the date you receive this notice to
cancel your SIPP. If you cancel your SIPP we will repay any
contributions we have received.
For each pension transfer to your SIPP we will send you a
substitute cancellation notice. You will have 30 days from
when you receive the notice to change your mind and
cancel the pension transfer.
If you cancel a pension transfer, we will attempt to repay
it to the transferring scheme. However, the transferring
scheme may refuse to accept the repayment, or only accept
it on different terms to those applying prior to the transfer,
in which case we will require your instructions on whether
to pay the amount to another registered pension scheme.
When you crystallise benefits under flexi-access drawdown
we will write to you and confirm the benefits payable. You
will have 30 days from receipt of this letter to inform us if
you wish to cancel this transaction. If you cancel you will
need to repay any pension commencement lump sum and
pension that has been paid to you. The payment of an
uncrystallised funds pension lump sum cannot
be cancelled.
If investments have been made during the cancellation
period the value of the repayment may be higher or lower
than the amount originally invested. If you decide to cancel,
we may deduct charges for any services we have provided
during the cancellation period.
QUESTIONS AND ANSWERS
EBS SAPPP: KEY FEATURES | 7
Terms of Business
This Key Features document does not include the detailed
terms for the EBS SAPPP, which are contained in the
Scheme Rules, EBS SAPPP Fee Schedule and the the EBS
SAPPP Terms of Business. If you would like copies of these
documents please contact us.
How to complain
Our aim is to provide you with excellent service at all times.
However, we do understand things can sometimes go
wrong. If this happens, we will do our best to resolve your
concerns as quickly as possible.
If you have an issue with any aspect of our service you
can raise your concerns with us, either in writing or by
telephone.
Service Recovery
Embark Group
Provincial House, 37 New Walk, Leicester LE1 6TU
Tel: 0116 366 8756
Email: [email protected]
Our complaints process
Acknowledgement
We will acknowledge your complaint in writing, by letter or
email, summarising our understanding of your concerns,
within 5 working days. There may be times where it is
easier for us to call you to make sure we fully understand
all of the issues you are raising. Again, we will do this within
5 working days.
Investigation
Your complaint will be looked after by our Group Service
Recovery Team, who will conduct an independent and
impartial investigation.
Response
Once we have completed our investigation into your
complaint we will issue a final response letter to you. This
letter will be sent out within 8 weeks of receiving your
complaint and will detail our findings and advise of any
further action we may choose to take. This is the final stage
of our complaints process. If, for any reason we are unable
to issue our final response within 8 weeks of receiving your
complaint, we will write to you and explain why. We will
also let you know when you can expect our final response.
At this point we will provide you with details of the
appropriate Ombudsman service and explain how you can
refer your to complaint to them if you wish.
What if you remain dissatisfied?
If you are dissatisfied with our response after 8 weeks
and your complaint relates to the administration or
management of your pension scheme you can contact:
Financial Ombudsman Service
Exchange Tower, Harbour Exchange,
London E14 9SR
Tel: 0800 023 4567
www.financial-ombudsman.org.uk
If you wish to refer your complaint to the Financial
Ombudsman Service, you must do so within 6 months of
the date of our final response.
Financial Services Compensation Scheme
We are covered by the Financial Services Compensation
Scheme (FSCS). You may be entitled to compensation from
the FSCS if we cannot meet our obligations. Whether you
are eligible depends on the circumstances at the time.
Further details are available on request or by visiting the
FSCS website: www.fscs.org.uk/consumer
Law
All correspondence will be in English. In legal disputes the
Law of England and Wales will apply. EBS Pensions Limited
(EBS) is the Scheme Administrator of the EBS SIPP and is
responsible for its administration and management. EBS
Self-Administered Personal Pension Plan Trustees Limited
(EBS SAPPPTL) acts as the Scheme Trustee. Both EBS and
EBS SAPPPTL are wholly owned subsidiaries of Embark
Group.
For cash deposits the maximum claim that could be made
by your SIPP is £85,000.
Important
The information contained in this Key Features document
is based on our understanding of English law at the date
of publication and HMRC practice. The tax treatment of
pensions depends on individual circumstances and is
subject to change in future.
EBS KFD 0004 (0423 IH)
Embark Pensions is a trading name of EBS Pensions Ltd. EBS Pensions Ltd is a company registered in England (No. 998606) and a wholly owned
subsidiary of Embark Group Ltd, with its registered oce at 100 Cannon Street, London EC4N 6EU. EBS Pensions Ltd is authorised and regulated by
the Financial Conduct Authority (Registration no. 134908).
EBS Self-Administered Personal Pension Plan Trustees Limited (No. 02853014) is a company registered in England with its registered oce at
100 Cannon Street London, EC4N 6EU and is a wholly owned subsidiary of Embark Group Limited.
Provincial House, 37 New Walk, Leicester, LE1 6TU
embarkpensions.co.uk
01204 803 500
