Member Benefits

Benefits up to age 75

Pension commencement lump sum

A member’s lump sum is usually 25% of their fund value at the date of crystallisation. This means that a fund value of £100,000 would usually pay £25,000 as a tax free lump sum.

However, if the member had an entitlement to tax free cash of more that 25% of the fund before A Day then it may be possible to pay a higher amount providing the necessary protections are in place. This would be most likely to apply to a pre 1987 member.

Pension

The balance of the member’s fund will be used to provide a pension. The member has several options for the payment of his pension:

  • Unsecured pension in which case the pension is taken directly from the SSAS through income drawdown until the member’s 75th Birthday. We calculate a maximum pension by reference to the size of the fund, the member’s age and Government Actuary Department’s annuity rate which applies at the time of crystallisation. The member can then take a pension of between zero and 120% of this maximum each year. We must recalculate the maximum pension at least every five years.
  • Lifetime annuity in which case the pension will be provided by an insurance company for the life of the member.
  • Short term annuity in which case the pension will be provided by an insurance company for up to five years
  • Scheme pension in which case the pension is taken directly from the SSAS for the life of the member.