Reasons to use the IPS Family SIPP
The IPS Family SIPP is designed to provide a very competitive product in what is an increasingly dynamic marketplace.
One important aspect of the IPS Family SIPP is that we operate under the principle that if HMRC allows it, then so do we!
This is an important point when comparing Family SIPP providers and our unsurpassed flexibility has continued to strengthen our reputation in an ever increasingly competitive sector.
We have developed a reputation in the pensions industry for providing our clients with the very highest standards of pension administration, which sets us apart from other practitioners. For example:
Fees
1. The IPS Family SIPP offers a transparent and competitive fee structure which is operated on an extremely low cost basis, and is simple and easy to understand, namely:
- £500 plus VAT scheme establishment
- £495 plus VAT initial fee for each member
- £395 plus VAT annual fee per member
2. Our fee structure does not include "transaction charges" for each transaction made by a scheme. In our opinion, individual transaction charges represent an almost open ended right to charge fees.
3. We have a clearly worded Fee Agreement for each client, which sets out the basis of our charges. In some circumstances, where an unusually high number of transactions are carried out by a scheme and requiring a level of work not covered by the standard annual fee, we may need to approach the client to agree additional fees for this. Should this occur, the client will be notified in advance, rather than receive an unexpectedly high bill at the end of the year.
Administration
4. Each pension scheme is allocated a designated qualified account executive responsible for its day-to-day operation. This allows them to develop an in-depth knowledge of each scheme, together with a continuity of service that is not possible where a plan is handled by a number of departments.
5. The account executives are there to discuss and deal with any queries relating to the scheme as well as undertaking the day-to-day administration.
6. We take a pragmatic approach to problem solving that has been developed over more than 30 years in the self-administered pension scheme industry.
7. The IPS SIPP is administered using fully integrated computer systems, and includes the ability to download applications, access client data, transaction and investment summaries on-line and a wide range of guidelines covering most technical issues. Contact details for more specific queries are also available.
8. The IPS Family SIPP is operated by the Trustees. Not all members have to be Trustees, which gives added flexibility to allow minors, the very elderly or those resident abroad to be members. The Trustees can jointly delegate investment decisions to an investment adviser or even one of the trustees, who acts on behalf of the membership.
Protected Rights
9. The IPS Family SIPP is fully compliant with the A Day pension regulations introduced in April 2006, and is Authorised and Regulated by the Financial Services Authority (FSA).
Retirement Benefits and Protected Rights
10. The IPS SIPP can accept transfers of protected rights in respect of contracting out of the State Second Pension (S2P). This is achieved by each scheme registering as an Appropriate Personal Pension with HMRC.
11. The IPS Family SIPP offers all HMRC permitted methods of paying retirement and death benefits, including Scheme Pension which may be suitable for those over the age of 77 or in poor health.
Properties
12. In the case of pension scheme property purchases, we impose no restrictions or requirements on the use of a specific solicitor or property manager. The choice is left completely to the client, with no additional fees being levied if a designated company is not used for these purposes.
13. Responsibility for collection of rents, rent reviews, lease expiries and VAT returns rests with the members, and unlike some practitioners, we do not insist on performing these functions. Whilst this may place a greater administrative burden on the members, it enables us to keep fees to an absolute minimum, with no regular additional fee for SIPPs holding property.
14. By using a pooled fund approach available with a Family SIPP, the costs of purchasing property with a pension scheme can often prove to be very economical compared with other types of pension scheme.
Other Investments
15. The pension schemes we offer allow complete flexibility to use any recognised fund manager or financial adviser to handle the investment of accumulated funds.
16. Each IPS Family SIPP member has a separately identifiable member fund, but can also pool funds with other members to make joint investments. This allows the most flexible approach possible for pension investments.
17. The IPS Family SIPP allows purchase of warrants, futures, options, hedge funds, contracts for difference, unquoted shares and gold bullion, which in some cases are not permitted by other pension practitioners.
18. Each IPS Family SIPP member has a cash account with Barclays Bank Plc, which pays a very competitive rate of interest:
| Interest Rates |
|---|
| 0.4% below Bank Base for balances of over £50,000 |
| 0.6% below Bank Base for balances of under £50,000 |
Transfers, Contributions and Benefits
19. The IPS Family SIPP allows "in-specie" transfers of assets from other types of pension scheme, such as Property, Trustee Investment Plans, equities and With-Profit Bonds, which some practitioners do not permit. In-specie payment of contributions and retirement benefits are also possible. This helps to avoid situations where investments would have to be encashed prematurely, thereby incurring early surrender penalties or Market Value Reductions.
20. We have no minimum fund size or contribution level, which allows low level contributions for minors and maximum flexibility for the treatment of retirement benefits.