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The Forthplus SIPP

Key Features

The Financial Conduct Authority is the independent fi nancial services regulator. It requires us, Forthplus Pensions Limited, to give you this important information to help you to decide whether The Forthplus SIPP is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.

This Key Features Document

This document explains the key features of The Forthplus SIPP (which is a self invested personal pension), important information which you should consider. It has a range of frequently asked questions and explains who is involved in providing you with the pension, and what regulations and protections cover this product. You should take the time to read this document and consider its content before you complete your application to The Forthplus SIPP.

If you have any questions or require clarity on any part of this document, or anything relating to the product, process or the companies, please contact your professional adviser or ourselves. Our contact details are on the last page of this document.

FORTHPLUSPENSIONS

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The Forthplus SIPP

Key Features FORTHPLUSPENSIONS

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Forthplus Pensions Limited Clarendon House, 114-116 George Street, Edinburgh, EH2 4LH

T: +44 (0) 345 646 0156 F: +44 (0) 131 777 2668 E: [email protected]

Company Registration Number: 07990504. Authorised and regulated by the Financial Conduct Authority. FCA number: 653170December 2018

www.forthplus.com2

Table of ContentsThe Key Parties and the Product 3Your Commitment 4Risks 5-7- Funding the plan

- Investments

- Withdrawals

Questions and Answers 8-9Contributions 10-11Transfers 12Investments 13Benefits 14-15Death 16Other important information and notes 17-18

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Company Registration Number: 07990504. Authorised and regulated by the Financial Conduct Authority. FCA number: 653170 December 2018

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Forthplus Pensions Limited are the Scheme Administrators for The Forthplus SIPP, a Self

Invested Personal Pension, which is a UK based, personal (non-workbased) pension,

registered with HMRC.

A Scheme Administrator is responsible for operating a pension scheme. Forthplus Pensions

Limited are regulated by the Financial Conduct Authority (FCA), the independent financial

services regulator in the United Kingdom, with the regulatory reference: 653170, with

permissions to establish, operate and wind up pension schemes.

The Scheme Administrator has established the pension scheme using a Trust Deed and has

appointed Forthplus Trustees Limited as the Scheme Trustee. Forthplus Trustees Limited are

an entity set up specifically for the purposes of being Trustee to pension schemes, and are

separate from the Scheme Administrator. This means that all of the assets and holdings of

the pension scheme are completely separate from the company which provides and operates

the pension (the Scheme Administrator).

The pension scheme is called The Forthplus SIPP and was established by Trust Deed on

30th October 2015 and is registered with HM Revenue & Customs (HMRC). The Pension

Scheme Tax Reference (PSTR) with HMRC is 00827309RK, and the Scheme is operated

in accordance with the rules and regulations of HMRC, tax legislation and in line with the

requirements of the FCA.

A Self Invested Personal Pension (SIPP) is a savings product which allows you to provide for

yourself and your beneficiaries in retirement. A SIPP comes with greater flexibility over your

investment options than some other pension vehicles, giving you greater control over how you

invest for your retirement. The investment options are subject to the investment restrictions

of HMRC and our investment policy.

There are alternative types of pension schemes available, such as a Stakeholder Pension

Scheme, which may be more appropriate to your circumstances. Further information is available

on the government website, www.pensionwise.gov.uk and through your professional adviser.

You can fund your pension plan by making one-off contributions, regular contributions and by

transferring other pension plans into the scheme.

A SIPP gives you the flexibility to choose when you want to start to take benefits, the amounts

you want to take, and can also provide benefits to your dependants following your death from

the remaining value of the plan.

The Key Parties and the Product

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You should take the time to read and understand this document, alongside

the Terms and Conditions, the fee schedule and the declarations in the

application forms. You should understand the product which you are

applying for, as well as understand the risks.

You should consider this product against other products in the market to

make sure it is appropriate to your circumstances.

You should contribute amounts appropriate to be able to support yourself

in retirement. There is no penalty for ceasing or varying your contribution

amounts, but you must be aware that reducing contributions will have an

affect on the amount you will have in your plan to provide for your retirement.

Where you transfer pension plans from other providers into The Forthplus

SIPP you will be giving up any entitlement under that Scheme. It is your

responsibility to ensure that this is the appropriate action to take. You should

take advice from a regulated professional adviser to consider the benefits

and risks of this.

It is your responsibility to arrange for the transfer of pension plans from

other providers to The Forthplus SIPP and to get the appropriate advice prior

to taking these actions. If you are transferring from a pension plan with a

guarantee or where it contains safeguarded benefits (and the transfer value

is over £30,000), then you will need to take advice from an FCA regulated

professional adviser who holds the appropriate permissions to advise on this.

Your current pension provider will be able to confirm if your plan requires this

additional advice level. Irrespective of the type of pension being transferred,

we highly recommend you also take advice on this.

Forthplus Pensions Limited accept members who are introduced to The

Forthplus SIPP by professional advisers who are regulated to provide financial

advice in the jurisdiction in which you are resident. If you are a UK resident then

the professional adviser must be regulated by the Financial Conduct Authority,

or whose firm have the appropriate permissions passported into the United

Kingdom, and appear on the FCA Register accordingly. This requirement also

extends to replacing or appointing subsequent professional advisers to act

alongside you. It is your responsibility to find a professional adviser and validate

their credentials.

We do not provide any financial advice and do not make comment on the

suitability of this product, any other product, any investments you may

choose to invest with through the product, or any actions you wish to take,

such as the withdrawal of benefits. For advice relating to these matters

your professional adviser can assist.

We do, however, have a range of guides which provide you with some

information relating to your options. Also, the government website

www.pensionwise.gov.uk provides you with a range of factual information to

assist you in your decision process.

Your Commitment

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There are a range of risks which you must take into account when considering whether

The Forthplus SIPP is appropriate for you. The following details some subjects, but your professional

adviser will be able to go through more specific considerations based on your circumstances.

The purpose of The Forthplus SIPP is to allow its members to build up savings to provide

for retirement.

Three key risk factors specific to this product which you should consider when deciding if

The Forthplus SIPP is able to provide for you through retirement are:

• Funding the plan

• Investments

• Withdrawals

You should also consider other factors which may be outside of your control, such as the availability

of tax relief on contributions, changes in legislation and changes to the pension environment.

The Government has established an independent body to be able to provide further information

on this called the Money Advice Service, which is available at: www.moneyadviceservice.org.uk.

Additional to this is the site mentioned earlier, which is also provided by the Government,

www.pensionwise.gov.uk. You should review the content on these websites during your

consideration of the SIPP and other products.

Funding the plan

The amount that you contribute to your pension plan will have a direct impact on the value

of your pension plan at retirement. You should ensure that contributions are sufficient to be

able to provide an adequate income in retirement, taking into account the costs and charges

of the product and your chosen investments.

You can contribute to your pension fund by making one-off payments or by making regular

payments. You can make personal contributions, which is where you put the money into

the pension yourself, and also, your employer is able to make contributions to your pension

scheme for you. Personal contributions may be eligible to receive basic rate tax relief based

on your circumstances, which increases the amount contributed. Additionally, if you are a

higher rate tax payer, you may also be eligible for additional relief from HMRC. Employer

contributions do not attract tax relief.

There are limits on how much you can contribute to pension schemes and receive relief.

The limit is based on relevant earnings in the UK and the annual allowance. This limit will

be reduced further in respect of your Money Purchase pension schemes when you access

pension income under the Flexible Pension rules – this is called the Money Purchase Annual

Allowance. The Annual Allowance limit is the combination of all contributions to pension

schemes, not just the amount paid into this pension scheme, including contributions to Defined

Benefit schemes and contributions by your employer. The additional Money Purchase Annual

Allowance is only relevant to Money Purchase schemes, but once it applies, you are legally

obliged to inform all of your Money Purhcase pension providers that you have accessed your

Risks

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pension under the Flexible Pension rules. Furthermore, there is a limit on

the total value of all of your pension funds, called the lifetime allowance.

Exceeding this limit, subject to any protection applied for with HMRC, will

result in the excess being taxed and treated differently.

Further information is detailed within the Contributions section of these

Key Features.

Furthermore, not making sufficient contributions to your pension plan

over the years may result in you not having sufficient funds to provide

an income in retirement. Therefore, the amounts contributed need to be

carefully considered against your circumstances and requirements.

Investments can go down in value as well as up, and therefore, as detailed

below, there is an inherent risk with investments. You may benefit less

from investment growth on contributions if you delay making contributions

to your pension plan.

Transferring a pension from another provider into The Forthplus SIPP

means that you will be giving up any entitlement under the transferring

plan. This includes any guaranteed income, lump sums, protected

retirement ages and any other advantage that the transferring plan

may have offered you. You are legally required to seek advice from an

appropriately qualified FCA regulated professional adviser when you

transfer from certain types of pension schemes, being a plan which

provides guaranteed income on retirement and the transfer value is over

£30,000. We very strongly recommend you also seek advice from an

appropriately qualified regulated professional adviser when considering

the transfer of any pension plan, including consideration of the impact

on any underlying investments and where appropriate, any risks relating

to self managing your investments.

It is possible that the rules relating to tax relief on contributions may

change in the future and this carries a risk in relation to the amount you

are contributing to the pension plan.

Investments

The value of investments, as well as the potential income from those

investments, may fall as well as rise. You may get back less than the

initial amount invested. You may lose the entire investment amount.

Past performance is not an indicator of potential future performance.

Illustrations of expected performance may not be guaranteed and

guaranteed returns may not be achieved. Returns shown on illustrations

may not be achieved and costs associated with investments may be

higher than shown or may increase.

A range of considerations should be taken to mitigate these risks including

working with a professional adviser to build an appropriate diverse portfolio of

investments appropriate to your risk profile and circumstances. It is considered

extremely high risk for a pension plan to only have one or two investments,

as well as not having an appropriately diverse portfolio of investment types.

Some investments carry a greater risk than others, and these risks should

be considered when assessing and building the investment portfolio. A few

examples, though definitely not an exhaustive list, of these risks could be:

• The investment has only a small subscription or a lack of diversification

• The investment may not be covered by a compensation scheme,

such as the Financial Services Compensation Scheme

• The investment may have a lock in period, during which you will not be

able to withdraw funds, or during which withdrawals may carry penalties

• A selected investment may have reduced liquidity, meaning that

redemptions are slower or sometimes not possible for periods of time

• The investment is designed to be more adventurous in building

a greater return, giving a higher volatility on its value

It is also important to regularly review the investment portfolio to ensure it

is still current and appropriate to your circumstances and that underlying

factors have not changed the investment risk status taking it out of your

agreed risk profile.

We may make available documentation from investment providers in the

course of our operations, however, this information is only being made

available through us, and is in no way an endorsement or recommendation

of an investment. Any advice you require on your investment decisions must

be sought from your professional adviser. We also strongly encourage you

to do your own additional research during the consideration process, and

to monitor your chosen investments and providers on an ongoing basis.

If the value of your pension plan or an investment is small, the costs

associated with the plan may erode the value of your pension plan.

Additionally, there may be additional costs, payments, commissions

and other factors within investments and from investment providers

which further increase the total costs applicable to your pension and its

investments. High costs can have an impact on the ability for a pension to

grow, both in actual terms, and in real terms (relative to inflation), so you

should investigate these thoroughly to ensure everything has been taken

into account during the planning phases, and ongoing.

You should note that the tax rules relating to capital gains and income

from investments may change in the future which may have an impact on

the investment and its returns.

Risks (continued)

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Withdrawals

From the age of 55 you will be able to take benefits from your pension

(increasing to 57 in 2028). These can be taken as income, lump sums or by

the purchasing of an annuity.

Under the current income and lump sum rules for the SIPP, these can

come in the form of a tax free element and a taxed element. There is not

a limit on the amount of pension you can take out, although if you started

taking your pension before April 2015 you may be in capped drawdown,

which is limited. You can switch to flexible benefits (limitless) at any point,

although this will mean the introduction of the money purchase annual

allowance on contributions across all money purchase pensions.

Taking income payments earlier on in life or taking large amounts will

reduce the value of the pension and potentially its ability to provide an

income into the later years of retirement. Additionally, if you start taking

income earlier than planned, then this may have an impact on the pension

fund’s ability to support you, its longevity and its ongoing growth.

Your pension holdings may be subjected to additional tax levies if the

total value of all your UK pension holdings are greater than the Lifetime

Allowance – a limit which the government have put in place in respect of

the preferential tax advantages for pension savings. The limits are £1.25

million in the 2014/15 tax year, this reduced to £1 million in April 2016

through to April 2018, and is £1.03 million for the 2018/19 tax year.

In certain circumstances individuals may be eligible for, or may have been

provided with, protection in respect of these limits for pension savings

they have already built up. However, these protections may be conditional,

such as a requirement to no longer contribute to the plan, which may

affect your plans regarding pension savings.

You can use the pension fund to purchase an annuity, which is where you

transfer your pension fund in return for a lifetime income, often guaranteed

for a period of time to provide for beneficiaries, relative to your choice. You

can choose to take your tax free element and then transfer the remainder

to the annuity provider to purchase the annuity, or forfeit the lump sum in

favour of a higher income.

There is no guarantee that annuity rates will improve in the future.

If you elect to take an annuity, it may provide you with more or less

income than you may be able to get through remaining in the SIPP.

In taking an annuity, you will give up the benefits in the event of death

from your pension, such as the ability to pass on the pension as a lump

sum to your beneficiaries, in favour of whatever terms are offered by the

annuity provider.

It is usual that the provision of more protections, benefits and guarantees

will be provided in return for a lower initial income, therefore, an annuity

with a fixed income amount for life, and with no benefits for any dependants

will have a higher rate of income compared to an annuity which is fixed

to inflation rates and provides guarantees for your dependants should you

die within 5 years.

You should consider all of these factors, along with any other questions

you may have, with your professional adviser. They will also provide you

with information relating to your personal circumstances which you may

need to consider prior to applying to The Forthplus SIPP.

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Should I apply for The Forthplus SIPP?

The Forthplus SIPP is designed to give flexibility of the management of the pension plan back

to the member, allowing the member to choose how to invest their pension funds, and when

and how much the member wants to take as income.

With this increased flexibility, the product becomes more sophisticated because it gives a wider

range of choice and puts that responsibility onto you as the member to make the decisions.

The Forthplus SIPP may be appropriate for you if you:

• Want to save for retirement in a tax efficient manner

• Want greater flexibility over the investments of your pension fund

• Understand the risks associated with investments

• Understand that income and the eventual pension pot is not guaranteed

The product may not be suitable for you if you:

• Are planning on saving for a short term

• Want immediate, unrestricted or early (before age 55) access to these savings

• Need access to only a limited range of investments

Can I have a SIPP?

Subject to your application being accepted, Forthplus Pensions accepts people who wish

to build up UK pension funds, through contributions, or transfer pension funds from other

pension schemes.

If you are unsure whether a SIPP is the right product for your needs, please consult with your

professional adviser who will be able to discuss this product alongside your other options.

Is The Forthplus SIPP a Stakeholder Pension?

The Forthplus SIPP is not a stakeholder pension. A stakeholder pension is a relatively simple

pension solution with a limited range of investments and a range of governmentally prescribed

minimum standards including charges, minimum payment levels and terms and conditions.

These products are generally available and may be more suitable to your needs than a SIPP.

If you are unsure whether a stakeholder pension may be more appropriate, please contact

your professional adviser.

Questions and Answers

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How much does the SIPP cost?

The charges for the administration of the SIPP are detailed in the Fee

Schedule, which is supplemental to this Key Features Document.

You should read this document carefully to ensure that you fully understand

the charges of the pension scheme prior to applying.

This is available on our website and is reviewed at least annually.

Are there any other charges?

Further charges, payments and commissions may apply in respect of

banking, investments, third party providers, and in return for advice. These

could be paid initially, paid annually for ongoing services, or may be covered

by providers on your behalf, sometimes subject to you remaining in an

investment for a term (often this structure will result in penalties should

you remove yourself from an investment earlier than agreed, planned or

anticipated). Further information on the charges will be available on request

from the investment provider and through your professional adviser.

You should take your time to understand all of these charges collectively

and their impact on your pension savings, both initially, and in respect of

their impact of the pension to grow in value.

Can I pay my professional adviser using my SIPP Money?

The Forthplus SIPP does not pay commission to professional advisers,

so your professional adviser will usually be paid in one of three ways:

• You make an arrangement to pay them a fee directly

• You make an arrangement to pay them a fee from your SIPP’s bank

account by instructing us using the appropriate form (an ‘Adviser Charge’)

• Your adviser will be paid by the underlying investments, either as

commission or as a charge (not always applicable/available and

should be discussed before investing)

Your professional adviser is not allowed to pass on any of this amount

to you. You can only use your SIPP money to pay for costs and charges

which arise in respect of your pension. This means you would not be

able to use your SIPP to pay your adviser in relation to advice provided in

relation to other products, although you can use it to pay adviser charges

in relation to your SIPP.

What are the Terms and Conditions for The Forthplus SIPP?

The Terms and Conditions document sets out, alongside the Application

Form, Fee Schedule and the Trust Deed and Rules of the Scheme, the

full agreement for application and membership to the Scheme. You

should carefully read the Terms and Conditions, Fee Schedule and

Pension Illustration before signing the application form for The Forthplus

SIPP, and then ensure that you have read and understood all of these

documents before signing and submitting the application form. There

will be additional documents from third parties, such as key information

documents and fund fact sheets for your investments; these are separate

to the SIPP documents and you should read each of these separately

before making any investments.

What is the starting value of The Forthplus SIPP?

Forthplus Pensions do not normally expect any pension to start with

less than £20,000 if it is intended to be funded by regular contributions,

or £40,000 if it is to be funded by the transfer of pension funds and regular

contributions are not expected. Furthermore, we do not usually accept new

pension plans for individuals over the age of 55 where, unless you intend

to continue contributing to the pension plan or transfer additional plans,

the plan is not expected to exceed the value of £40,000 in any way other

than through investment growth. You should contact us for more information

before continuing your application if you think this may affect you.

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Personal Contributions

You can pay contributions into your pension plan and this will be treated

as a personal contribution. Additional to this, other people (other than your

Employer) can contribute to your pension plan on your behalf, which will

also be treated as a personal contribution for tax purposes.

You must complete the appropriate forms before making any contributions.

Tax Relief on Personal Contributions

Personal contributions made to your pension plan can attract tax relief of

basic rate tax up to a total of your UK relevant annual earnings, subject to

an overall Annual Allowance (£40,000 for 2018/19).

If you do not have any UK relevant income, you may still be able to contribute

up to £3,600 per year gross (£2,880 net) into your pension and receive

relief, if you have lived in the UK for any tax year in the last 5 full tax years.

If you do not qualify for any tax relief, or exceed your limits, you may still

be able to contribute to your pension, but you will not receive tax relief.

It is your responsibility to tell us whether you are eligible to receive tax

relief on contributions and you must notify us if this eligibility changes or

if you are going to exceed your permissible limits.

Further information on eligibility is available on the Pension Advisory

Service website, along with a range of additional resources,

www.pensionsadvisoryservice.org.uk.

Higher Rate Tax Relief

If you are a higher rate tax payer, you may be entitled to additional relief.

This is managed outside of the pension, between yourself and HMRC,

usually through your tax returns.

Employer Contributions

Your employer can also make contributions to your pension plan on your

behalf. These contributions do not attract tax relief for you or your pension

plan, but do count towards your annual allowance.

We will require an additional form from your employer for this, and if they

choose to make regular contributions, will need to make a declaration

(as regular employer contributions form a legal commitment).

Contributions after taking Flexible Benefits

If you take any of your pension income as Flexible Benefits, the Money

Purchase Annual Allowance will applying meaning you can contribute up

to £10,000 per year to your money purchase pension plans. You must

note, however, that this is across all Defined Contribution plans and not

just your Forthplus SIPP.

Contributions in excess of the annual allowances

If you contribute more than any of the applicable annual allowances

(£40,000 across all pensions; £10,000 on money purchase pensions

after taking flexible benefits), any personal contributions where you are

claiming tax relief, and any employer contributions, your contributions will

be liable to the Annual Allowance tax charge of up to 45% of the value of

the Contribution.

Minimum and Maximum contributions

There is no maximum contribution, though you will attract a tax charge

if you contribute more than the Annual Allowances or you build up more

than the Lifetime Allowance in your pension fund.

For The Forthplus SIPP, the minimum one off (ad hoc) contribution amount

is £1,000 net of tax and the minimum regular monthly contribution is

£250 net of tax.

How to make contributions

Contributions can be made by cheque, standing order or bank transfer

directly into the bank account for your SIPP. The reference of your policy

and your name should be quoted on all payments. Any tax relief due

on the contribution will then be reclaimed and paid into the SIPP’s bank

account on receipt.

Any contribution made needs to be accompanied by a form notifying us

of the payment. Without this form, we may have difficulties allocating

the payment to your policy, and may have to return the payment or

we may not be able to claim any tax relief, if you are due any. If the

payment is intended to be regular, a form can be provided before the

first payment. If it is intended to be ad hoc, then a form will need to be

provided each time.

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What if I have Lifetime Allowance protection from HMRC?

A range of protections have been put in place over time as the lifetime

allowance rules have changed to limit the impact on members who may

have been adversely affected by the changes in legislation. Where you

have applied for protection from HMRC and you make a contribution,

you may lose that protection entirely. You should check this before making

any contributions..

What is the Annual Allowance for contributions?

The Annual Allowance is the limit for tax relieved savings into a pension.

The annual allowance for a pension input period for 2018/19 is £40,000

across all pension plans. This is measured by the sum amount of

contributions made to any pension plans, by you, or on your behalf

(including contributions made by your employer) and the increase in any

Defined Benefit (often referred to as Final Salary) entitlements. It is your

responsibility to ensure you remain within these limits.

The increase in Defined Benefit entitlement is £16 for every £1 per annum

of pension increase. Therefore, if your defined benefit pension increases

from £20,000 per annum to £20,100, then the Annual Allowance used by

that increase of £100 will be £1,600.

When you start to take income in excess of your 25% tax free amount

through a flexible pension, the money purchase annual allowance

decreases to £10,000 (combined across all money purchase pension

plans) from that point forward.

The pension input period for The Forthplus SIPP has been aligned with the

tax year, and will remain such unless you notify us that you wish to use a

different date.

Exceeding the Annual Allowance

For any amounts in excess of the Annual Allowance, you and your employer

must not receive any tax relief on those contributions, or you may be faced

with an annual allowance tax charge. This charge will be added to the

rest of your taxable income, although, if the tax charge is going to be more

than £2,000, you are able to have it paid from your pension fund.

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Can you transfer existing pension plans into The Forthplus SIPP?

Yes, you can. You can transfer some or all of your other pension plans

into The Forthplus SIPP, subject to the approval of the providers of your

previous scheme, and from us, that we will accept the transfer.

In order to transfer your pension plan to The Forthplus SIPP you will

need to complete a Transfer-In form for The Forthplus SIPP, which will

request the transfer from your existing provider. Your existing provider

may need some extra forms completing or some documentation from

you to complete the transfer, so it is worthwhile contacting your provider

separately to confirm what they need to expedite the transfer.

With some pension plans it may not be possible to transfer the plan.

Providers of Defined Benefit pension plans which are either due to come

into payment within 1 year, or which are already in payment, are not

obliged to transfer your pension benefits, and therefore it is unlikely that

these will transfer.

Members of unfunded public sector pension schemes are no longer able

to transfer out. The Local Government Pension Scheme (LGPS) is a funded

arrangement so transfers from this scheme are still permitted.

It is a requirement from April 2015 that members wishing to transfer any

guaranteed pension or pension with safeguarded benefits valued at over

£30,000 must seek advice from an appropriately qualified FCA regulated

professional adviser prior to transfer.

With Defined Contribution pension schemes, such as SIPPs and personal

pensions, you are able to transfer your benefits from these before or after

taking benefits.

Please note that you are responsible for the transfer of your existing

pension plan, and that we strongly recommend you take financial advice

from an appropriately qualified professional adviser on the transfer, taking

into consideration the risks and advantages of the ceding scheme, the

receiving scheme, and considering the alternative options.

You are not able to transfer the State Pension.

Transferring Investments

You may be able to transfer existing pension plans without selling your

investments; this is called an ‘In-Specie’ transfer. Please note that you will

need to confirm that we are able to receive the investments, as we have

an investment policy which defines the types of investments we accept

into our pension plan which may differ from the transferring provider.

Furthermore, it may not be possible to transfer some investments for

a variety of reasons, such as the inability of the investment provider

to reassign ownership, or the investment being exclusive to that

pension provider.

You should seek advice on the transfer of investments as such a re-

registration of assets may change the terms of the investment, such

as charging arrangements, or the conversion of assets into a different

share class.

How long does it take to transfer?

Pension transfers can be complex or may require the input of various

parties and therefore may take some time, especially when assets are

being transferred in-specie.

Under normal circumstances, noting the considerable complexities

involved in transferring some Defined Benefit schemes, we would

anticipate transfers to complete in under 8 to 12 weeks from the point

where all information has been received. This is usually much quicker for

personal pensions.

However, with the prevalence of so many pension scams and other risks

to peoples hard earned pension savings, we are, as are all reputable

pension providers, obligated to ensure that any transfers will not risk

your pension savings, and therefore additional controls and checks may

be used to protect you, which can sometimes add a bit of time.

Can I transfer my Forthplus SIPP to another provider?

Yes, you can transfer part or all your pension plan to a UK registered

pension scheme or a Qualifying Recognised Overseas Pension Scheme

(QROPS) at any time.

To start this, complete the relevant form for the receiving scheme and

contact us to request a copy of our Transfer Discharge Form. As with

transferring in, you can transfer as cash or in-specie, subject to your new

provider being able to receive the assets.

If you transfer to a QROPS then we will perform a check against

your lifetime allowance and if your total benefits exceed the lifetime

allowance, a tax charge will be levied against your pension plan and

settled prior to payment of your benefits. As there are a range of

additional matters to consider, partial transfers are made at the

discretion of the Scheme Administrator.

Transfers

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The Forthplus SIPP is a Self-Invested Personal Pension and therefore

the investment decisions remain with you. However, as a responsible

provider, we have instilled a range of additional requirements over the

types of investments we will allow within the pension scheme.

Separate to this Key Features Document we have an investment policy,

which is available online and on request. In there we note the base criteria

for an investment to be permissible and a range of additional conditions

and controls we instill over and above that for your protection, and that of

other members within the scheme.

For any investment to be held within the pension scheme, we must first

approve the investment. Furthermore, we will continue to monitor any

decisions and may alter our ruling subsequently.

The base criteria for an investment to be permissible is that it conforms to

one of the following investment types::

• Bank account deposits

• Cash

• Cash funds

• Corporate bonds

• Exchange traded commodities

• Government & local authority bonds and other fixed interest stocks

• Physical gold bullion

• Investment notes (structured products)

• Shares in investment trusts

• Managed pension funds

• National Savings and Investment products

• Permanent interest bearing shares (PIBs)

• Real estate investment trusts (REITs)

• Shares admitted to trading on a regulated and listed exchange,

as per HMRC listings

• Units in regulated collective investment schemes

If you do not know if an investment is covered by this list, please contact

your professional adviser. All investments need to be approved to be used

in The Forthplus SIPP by the Trustees and Scheme Administrator.

Within The Forthplus SIPP it is possible to open up trading accounts,

portfolio accounts, investment bonds and similar through which you can

hold investments, however, it must be noted that these restrictions carry

through into those accounts as well.

We do not provide any advice nor do we assess the suitability or

appropriateness of investments. You should discuss your investment

choices with your professional adviser.

Dividends

Any dividends, coupons or remuneration paid by investments for the

benefit of the investor and not retained (reinvested) within the investment

or investment wrapper will be paid to the pension scheme’s bank

account. Dividend payments and any other benefits cannot be paid to

the member directly.

Tax

Pension savings attract a range of tax benefits, however, tax on dividends,

deducted at source, cannot be reclaimed. Where tax is deducted at

source from an investment and the Scheme is eligible to reclaim this tax,

it will be reclaimed from the tax office by the Scheme Administrator.

Valuations

Annual valuation statements of the pension scheme will be provided to

members annually. Members with online access will be able to get annual

statements online.

Investments

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When considering making withdrawals from your pension we strongly

recommend that you seek professional financial advice to consider the

risks and benefits. The Government’s Pension Wise website is a free and

impartial government service that helps you understand your pension

options: www.pensionwise.gov.uk

Financial Conduct Authority (FCA) rules require us to ensure that we

give appropriate retirement risk warnings to consumers accessing their

pension savings. These rules have been introduced to make sure you

are aware of any risks that are involved in making withdrawals from

your pension.

Therefore, if you do contact us in regards to arranging a withdrawal then

we must ask you relevant questions, based on how you want to access

your pension savings, to determine whether risk factors are present.

If they are, we are obliged to issue you with risk warnings.

When can you start to take income from your pension?

The Forthplus SIPP has a minimum pension age of 55 years old (57

from 2028). From this age you will be able to start taking income from

your pension fund to provide for you in retirement, should you wish.

There is no requirement to start taking benefits from your pension

scheme, and there is no maximum age from which you need to start

taking benefits.

Taking your pension through The Forthplus SIPP

Within The Forthplus SIPP you are currently able to either take Flexible

Benefits from any undesignated portion of your pension fund in the

traditional manner, which is to take up to 25% of any designated amount

(subject to the lifetime allowance) as a tax free Pension Commencement

Lump Sum, and then designate the remaining 75% to provide you with

income at any point (which will be liable to income tax), or you can take

an Uncrystallised Pension Fund Lump Sum (UFPSL), which is where

you can take a lump sum from your pension, up to the full value of the

unused part of your pension, with 25% of it tax free, and 75% of it taxed

as income.

For any part of your pension which you have already designated for

benefits, you can withdraw as much or as little as you like, but it will all be

subject to income tax.

It is important to note that as soon as you withdraw any income portion

under the Flexible Benefits rule, then the Money Purchase Annual

Allowance described in the Contributions section will apply.

Any amount of pension in excess of your Lifetime Allowance will be

treated differently at the point of designated benefits. Please refer to

“How are benefits in excess of the Lifetime Allowance treated?” later on in

this section for more details relating to that.

If you transfer into The Forthplus SIPP whilst in Capped Drawdown, you

may be able to continue with that Capped Drawdown until you confirm

to us that you wish to switch to Flexible Benefits.

Benefits

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Income Drawdown, which is the way that benefits are taken if you take

them from within the pension, allows you to take 25% of the pension

fund as a tax free lump sum, and then the remaining 75% can be used to

provide you an income. The amount of income is unlimited unless you are

in Capped Drawdown, when it is roughly based on 150% of the amount of

income you can get from a single life annuity.

How much tax do I pay on pension payments?

Out of the amount of the pension you have chosen to use for benefits

(crystallised) you are able to take the lower of the following:

• 25% of your pension fund value

• 25% of the lifetime allowance (£1.25 million for 2014/15, £1 million

for 2015/16), 2016/17 and 2017/18, £1.03 million for 2018/19)

as a tax free lump sum from your pension at the commencement of taking

benefits. Where you have protection in place, you may be entitled to more

than the standard lifetime allowance.

The remainder of your pension will be provided taxed on payment using

the Pay as You Earn (PAYE) payment system.

Can I withdraw my whole pension fund in one amount?

Yes, with Flexible Benefits, you are not limited on the amount of pension

you can take. However, withdrawing the whole pension fund means

that your pension plan will have no further funds, meaning that it

cannot provide ongoing income for you in the future. There may also be

major tax implications to withdrawing your whole pension fund and we

strongly advise that you seek professional financial and tax advice before

considering this step.

Can I contribute after I have started taking benefits?

Once you have started to take pension income as flexible benefits,

with any provider, your annual allowance for money purchase pension

schemes will reduce to £10,000 across all of your pensions combined.

Any contributions in excess of this may attract tax charges.

You are not able to take your tax free cash payment and reinvest this

amount into your pension as a contribution, as this will be considered as

recycling and attract significant tax penalties.

How is income over the lifetime allowance treated?

Once you have used up all of your lifetime allowance, any amounts in

excess of this can be either paid out as a lump sum, subject to a flat

55% tax charge, or can be designated to provide you with future pension

income, with an initial 25% tax charge, and then income tax to apply on

any withdrawals.

You can only choose how to apply this once, as it is a crystallisation event.

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What happens to my pension when I die?

With a SIPP you are able to pass on any residual pension value as a lump

sum or as pension income to your nominated beneficiaries.

Can I say who I want to receive my pension benefits when I die?

On your application form you will be able to nominate who you wish to

receive your pension and the percentage you wish to allocate to that

individual. The Scheme Administrator will then take this nomination into

account when arranging for the dispersal of pension benefits.

How will the benefits be passed on to my nominated beneficiaries?

Your nominated beneficiaries will be notified that you have pension

benefits to be passed on. They will be given the options available to them

so that they can confirm how they wish to take on the benefits.

The options currently available to them are to take the amount as a lump

sum, paid straight to their bank account, or to have the amount paid as

an income.

What tax applies to death benefits passed on to my beneficiaries?

If the Member is under the age of 75 when they die, the whole value of

the pension can be passed on tax free, subject to your lifetime allowance.

If the Member is over the age of 75 when they die, payments to the chosen

beneficiary will be subject to income tax at the beneficiary’s marginal rate.

There are no restrictions on the level of withdrawals that can be taken, or

may be able to be transferred to your nominated beneficiary for them to

take as a pension.

Does the Lifetime Allowance still apply to the payment?

Yes, the Lifetime Allowance (£1.25 million for 2014/15, £1 million for

2014/15, 2016/17 and 2017/18, £1.03 million for 2018/19).

Death

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Documentation you should read

This Key Features Document forms part of the documents which make

up The Forthplus SIPP, and should be read in conjunction with the Terms

and Conditions, the declarations within the Application Form and the

Fee Schedule. On application or during the advice process you will be

provided with an illustration for The Forthplus SIPP as well.

Your professional adviser will provide you with their own recommendation

documents such as a suitability assessment and will be able to provide

you with the information pertaining to your investment options.

Additionally, you should read our privacy policy which is available online

and or on request.

Governing Rules of the Scheme

The Forthplus SIPP is a Self-Invested Personal Pension set up under a

Trust Deed dated 30th October 2015.

The Trust Deed and Rules govern the establishment, operational limitations

and structure of the Scheme, and are available for inspection on request.

The Terms and Conditions set out the specific parameters, obligations and

operating limitations of the Scheme, which are available on our website and

on request.

Right to cancel

You have a legal right to cancel your SIPP application within a 30 day period

from the date of the letter confirming establishment of the SIPP. Further

information on this right and other similar rights, such as the right to

cancel a transfer, is included in the Terms and Conditions of The Forthplus

SIPP. During this period Forthplus Pensions Limited may require you to

retain your fund in your designated bank account until the cancellation

period has elapsed after which we can proceed with any investment

instruction, or arrange payment of your benefits. If instructed otherwise,

we will only be able to return the prevailing value subject to any losses or

gains, and after all costs and charges. Once the SIPP is established the

setup fee is due and will not be refunded, should the SIPP not be taken up.

If you wish to waive your rights to this 30 day cancellation period you can

complete the waiver on the Forthplus SIPP Application Form.

Waiving your entitlement to cancel will mean that you will not have the right to cancel and therefore you should carefully consider this before you instruct this on application.

It is not possible for transferred money held for onward transfer as a result

of cancellation to be paid to you in any way. It must stay within a pension,

and it can only be transferred to a registered pension scheme or a QROPS.

In order to minimise the effect of any charges or change in value of your

pension plan, we will not, unless instructed explicitly otherwise, action any

investments until your policy cancellation period has expired.

You can cancel your pension plan by writing to us at the following address:

Cancellation Request, Compliance Manager, Forthplus Pensions Limited

Clarendon House, 114-116 George Street, Edinburgh, EH2 4LH.

Alternatively, you can fax or email the instruction with the original to follow

in the post.

Compensation Scheme

The Forthplus SIPP is covered by the Financial Services Compensation

Scheme (FSCS). The FSCS has been set up to cover compensation where

the company is not able to meet the claims made against them.

Your pension scheme’s bank account is covered up to £75,000 through

this scheme and most UK regulated investments will have cover relative

to the product they provide. Investments which are not regulated in the

UK may have different or even no compensation scheme available should

they not be able to meet claims against them, which should be considered

when placing investments. It is your responsibility to ensure this before

instructing us to invest.

Further information on the FSCS is available on their website at:

www.fscs.org.uk.

What advice can we provide to you?

We are not able to provide you with any advice or any assessment of

suitability or appropriateness, either of the pension product, or any of the

underlying investments, or anything else relating to financial, tax, legal or

any other form of advice or opinion.

You should seek the advice of an appropriately qualified and regulated

professional adviser for any advice and decisions which need to be made

in respect of your pension plan.

Other important information

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Other important information (continued)How to Contact Us

If you have any questions or would like any information, you can contact

us via your financial adviser, which is the normal route, but also are able

to communicate with us directly.

When you have access to our online portal, you will be able to send us

communications through there, and alternatively, you can contact us using

our postal, email and telephone details below:

Our contact details are: Forthplus Pensions Limited, Clarendon House,

114-116 George Street, Edinburgh, EH2 4LH

Telephone: +44 (0) 345 646 0156

Email: [email protected]

Most of our communications are made through your professional adviser

so that they can assist in your understanding and with any queries you may

have and explain the information you receive. In certain circumstances we

may contact you directly to verify information, or where we deem it necessary.

Unless explicitly directed by you otherwise, we may share any

communications or questions with your professional adviser to enable them

to assist you further and better manage your ongoing relationship. Please

refer to our Privacy Policy for further information on how we manage this.

What if I want to change my professional adviser?

You may wish, or need to change your professional adviser during the life

of your SIPP. The reasons for this could include that you have moved to

a different jurisdiction in which the adviser is not regulated to operate,

or your circumstances may have changed.

If you wish to change or add a professional adviser to your SIPP, you can

request a Change of Adviser form from us using our contact details above,

or through the online communication system.

What if you want to make a complaint?

We always strive to provide the best possible service so we take any

complaints very seriously, both addressing any concerns, and also ensuring

that we modify our procedures to prevent the recurrence of any dissatisfaction.

We have a very strict complaints procedure, so if you wish to make a

complaint, we request that you put it in writing so that we hold adequate

record, including as much information as possible to allow us to investigate

the matter thoroughly for you. Please contact our Compliance Manager

in writing, by email or by fax using the contact information in the “How to

Contact Us” section.

Data Protection

We are committed to protecting and respecting your privacy and will

comply with all data protection laws in the country you are resident and

use the European Economic Area’s General Data Protection Regulations

(GDPR), in force 25th May 2018, as the standard.

Full details of how we treat your personal data can be found in our Privacy

Policy available on our website or requested from us directly or from your

professional adviser.

Important notes

The information contained in this document is based on our current

understanding of the law and may be subject to change without notice.

This product is provided from the United Kingdom and the laws of England

and Wales apply to the product and the companies.

Where there is any contradiction between this document, and any other

literature relating to the SIPP, and the legislation and regulations governing

the product, the legislation and regulations will prevail.

Copies of all of our literature is available on request through your

professional adviser, or on request to us.

The Forthplus SIPP is a retirement product designed to help you save in

a tax efficient manner to provide an income in retirement. It is illegal to

attempt to access your pension funds prior to the minimum retirement age

or in amounts exceeding the permitted sums.

Pension Liberation is a very real threat to pension savers and carries

with it a range of legal ramifications in addition to potentially ruining any

retirement planning. You should be careful of individuals offering early

access to pension funds through any route. Further information can be

found on the Money Advisory Services website:

www.moneyadviceservice.org.uk/files/a_lifetimes_savings_lost_in_a_

moment.pdf

Useful Websites

Some useful websites for additional information around pensions are:

www.moneyadviceservice.org.uk/en

www.pensionsadvisoryservice.org.uk/

www.pensionwise.gov.uk/

www.thepensionsregulator.gov.uk/

www.hmrc.gov.uk/manuals/ptmanual/index.htm

FORTHPLUSPENSIONS

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www.forthplus.com

FORTHPLUSPENSIONS

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Registered address:

Elma House, Beaconsfield Close,

Hatfield, Hertfordshire, AL10 8YG

Registered in England and Wales

Company registration number: 09459216

Authorised and regulated by the Financial Conduct Authority

FCA number: 653170

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