Small Self-Administered Schemes (SSASs)

Small Self-Administered Schemes (SSASs) are one of the success stories of the pensions world.

They are a type of pension scheme established by an employer specifically for some of the directors and key executives. There can be set up for just one member or for up to 12 members. They are a particularly popular pensions vehicle for small family run companies.

Investment choice

SSASs can be particularly well suited for companies where the directors already have built up some pension provision which they wish to use in conjunction with the business but without tying the scheme provision to a single insurance company or provider. In this way, the SSAS could purchase the company premises to lease back to the company with the rental income forming a source of investment return to the SSAS.

Trustees are allowed to borrow funds to “gear up” in order to purchase commercial property. Residential property is not permitted.

Alternatively, the SSAS could lend funds to the company so that the interest and capital payments on the loan would be paid back into the SSAS bank account.

Many trustees set up their SSAS simply to take advantage of the freedom to purchase their chosen quoted shares, unit trusts and managed funds without the constraints often imposed by other packaged products Each of the members controls the investment decisions by also acting as one of the scheme trustees. The member trustees can also choose a suitable bank to set up the trustees’ bank account.

Our role

We have provided trustee, actuarial and administrative services to SSASs for many years. Prior to A-Day (5th April 2006), all SSASs were required by HMRC to appoint a professional trustee to act alongside the member trustees. The professional trustee was referred to as a Pensioneer Trustee and our trustee company, Act4You Trustees Limited, was one of the HMRC panel of approved pensioneer trustees.

Whilst such appointments are no longer legislatively required, SSASs still require expert advice and administrative guidance as there can be adverse financial consequences for the trustees if the correct investment and reporting guidelines are not followed. Whilst the responsibility for proper management of the SSAS is now in the hands of the Scheme Administrator, usually the body of trustees, we continue to work closely with our SSAS clients to ensure compliance. Some of our clients prefer to appoint us as one of the co-trustees whilst others are happy with a structure where they act as the trustees and we fulfil an advisory role alongside them. The choice rests with the clients.

We will be pleased to work alongside your chosen advisers to ensure that the correct administration of the SSAS and advice on benefit provision as and when necessary. You can choose to appoint your own scheme bankers, investment advisers, solicitors, accountants as you require.

Can we help you?

Our SSAS clients are split roughly equally between those schemes which we set up from scratch at the clients request and those where we were appointed to manage an existing SSAS in place of the existing advisers.

We charge an initial fee to set up the SSAS or to take over the administration of an existing scheme. Thereafter that we charge a regular fee for acting as a trustee and administrator, reporting requirements, any investment related work which may arise and discussion of benefit options at retirement.

Please let us know if you would like to discuss either establishing your own SSAS or if you would like us to provide you with an indication of our fees for taking over the management of your existing SSAS.

Please contact us by email for further details……..