The basics

• We offer a flexible Small Self Administered Scheme (SSAS) aimed at controlling directors and key executives.
• A SSAS is an occupational pension scheme with less than 12 members, who are likely to be the controlling directors and can include key executives. Therefore a SSAS can be ideally suited for family controlled or small companies.
• The Legal & General SSAS offers you access to a highly tax efficient way of saving for retirement, whilst at the same time providing the option to widen the scheme’s investments and enjoy the many benefits these alternative investments offer to your business, enabling expansion. For instance, purchasing commercial property in a tax free environment or making a business loan to the company.
• The SSAS provides the facility to use the funds invested in the pension scheme to benefit your business.
• The Legal & General SSAS has been designed to offer you a flexible solution to changing investment needs. Whichever options you select you can be confident that our experienced team will be there to help you. In addition our SSAS Client Managers are available to attend meetings with you to discuss any aspects of SSAS business face to face and tailor a scheme and service package to achieve your aims.

The value of the units which make up a fund can go down as well as up, so the value of an investment is not guaranteed.  It is particularly important to remember this if a member is close to taking their benefits. Please remember that the money is tied up until a member takes their retirement benefits. Please view the other risk factors associated with this product.

The Small Self Administered Schemes Department deal exclusively with the self invested and insured elements of the SSAS pension arrangements. This includes property purchase, pension scheme loans to employers, share purchase and sale etc. For more information either email SSAS_SIPPDEPT@landg.com or contact 01737 375724/20. Please note we can only give information or advise on Legal & General products. We may record and monitor calls.

Your options

• A Legal & General SSAS offers a wide variety of investment options. Firstly Trustees can invest in funds which are managed exclusively by the insurance company asset managers using the trustee investment contracts.
• Other investments include:
  
  · Stock exchange securities (either with a full or AIM listing)
  · Unquoted shares (specifically subject to the approval of the SSAS Department)
  · Bank and building society deposits
  · Unit and investment trusts
  · Open Ended Investment Companies
  · Other insurance company funds
  · Commercial property (the SSAS can also borrow up to 50% of its net asset value).
  · Land for commercial development
• A unique feature of a SSAS is the ability to make a loan to the employer of up to 50% of the net scheme assets. The loan has 5 criteria that must be met:
  • Security - The loan must be secured throughout the term by means of a first charge on company assets, which is at least equivalent in value to the face value of the loan including interest.
  • Term of the loan must not exceed 5 years
  • Repayments - All loans must consist of regular repayments of capital and interest in equal instalments throughout the term of the loan.
  • Interest rate – this is generally 1% above the base rate of the 6 main clearing banks
  • Amount - the loan cannot exceed 50% of the net scheme assets.
• Options on retirement that the SSAS can offer

· income drawdown payments
· annuity purchase
· alternatively secured pension payments

Risk factors

All investments carry an element of risk. Please bear these points in mind:

• The value of the investments which form the fund can go down as well as up so the value of the member's fund is not guaranteed. It is particularly important to remember this if the member is close to taking their benefits. Please remember that the money is tied up until a member takes their retirement benefits. Also assets may have to be realised before a member can take their retirement benefits.
• The amount of pension income provided by a retirement fund will depend on a number of things, including charges, investment returns and the rates available to buy a pension when a member decides to take their benefits.
• The assets you choose to invest in will have specific risks. To assess these risks we recommend you speak to a Financial Adviser.
• Different investments include funds which may have different levels of charges. If funds are switched at some point in the future, higher charges may end up being paid, which in turn may affect the benefits payable from the policy.
• The law and tax rates may change in the future and the value of tax relief will depend on an individual’s circumstances.
• Past performance is not an indicator of future performance.
• If you are an employee:
   

  · What you receive from With Profits investments will depend on future bonus rates, which are not guaranteed and can change. Future bonus rates may be reduced if, for example, our expenses are higher than anticipated or there is an increase in the expected cost of guarantees and options for With Profits policies.
  
  · Any investment in With Profits will share in the risks of other With Profits pension plans which can reduce your bonuses and therefore the amount we pay you. You also share in the risks of other With Profits policies such as bonds.
  
  · We write With Profits and non profit policies in our Long Term Fund. We provide guarantees for both With Profits and non profit policies and the assets in the whole fund are ultimately available to meet them. This means that although you may benefit from support from the assets backing non profit business, we could reduce the amount we pay you if we have to use the assets backing With Profits business to support non profit business.
  
  · We may reduce the amount we pay if you take your benefits early, transfer or switch out of With Profits. This is called a Market Value Reduction. We use the Market Value Reduction to treat customers who stay in With Profits fairly, as well as those who withdraw from it. The Market Value Reduction will usually be applied when investment conditions have been insufficient to support bonuses. It will also account for additional deductions that may be required to cover the cost of guarantees and options for With Profits policies.
  
  · We can increase our charges but we will let you know before we make any change.