Small Self-Administered Schemes (SSAS)
These are a defined-contribution (money purchase) company pension scheme which were originally designed for smaller companies to allow greater flexibility for a company wanting to provide pensions to senior-executives.
Small self-administered schemes were once very popular for directors of companies who could pull together their pension investments to purchase the company trading premises as part of their pension arrangement. As it is now possible to do this within a Self-Invested Personal Pension, these plans have become less popular because they are more complicated to set-up and because assets are pooled they are often very complicated to administer at retirement.
Small self-administered schemes are normally limited to 12 members who are often the Directors & Senior Executives of the Company. When members retire the pot must be split to ear-mark benefits to pay for the retiring member’s pension. This is where things can get complicated and hence the reason generally SIPPs are the preferred option for most companies looking at senior executive pensions.
At The Independent Advice Bureau Ltd we have many years’ experience with investment and tax planning using both Self-Invested Personal Pensions and Small Self-Administered Schemes and can provide you advice if you are looking at the potential of a SIPP or SSAS or currently have one in place.
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