Why not do the TBOP?
A Trustee Buy-Out Plan (TBOP) allows the Trustees of money purchase occupational pension schemes (OPS) to transfer accrued benefits into a buy-out vehicle with Standard Life, similar to a Section 32 plan, as part of the scheme wind-up. TBOP can accept Protected Rights benefits – allowing it to be used to wind-up contracted-out OPSs, and commission may be payable.
Commission Option for TBOP
There are two types of commission available on TBOP:
All schemes will be individually priced and the types and levels of commission will be agreed dependent on the exact new scheme details.
How does Single Premium Initial Commission (SPIC) work?
SPIC is term related and therefore dependent on each individual member’s age and retirement date.
Where commission requested is expressed as a fixed percentage across the whole scheme we will broadly be able to match this as an average across the expected membership. However, because it is term related and dependent on each member’s circumstances the actual commission paid out depends on the final membership of the TBOP. Unless all members' benefits are bought out, the commission amount paid as a percentage is likely to be different to the figure estimated.
Please note that this includes loyalty commission (maximum 2% plus uplift), therefore if the member’s fund does not remain with Standard Life for a period of at least 3 years and the fund reduces to zero then we will reclaim all of the loyalty commission (except on death).
How does commission impact the price?
To see the possible impact of commission on TBOP transfers ask your Standard Life account manager for a copy of the generic illustrations of TBOP106 and TBOP106NC (the latter is the nil commission version).
Additional information on Commission
Standard Life can pay commission on additional Single Premiums of at least £1000. This is because TBOP allows individuals to pay one Single Premium (min £100) after wind-up, which can give a larger tax-free lump sum (if the funds grow faster than the Lifetime Allowance).
Advantages of TBOP
Notes
1. TBOP is only available for money purchase OPS not currently with Standard Life.
2. TBOP cannot accept benefits directly from a Final Salary OPS, nor can it accept Guaranteed Minimum Pension (GMP) liabilities.
Tax and legislation are liable to change. This information is based on Standard Life's current understanding of law and HM Revenue & Customs practice. Tax rates and reliefs may be altered. The value of tax reliefs to the investor depends on their financial circumstances. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of these comments.
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