Pension Trustees - ADPP

[John Chiesa]

On a recent ADPP I noticed that when members were surrendering their benefits, they were also signing documents as Trustees of the scheme.
Baxendale Walker have indicated to me that this is incorrect.
NMPJ International Limited should be the only Trustee/Administrator of the scheme and the Directors of the FIDCO should not sign as Trustees.

Please see the comments below from --------- of ---------- Trustees on the question of FIDCO Directors also acting as Trustees of the SSAS.

My concern here is that if the Revenue were to challenge the structure and seek to impose any charges, these would be on the scheme Trustees. It somewhat defeats the object of the exercise if our clients, i.e. the Directors of FIDCO are also Trustees of the scheme and could be liable for the charge.

Quote:Subject: RE: ADPP
The main issue as I see it is that SSASs have exemption from Pension Act
1995 requirements if all decisions are unanimous and if all members are trustees. Therefore all SSAS deeds have this in there deed and the legal opinion that we have previously received is that it is best if the other trustee is also a signatory to the pension scheme bank account. The other option is that although one trustee signs the cheque the other trustee would need to declare in writing that they also 'unanimously agree' to the payment - so effectively the same thing.

Where we are taking over a SSAS scheme from someone else and using their documentation then I think there is a real risk of possible breach of Deed if we looked at just one trustee signing as this is not a standard way of operating in the SSAS market. Breach of deed could in my view unravel the strength of the entire process by undermining the paying back of surplus to the company.

Has the member signing from the pension scheme been causing issue?

Not having exemption from the PA 1995 would add significant costs to the process as auditors would also need to be appointed.

[BAXENDALE WALKER LLP]

Your point is right.

It's a bit difficult to understand where the Pensions Administrator is coming from with this:

1. Any registered pension scheme is allowed to have just the Administrator Co as its administrator.
2. If there is an old style SSAS Deed, it can usually be amended to conform with the post 2004 law
3. If the Deed can't be so amended, just transfer to a new Administrator only New Scheme