How to set up a SSAS pension: 9 steps that can’t be missed
Wondering how to set up a SSAS pension? Here are nine things that you will need to think about to make sure your scheme is set up efficiently, simply and – most importantly – legally. It is worth pointing out that this whole process can be conducted by a specialist SSAS provider if you do not want to manage the process yourself.
Decide who’s going to be part of it
Your Small Self-administered Scheme (SSAS) can have no more than twelve members. Normally these will be directors or senior staff from the company that you work for. However, scheme members may also invite family members to be part of the SSAS. Either way, the first step is to finalise who is going to be part of the SSAS.
Choose a name
Your SSAS needs an official name. You can be as banal or creative as you like. From ‘The Smith Family Pension Scheme’ to ‘The M-theory Executive Pension Scheme’.
Appoint a scheme administrator
Unless you are working with a professional SSAS provider to manage your scheme, you will need to appoint one of your members to be the scheme administrator. Their duties will involve administrative responsibilities such as fulfilling HMRC obligations and keeping other trustees informed about how the SSAS is performing.
Gather up the paperwork
To create your SSAS you will need to collect legal information about the sponsoring employer as well as the personal details and signatures of each member of the scheme.
Don’t forget about anti-money laundering legislation
You have a legal obligation to comply with anti-money laundering legislation. Each member of the SSAS will need to have their identity verified.
Open a new bank account
You will need a t least one designated bank account for the SSAS., however you can establish multiple bank accounts to serve different purposes should you wish, such as to receive contributions and to handle investment income.
Register your SSAS with HMRC
You must register your SSAS with HMRC before you can start to receive contributions from your members. Upon registration HMRC will give you a Pension Scheme Tax Reference (PSTR) number: a unique code that verifies that your scheme has been registered for tax relief and exemptions.
Register with The Pensions Regulator
The registrations aren’t over yet. Next you need to register with The Pensions Regulator: the UK regulator for work-based pensions. It’s their job to make sure everything is above board with your pension.
Share explanatory information with members
You are likely to receive lots of paperwork during the SSAS registration process. This should be distributed to all members of the scheme to make sure every trustee knows what’s required of them and how they can access their pension.
Away you go!
Once you have completed the above steps you are all set to receive pension contributions and make investments. The application process will most likely take between four weeks and twelve weeks.
Need some help?
There are numerous benefits of a SSAS pension. But setting up and administering your SSAS can be time-consuming and complicated. If you would rather leave it in the hands of an expert, just let us know. We have helped thousands make smart SSAS decisions to bring more security to their financial futures. We can do the same for you.