Independent Trustee Company (ITC) winding up Small Self-Administered Schemes (SSAS)

T

time to plan

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This has been coming for a while but is a pain. Just received the email below. Main problem is that I need to think about this all over again. Will talk to Financial Adviser but I liked the way I had things set up in terms of:

1. Large contributions from company (I am proprietary director)
2. Low fees
3. Large choice of funds incl. Vanguard tracker funds without opaque charges that might explain how bug insurance house 'own brand' trackers underperform.

Please see below information in relation to your ITC Small Self-Administered Scheme (SSAS).



Background

Following the introduction of IORP II, Independent Trustee Company Ltd (ITC) worked extensively with financial advisors and clients to wind up and transfer all SSASs that were established on or after the 22nd April 2021, to alternative pension arrangements. We did this as the ongoing costs to clients in maintaining a SSAS in a manner consistent with the Pensions Authority regulations and expectations was going to be unfeasible.



What is changing now?

We will cease providing trustee and administration services for SSASs at the end of 2025. Whilst there is a derogation given to all schemes established before the 22nd April 2021 until April 2026, given the volume of schemes and assets held in these schemes, we need to start acting now to ensure schemes are fully transferred ahead of the deadline.



We will be applying an additional administration charge of €900 plus VAT to all SSAS renewals after 1st July 2024. What this means is that if the SSAS renewal date is the 31st March 2024, then the additional charge will only apply to that SSAS if it is still in existence at the end of March 2025. Therefore, the first affected renewal dates will be those on the 31st July 2024.



How we are here to help

Our PRSA (Personal Retirement Savings Account), BOB (Buy-Out Bond) & ARF (Approved Retirement Fund) offerings continue to operate as normal, and can take across the assets from your SSAS, where you can then continue to invest. New contributions can also be made to a PRSA if established.



We have spent the past year investing in infrastructure to ensure that you and your advisor have the smoothest possible migration journey. We now have a fully trained and resourced Switching Team in place, we have added additional resources to our New Business Team, and we have developed software for our PRSA, BOB and ARF to minimise the steps in moving between our pension structures.



Moving Forward

Our Switching Team are ready to guide and assist you and your advisor at every step of this migration, so each SSAS transfer can be managed to suit you. We’d recommend that you speak to your financial advisor to plan the next steps for your SSAS transfer.



Please contact us at ...
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No advertisement but since I use them and we have a similar situation , Davy Select have a PRSA at .75% and plenty of tracker funds to invest in (Vanguard included).
 
Do an in specie transfer from your SSAS to a PRSA. If staying with ITC, they have a tiered structure for their PRSAs, contracts over €200,000 have an amc of 1%.
 
Savvy said:
Davy Select have a PRSA at .75% and plenty of tracker funds to invest in (Vanguard included).
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Sorry, does it not cost the client circa 0.22% for access to a Vanguard Global Index Fund on this platform , bringing the TER to 0.97% (+ a transcation cost?), or have I been misled?
 
GSheehy said:
Sorry, does it not cost the client circa 0.22% for access to a Vanguard Global Index Fund on this platform , bringing the TER to 0.97% (+ a transcation cost?), or have I been misled?
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That's true, 0.75% is the provider platform cost, fund/ETF costs are additional to this but the TER can range from 0.03 to 2% and more depending on the fund. But I felt that this is more obvious than buying in house own brand trackers which is what the OP refers to.
 
I think the time is up on those trackers and that you'll just find that the risk of buying into one now (with new money) is remote, in the context of the OPs post. I think the ILAC Indexed World Equity Fund (MSCI) is now the only one avaialble for new business. But, others may have more insight on that.
 
Steven Barrett said:
Do an in specie transfer from your SSAS to a PRSA. If staying with ITC, they have a tiered structure for their PRSAs, contracts over €200,000 have an amc of 1%.
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Hi Stephen - is that 1% AMC definitely correct? It looks like you can access an ITC/Conexim PRSA for 0.5% for when you invest €200,000+

Advisor charges need to be added to that and I'm not sure how the actual funds purchase and then ongoing annual charging works.

It mentions that 'on-platform' funds can be purchased for 0% commission - unclear if Vanguard (or an equivalent) are on-platform - do you happen to know?
 
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