SIPP cash transfer

Before you start: Load profile

Load total client view from the summary page. If this is a new client please create a new client profile. If your client does not hold a Wrap SIPP, please select the 'new product' button from your client’s summary page.

For clients who already hold a Wrap SIPP select the three dots next to the Wrap SIPP and select “single payment”. This will open the Wrap SIPP wizard.

Step 1: Pension Transfers to Wrap

Defined Contribution Pensions

For Defined Contribution Pensions to be transferred to Wrap SIPP:

1. Select the existing pension to be transferred in from the options of SIPP, SSAS or other. 
2. Select the Transfer Type – Cash or in-specie. This process discusses ‘Cash’ transfers so if you have selected ‘in-specie’ please go to the help page on SIPP in-specie transfers.
3. Add the Plan Number, provider and estimated transfer value for the existing Pension.
4. Choose whether the transfer is Pre or Post Pension (in drawdown or not).
• If there are Post Pension amounts add in the Drawdown type – Flexible or Capped. If Capped add the review date, current maximum permitted income and the income paid in the current income year.
5. Add in if there is a Pension Sharing Order on the transfer.
• If there is, the wizard will ask you if the Pension was 'in payment'. If it was 'in payment', you will be alerted that no further Tax-Free Lump Sum (TFLS) can be paid.

Defined Benefit Pensions

For Defined Benefit Pensions to be transferred to Wrap SIPP:

1. If there is and you wish to request drawdown on the completion of the transfer, please add this into the Defined Contribution Pension section as Pension Type: Other. 
2. If no drawdown is required on receipt of the Defined Benefit Pension, then add the Provider / Employer / Administrator, Scheme Reference and the Estimated Transfer Value.
3. Please note we require an additional form to be completed for Defined Benefit Transfers (PDF).

Step 2: Tax Wrapper Allocation

This step will allow you to see the transferred amount pulling through as an “Existing Tax Wrapper to be Transferred” along with giving the option of adding single or regular payments on the same wizard.

Step 3: Adviser Charging

1. You can add a percentage or monetary amount for Initial Adviser Charge, and you can nominate whether this will be paid from SIPP Cash or Wrap Cash (Cash Account). 
2. You can add percentage or monetary amount for annual Ongoing Adviser Charge and nominate whether this will be paid from SIPP Cash or Wrap Cash (Cash Account). This will be paid from the anniversary of the plan start date based on the chosen frequency of payment. 
3. For Initial and Ongoing Adviser Charges, the default is to pay the charges from SIPP cash. There is a tick box to indicate that these are to be paid from Wrap Cash (Cash Account).

Step 4: Investment Selection

Here the funds are added to invest the money when it arrives in cash from the ceding provider. 

• For existing accounts this will populate from Target Allocation for the client, if you wish to use new funds, you can click Clear Values at the bottom of each column. 
• You can add the funds in bulk using the Fund code search tool. (Multiple funds can be added at the same time and separated by a comma, E.g. Code1, Code2, Code3). 
• Or you can choose a model portfolio or add fund codes manually.  
• The fund allocations must total 100%.

 

Step 5: Wrapper Details

1. Here you add some specific points about the new pension, starting 'with the Retirement date, if the client is eligible' to take drawdown. This is not the date that the client moves from Pre to Post pension, but a date in the future that the client will move to purchase an annuity.
• To be able to run quotes on the SIPP this will need to be at least a year in the future, usually age 75 is used. 
2. Here you can also add Concurrency information and it is essential to say 'Yes' to drawdown if the client is already in drawdown or wants to move into drawdown upon receipt of the transfer.  
3. Finally, the Source of Wealth and the client’s Employment Status can be selected from the dropdown menu. 

Step 6: SIPP Drawdown Details

1. In this step, if you said yes to drawdown and the client is eligible, you can confirm if the client wants to take Full, Phased or Tailored Drawdown on receipt of the transfer. 
• Please see the notes on the page and choose the options appropriate to the client's requirements. 
2. You will find options to take Drawdown Price Lock and you can select if the client wants to take income. This page has a section on Drawdown Price Lock and Wrap SIPP drawdown in general. 

The next stage is the ‘Adviser Declaration' before moving to the final step.

Step 7: Validate and Execute

Here you can run quotes and documents before submitting the wizard.

Once your client has signed the documents, please upload the documents to the client's document library, and e-mail either:

• wrap_money_in@abrdn.com for new clients
• transfers_in@abrdn.com for existing clients

Some providers require the original signed documents so best practice is to also post the signed paperwork to us at the following address to prevent any delays: 

abrdn Client Servicing 
Sunderland 
SR43 4EE

Need more information?

You can view our quick guide to SIPP cash transfers (PDF).