How a SSAS works
Understanding the SSAS structure
A Small Self-Administered Scheme (SSAS) is an occupational pension scheme set up by an employer to provide retirement benefits for its members. It operates under trust, with the scheme's assets held separately for the benefit of its members.
A SSAS can have up to 11 members, typically comprising company directors, business owners and key employees of the sponsoring business. This makes it a relatively small occupational pension arrangement in which members can take an active role in how the scheme operates.
Establishing your SSAS
A SSAS is established under trust and must apply for registration with HM Revenue & Customs (HMRC). A bank account is opened in the scheme's name to receive pension contributions, transfers and investment proceeds, and to make payments and meet scheme expenses.
The trust deed and rules provide the framework for the scheme, including the powers and responsibilities of its trustees.
Members and trustees
Members of a SSAS are normally appointed as trustees, giving them an active role in the management of their pension scheme. An independent professional trustee can provide specialist support and oversight alongside member-trustees.
A key feature of the traditional SSAS structure is that member-trustees act together, with decisions generally requiring their unanimous agreement. The precise arrangements depend on the scheme's trust deed and rules and the applicable legal requirements.
Trustees must understand their responsibilities and ensure that decisions are made and recorded appropriately.
Ongoing administration and compliance
A SSAS has ongoing administrative and reporting responsibilities. These can include maintaining scheme records, processing transactions, monitoring compliance requirements and meeting relevant HMRC obligations.
The scheme administrator has specific responsibilities under pension legislation, including those relating to the scheme's registration and tax compliance.
How Highstone can help
Highstone provides specialist independent trustee and scheme administration services. We work alongside members and other trustees to support the proper operation of their scheme, explain administrative requirements and help members understand and fulfil their responsibilities.