Maximum income limit under unsecured income
The income limit is calculated by applying a rate from the Government Actuary’s Department (GAD) table to the residual crystallised fund. The rate varies depending on the 15 year UK gilt yield and the investor’s age and sex. The gilt yields may change from month to month and so the rate used in a pre-UI designation illustration may not be the same as that applying at the actual commencement date. The maximum income limit is 120% of GAD and is re-calculated every five years from the commencement date. It is also immediately recalculated on further designation, or for the following year for partial annuity purchases.

There is no minimum income limit for unsecured income.

Payment of income
Income payments are paid on the last working day of each month, either monthly, quarterly, half-yearly or yearly, paid in advance or arrears. A request for changing the frequency or amount of payments can be made in writing, with the cut off point being ten working days before the end of the month for payments to be made on the last working day of the next month. If an initial designation occurs after the cut off point for a monthly income payment at the end of the month, we will make a double payment in the following month. If less than the maximum is paid in one pension year, the balance cannot be taken in a later year.

Bank accounts
All income must be paid from the investor’s SIPP Bank of Scotland account. Insufficient funds in this account may result in the suspension of income payments.

Where funds are held by third parties, we will, wherever possible, establish regular fund transfers to meet the income requirements. Income payments can only be made to a personal account in the investor’s name.