Employers who wish to provide maximum benefits to key staff may establish a Defined Benefit Small Self-Administered Scheme (DB SSAS). A DB SSAS will provide all the flexibility of a traditional money purchase SSAS but benefits are accumulated in the format of a Scheme Pension from a Normal Retirement Age.
A maximum annual pension may be awarded in each tax year and the scheme actuary will calculate the contributions required to meet the benefits promised. A DB SSAS would be funded on a cautious basis and typically, the contributions required to meet the maximum pension award would normally be much higher than the Annual Allowance. A DB SSAS could therefore be used to pay significantly higher pension contributions than that which would apply in a money purchase scheme and accelerate total pension accumulation.
Nigel Sloam & Co provides a fully flexible DB SSAS and actuarial services, including advice on contributions and funding requirements.