How the scheme works
A Contracted-in Money Purchase (CIMP) scheme is a defined contribution arrangement, under which you and your employer make tax efficient payments into your personal fund. These contributions are used to buy units in the investment fund that you choose. The size of your personal fund at retirement will depend on how much has been contributed, the length of time over which your personal fund has been invested, how your selected fund or funds have performed and the effect of charges. We select the funds you can choose from to invest in. As this is a contracted-in scheme, it cannot accept contracted-out contributions from the HMRC in respect of the State Second Pension. Any State benefits will be provided separately.
On joining a CIMP scheme, if you have a pension from a previous employment (employed or self-employed), then you may be able to transfer benefits from that registered pension scheme to the CIMP. As the scheme does not hold a contracting out certificate, the trustees will be unable to accept any transfers that include contracting-out benefits.
Please note that the trustees are unable to accept a transfer in from a final salary scheme, unless you have received financial advice.
At retirement you can use your personal fund to provide income. You will usually be able to take a part of the fund, subject to HMRC limits, as a tax free lump sum; however, this will reduce the amount available to provide income. The pension income your fund can provide will depend on annuity rates at the time you take your benefits.
Further information
For specific information relating to your company scheme please refer to your scheme booklet or contact your employer. If you are already a member of your employers’ scheme and have a user name and password you can access your pension online using the following link:
If you need more information regarding the suitability or need advice before joining the scheme, Winterthur Life suggests that you seek advice from a Financial Adviser; you may be charged for this service. If you do not currently have a Financial Adviser you can contact IFA Promotions Ltd on 0800 085 3250 or via their website (www.unbiased.co.uk), who will be able to put you in touch with a Financial Adviser in your area.
