Key Features

The Financial Conduct Authority is the independent financial services regulator. It requires us, Quai Investment Services Limited, to give you this important information to help you to decide whether this product is right for you. You should read this document carefully so that you understand what you are buying and then keep it safe for future reference.

This Key Features document shows you the main points about the Pension App Pension Scheme.

Please read it carefully and keep it with Pension App Pension Scheme documents.

This product is offered by Pension App. Quai Investment Services Limited is the Product Provider for Pension App Pension Scheme.

This document provides an overview of all the things you need to know to get started, and the facts you need to determine whether this product is right for you.

If you are unsure whether this product, its features, investment options and charges are right for you then you should take appropriate financial advice. Neither Quai Investment Services Limited nor Pension App is authorised to give your financial or investment advice.

This Key Features document is issued by Quai Investment Services Limited who is the product provider of the Pension App Pension Scheme. Quai Investment Services Limited is registered in England with number 09919243. Registered office: 16 Tesla Court, Innovation Way, Peterborough, PE2 6FL. Quai Investment Services Limited is authorised and regulated by the Financial Conduct Authority – Firm Reference Number 922590. The Trustee of the Personal Pension is Quai Trustees Limited.

Pension App Ltd (Firm Reference Number 986413) is an appointed representative of Direct Wealth Management Ltd (Firm Reference Number 765903), which is authorised and regulated by the Financial Conduct Authority. Registered Office for Pension App Ltd is Riverside, Mountbatten Way, Congleton, Cheshire, England, CW12 1DY. Registered in England with number 14373601.

Its Aims

The Personal Pension is designed to let you;

Save for retirement in a tax-efficient and flexible way.
Build up a pension fund to give you an income and a tax-free cash sum.
Make transfers from other suitable pension arrangements.
Specify to whom you would like benefits to go to on your death, although the decision rests with the Scheme Administrator.

Your Commitment

Once you have commenced your Pension App Pension Scheme, your commitments include:

To pay money in and / or transfer benefits from other suitable pension arrangements.
Keeping those funds within a registered pension scheme until you take benefits, the earliest age at which is 55.
To adhere to the Terms & Conditions of the Pension App Pension Scheme.
To tell Pension App if you stop being eligible for a pension.
Paying the fees in accordance with the Pension App Fee Guide and the Pension App Pension Scheme Terms & Conditions. You must ensure that you understand the features, benefits and risks of the Pension App Pension Scheme; so that you can be sure it will meet your needs and expectations.

Risks

Below are outlined risks associated with saving for retirement through a pension plan. Some of the risks below refer to the investment performance of the funds in your Pension App Pension Scheme. Remember that you are responsible for the investment decisions. In many instances, the funds you invest in will also have key investor information documents that outline the specific risks applicable to that investment and you should read these before making a decision to invest.

A Pension is a long term investment.

The favourable tax treatment for pension savings and the age at which you can first start to take benefits could change in the future.

Investment performance or charges may be better or worse than expected, which could affect the potential size of your pension fund and therefore the benefits you receive. The charges or fees you pay in relation to this pension plan may be higher than expected, which could affect the potential size of your pension fund and therefore the benefits you receive.

The fund value may fluctuate and can go down.

Other things that can affect the potential size of your pension fund and the benefits you receive include the amount you pay or transfer in to the pension plan, which could be lower than you anticipated, or if you take benefits earlier than you were aiming for.

Investment conditions can also affect your pension income - if you convert your pension fund to an annuity (i.e., purchase a policy from an insurance company that provides you with a regular income) then prevailing interest rates at the time of conversion will affect the amount of annuity you will receive. Generally speaking, lower interest rates mean lower annuity amounts, although annuity amounts are also affected by other factors such as life expectancy and your state of health.

Your eventual income may depend on the size of the fund at retirement, future interest and tax legislation.

Alternatively, if you decide to draw your pension income directly from your pension fund then investment returns may not sustain your income requirement.

There may be a delay in receiving benefits if some of your investments cannot be sold quickly.

You have a right to cancel your pension plan and each transfer in to your pension plan within the first 30 days. Where you have invested during this period and you exercise your right to cancel then the amount returned will be the amount realised less any costs associated with the investment and subsequent disinvestment.

Whilst the Pension App Pension Scheme can accept transfers from other pension schemes, not all transfers may be suitable. For all transfers you are responsible, with the help of a financial adviser, if necessary, for ensuring that the transfer is suitable for you.

If, after considering these risks, you have any doubt about the suitability of the Pension App Pension Scheme, or if you need advice, then you should seek advice from a qualified financial adviser.

Questions and Answers

What is the Pension App Pension Scheme?

The Pension App Pension Scheme is a pension plan that allows you to save for retirement in a tax-efficient and flexible way.

The benefits you can receive are subject to UK pension’s legislation. This includes rules about limits on contributions that can qualify for tax relief, the earliest age you can take benefits and limits on what those benefits can be without incurring tax penalties, including the account that can be taken as tax-free cash.

Is the Pension App Pension Scheme a stakeholder pension?

No, Stakeholder pensions are a specific form of pension that must meet Government minimum standards relating to contributions, charges and provision of a default investment fund. Stakeholder pensions are generally available and it is for you to consider, with the assistance of a financial adviser, if required, whether one may meet your needs as well as the pension plan on offer.

What are the Trust Deed and Rules?

The Trust Deed and Rules are the legal documents that have established the Scheme under which the Pension App Pension Scheme operates. References to “Pension Provider” means Quai Investment Services Limited who are the FCA authorised and regulated Operator of the Pension App Pension Scheme and were appointed by the establishing Trust Deed.

The Operator may delegate the administration of the Scheme and in the case of the Pension App Pension Scheme, the administration services have been outsourced to Quai Administration Services Limited. Quai Investment Services Limited has appointed FIS Platform Securities to provide the dealing and custody services.

What will my pension be worth?

The final value of your pension plan will depend on how much is paid in, how long you invest for, the charges paid and how well the investments perform.

The Product Provider will place an electronic copy of your annual statement detailing the investments and transactions of your pension plan in the relevant area of the Pension App. You can log into your Pension App Pension Scheme via the Pension App secure mobile App to obtain a current value at any time.

How much pension income will I get?

Once you have attained minimum pension age, to draw as much or as little of your pension fund as income you like, when you like, along with offering different benefit options. How much pension income you will get therefore depends on your choices and many variable factors such as income tax, the value of your pension plan and investment performance.

What are the charges?

All of the charges applicable to the Pension App Pension Scheme are detailed in the Pension App Fee Guide available via the Pension App. You should read those as part of this Key Features Document and the Pension App Pension Scheme Terms & Conditions.

Paying in to my Personal Pension?
What are my payments options?

Transfers in from other pension plans.

You can transfer pension benefits from other suitable pension arrangements. There is no minimum or maximum amount.

Transfers from defined benefit pension schemes and schemes that provide safeguarded benefits are not accepted.

Please note that if you are transferring benefits from another pension scheme that has tax free cash protection this protection maybe lost on transfer.

If you are in any doubt about the benefit of transferring, you should seek the assistance of a qualified financial adviser.

What can I invest in?

When your pensions are transferred into the Pension App Pension Scheme, the transfer amount will automatically be invested in the BlackRock Consensus 70 Fund.

All investments offered via the Pension App will be subject to HMRC permitted investment regulations.

How do I decide what to invest in?

When you apply for the Pension App Pension Scheme through the Pension App your investment will be in the BlackRock Consensus 70 Fund.

At that stage you will have access to the fund manager Key Investor Information Documents (KIIDs) about the BlackRock Consensus 70 Fund.

We cannot advise and nor should any information provided about the plans be considered to be advice. If you are unsure as to the suitability of the plan for you, then we recommend you seek advice from a regulated financial adviser.

How are my investments taxed?

Growth in the value of your Pension App Pension Scheme is free from UK Capital Gains Tax and UK Income Tax. Any dividends received will not count towards your annual Dividend Allowance and any interest received will not count towards your Personal Savings Allowance.

Limits
Is there a limit on benefits I can take from my pension plan?

The maximum you can take from all your pension arrangements without incurring an additional tax charge is called the Lifetime Allowance (LTA) as set each year by the Government. If you exceed the LTA and any LTA protections you may have, you will be subject to the Lifetime Allowance charge. If the excess is taken as pension income the charge is 25% and if taken as a lump sum it will be 55% of the amount above the available Lifetime Allowance. The charge will be deducted from your fund and paid to HMRC when paying your benefits.

The Lifetime Allowance in now increasing each tax year in line with inflation. However, in the past there have been a series of reductions. The Government has made it possible for individuals potentially affected by the reductions to apply for various types of protection from the Lifetime Allowance charge.

You can still apply for Fixed and Individual Protection 2016 provided that you have not had contributions paid to any pension schemes from 6th April 2016 and you do not already have Enhanced or Primary Protection. This will generally only be of interest to those who anticipate that the value of their pension benefits at the time they take them will exceed the standard Lifetime Allowance prior to it having increased to £1.25m.

Every time you take benefits from a pension plan, some of your LTA is used up. Checks against the LTA are carried out at various points, including:

Whenever you use part of a pension fund to:
- take a tax-free cash sum.
- create a drawdown fund.
- purchase a lifetime annuity.
- In the event of your death before age 75.
- At age 75 (if you still have funds in the pension plan).

At each of the above stages, an allowance is made for any tests that have already been carried out.

Lifetime Allowance charges apply to any further benefits taken once all the LTA is used.

When can I take benefits?

You may take income from your pension plan from age 55 (however this is rising to age 57 from 6 April 2028). You may also take benefits earlier if you suffer serious ill health or an illness or an accident which leaves you permanently unable to carry out your current occupation and you cease that occupation.

If you are 50 or over the Government provides a free and impartial service to help you understand what your choices are and how they work. This can be accessed online, over the telephone or face to face - see https://www.moneyhelper.org.uk.

It is strongly recommended that prior to accessing your pension benefits you seek advice from a suitably qualified financial adviser or obtain guidance from Money Helper.

On death, different tax treatments apply depending on whether you die before or after 75 - please see the section ‘Death benefits from your pension plan’ below.

Taking benefits from your pension.

The type of benefits you can typically take from a Pension are summarised below;

Option	Taking Pension Benefits
Pension Commencement Lump Sum (tax free cash sum)	Up to 25% of your fund can normally be taken as a tax-free lump sum when combined with designating funds to flexi-access drawdown or purchase of an annuity. Note: receiving the Pension Commencement Lump Sum does not trigger the Money Purchase Annual Allowance.
Use your fund to buy a lifetime or five-year pension income, often referred to as an annuity	An annuity can be purchased, the amount of which will be determined by the value of your pension fund and annuity rates available in the annuity purchase. Generally speaking, annuity rates depend on interest rates, life expectancy and the type of pension benefits you are buying (e.g., an increasing or level pension and whether any guarantees or dependants’ benefits are included). If you are in poor health or have a lifestyle that could adversely affect your life expectancy (e.g., heavy smoker), then you may get an enhanced annuity rate. Note: income received via an annuity does not trigger the Money Purchase Annual Allowance.
Draw a pension income directly from your pension fund	Flexi-access drawdown - You may designate some or all of your fund into flexi-access drawdown. The fund remains invested and you can draw as much or as little income from the drawdown fund as you wish, when you wish (subject to the Terms and Conditions of the pension plan). The income you draw from the fund will be subject to income tax at your marginal rate. Note: The Money Purchase Annual Allowance is triggered when you first drawdown an income but there is no obligation to draw an income. Uncrystallised Funds Pension Lump Sum – You may use some or all of your fund to pay you this type of lump sum. 25% of the lump sum is tax free, the remainder will be subject to income tax at your marginal rate. Note: taking this lump sum will trigger the Money Purchase Annual Allowance.
A combination of the above to meet your individual requirements	You could take a combination of the benefits described above and you do not have to take benefits all in one go. An annuity can be purchased from funds in drawdown as well as from uncrystallised funds. The way in which you take benefits is flexible and can be structured to meet your individual requirements.

Risk Warning - The information contained in this document is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.

Death benefits from your Pension App Pension plan

What if I die?

The paragraphs below summarise the benefits payable (assuming an annuity has not been purchased).

What benefits can be provided?

All of the Pension App Pension Scheme is available to provide your beneficiaries with a lump sum payment or an annuity.

Who can receive a lump sum payment?

Most people will qualify as an eligible beneficiary for lump sum death benefits under the Scheme Rules. The Scheme Administrator will use its discretion to choose who to make the payments to having made reasonable enquiries to identify the eligible beneficiaries. It is highly recommended that you complete and keep updated an “Expression of Wish” of who you would like your beneficiaries to be and this expression of wish is not binding, but will be taken into consideration.

How are death benefits claimed?

To claim death benefits, the person dealing with your affairs should contact Pension App . They will confirm the information needed to pay the benefits as quickly as possible.

Are death benefits taxable?

Death before age 75: Benefit payments are not subject to income tax provided the lump sum is paid or annuity is set up within two years from the date of notification of death to the Scheme Administrator. If benefits exceed the Lifetime Allowance, then the recipients of the death benefits will be personally liable to pay the Lifetime Allowance charge to HMRC.
Death after age 75: Benefit payments are subject to income tax at the recipient’s marginal rate.
Inheritance tax: This is not normally payable although it may arise in the event that payments are made to your estate.

Is my pension taxable?

Pensions do not pay UK taxes on income or capital gains. However, tax cannot be reclaimed on UK and some overseas dividends.

Can I transfer my Pension App Pension Scheme to another pension plan?

You can transfer the value of your Pension App Pension Scheme to another UK registered pension scheme at any time. You should be aware that transfers to an overseas pension scheme may be subject to a 25% tax charge. Further information is available if required.

The transfer can be in the form of a cash payment, in which case you will have to sell all of the investments held under your Pension App Pension Scheme before the transfer is completed, or you may be able to transfer the investments (known as an “in-specie transfer”).

Can I cancel my Personal Pension?

You have a legal right to cancel your Pension App Pension Scheme if you change your mind.

The cancellation form is in Schedule 1 of this Key Features Document and you have the right to exercise your cancellation rights on each transfer that you request. You have a 30 day cancellation period from the date we receive your transfer request.

If you decide to cancel a transfer in to your Pension App Pension Scheme from another pension scheme, the transferring scheme may not agree to accept back your transfer value, or may only accept it on revised terms which are not acceptable to you, in which case you will be responsible for finding an alternative scheme to transfer the funds to.

In the event of cancellation, the net realisable value of any assets purchased and subsequently disinvested will form the basis of the amount returned. This means that having taken into account any fees or charges paid in relation to the investment and any price movements (particularly downwards), you may get back less than you originally invested.

What are the Charges?

Charges are explained in the Pension App Fee Guide available via the Pension App.

Can I obtain up-to date valuations?

You can obtain a valuation at any time by accessing your account via the Pension App.

How is Banking & Administration carried out?

When you apply for your pension, any money paid in to or out of your pension will go via the scheme bank account, which is a pooled bank account designated as a trust account, chosen by Quai Investment Services Limited.

The Pension App Pension Scheme is provided by Quai Investment Services Limited who is the Operator and HMRC registered Scheme Administrator for the Pension App Pension under which the Pension App Pension Scheme is established. It is responsible for ensuring the Pension App Pension Scheme is administered in accordance with the Trust Deed and Rules of the scheme, these being the legal document that determines the operation of the Scheme, which are available on request.

Quai Trustees Limited is appointed as Scheme Trustee under the Trust Deed and Rules.

Quai Investment Services Limited has appointed Quai Administration Services Limited to undertake the day-to-day administration of the scheme. Pension App will act as your agent and correspond with us on your behalf in relation to your account.

Are there any compensation arrangements covering my Personal Pension?

The Financial Services Compensation Scheme (FSCS) may provide protection if the Scheme Administrator cannot meet claims made against it or if investments or money cannot be returned.

If you are eligible, the maximum level of compensation for claims against firms declared in default on or after 1st April 2019 is £85,000 per person per firm. Further information about compensation arrangements is available from the FSCS website at www.fscs.org.uk.

Pensions are regulated contracts in their own right and hence are covered by the FSCS. Investments with regulated investment providers or insurance companies will be covered separately under the FSCS.

Those companies will provide information about the levels of cover provided.

Your status under the FSCS does not affect any statutory right you may have to compensation.
Some, but not all, investments held by your pension fund may also be similarly covered by compensation schemes. It is your responsibility to establish where this is and is not the case.

How do I Complain?

If you ever need to complain then in the first instance please contact Pension App at [email protected] or send a letter to:

Pension App
Riverside
Mountbatten Way
Congleton
Cheshire, CW12 1DY

Or;

Quai Investment Services Limited
16 Tesla Court
Innovation Way
Peterborough, PE2 6FL

We will immediately carry out an investigation of your complaint and will provide a written response.

If we are unable to resolve your complaint to your satisfaction, and you are an eligible complainant as defined by the Financial Conduct Authority, you will have recourse to the Financial Ombudsman Service.

If it is regarding the administration of your pension to:

The Pensions Ombudsman
10 South Colonnade
Canary Wharf
London
E14 4PU
Tel No: 0800 917 4487
Email: [email protected]
Website: www.pensions-ombudsman.org.uk

For all other complaints to:

Financial Ombudsman Service
Exchange Tower
London, E14 9SR
Tel No: 0800 023 4567
Email: [email protected]
Website: www.financial-ombudsman.org.uk

Can I get an illustration of benefits?

At the start of your pension plan, an illustration giving details of the potential benefits and costs will be supplied or on request prior to your plan commencing.

Example Illustrations

The following are general examples to show the effect charges, time and performance could have on the returns you could receive. In reality, your circumstances may differ, so you could achieve more or less than the amounts shown. Here’s what you might get back from your SIPP investment.

Years to Retirement		Single/Transfer
Years to Retirement		£20,000	£35,000	£50,000
40	Value	£47,400	£83,000	£118,000
40	Income	£1,990	£3,480	£4,970
35	Value	£42,500	£74,500	£106,000
35	Income	£1,800	£3,150	£4,500
30	Value	£38,200	£66,900	£95,500
30	Income	£1,630	£2,860	£4,080
25	Value	£34,300	£60,000	£85,800
25	Income	£1,480	£2,590	£3,700
20	Value	£30,800	£53,900	£77,000
20	Income	£1,340	£2,350	£3,360
15	Value	£27,600	£48,400	£69,100
15	Income	£1,220	£2,130	£3,050
10	Value	£24,800	£43,400	£62,000
10	Income	£1,100	£1,930	£2,770
5	Value	£22,200	£39,000	£55,700
5	Income	£1,000	£1,750	£2,500

The above table shows what the value of your SIPP could be, and the annual income it could provide using a range of possible contributions and periods to retirement. These figures account for the effects of inflation, so are in ‘real terms’. The figures are based on the following assumptions;

2.9% annual growth
An inflation rate of 2.0%
Retirement at age 65
Income is the annual amount that would be payable from a single life, level annuity paid monthly in advance with no guarantee and no tax-free cash

The actual rates of return and charges incurred will depend on the fund(s) in which you are invested, the value of your fund(s) and the performance of your investments. As such, returns may differ from those shown above.

The effect of charges on your SIPP

The table below shows the effect of charges on your SIPP, assuming a one-off initial contribution of £20,000.

Years to Retirement	Total Paid in to Date	Before Charges are Taken	After all charges are taken
1	£20,000	£20,500	£20,400
3	£20,000	£21,700	£21,300
5	£20,000	£23,000	£22,200
20	£20,000	£35,400	£30,800

Important Notes

The information in this key feature document is provided based on our understanding of current law, practice and taxation which may be subject to change.

Full details of the legally binding contract between you and Quai Investment Services Limited are included in our “Terms and Conditions” which you should have been provided with and which is available upon request.

The law of England and Wales will apply in all legal disputes.