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Trustee Investment Plan

Single premium investment for trustees of UK registered Occupational Pension or Self-Invested Personal Pension (SIPP) schemes.

Product documents

View all Trustee Investment Plan (TIP) documents
View key documents

Tools & calculators

Direct access to the TIP Modeller & Fund Reporting Tool
View tools

Overview

About the Trustee Investment Plan

Our Trustee Investment Plan (TIP) is for Trustees of UK registered Occupational Pension Schemes and Self Invested Personal Pension Schemes (SIPPs). It allows Trustees to invest in our range of funds – to grow investments over the medium to long term.

Investments from SIPPs will be set up for a named individual – known as a “member designated” plan. Other UK registered Occupational Pension Schemes can also designate the plan to an individual member if they wish to do so. However, plans can only be member designated at the start of the plan. Clients can only access the With-Profits Fund if the plan is member designated.

For member designated plans:

  • You can only invest in the With-Profits Fund if the member is under age 85.

  • You cannot choose a PruFund Fund if the member is aged 98 or over.

  • You cannot choose a PruFund Protected Fund with a guarantee term that ends on or after the member’s 99th birthday.

Key elements

Eligibility

  • Trustees of UK registered Occupational Pension Schemes, including Small Self-Administered Schemes (SSAS) and deferred arrangements
  • Trustees of Self-Invested Personal Pension Schemes (SIPPs)

Contributions

  • Minimum initial investment: £20,000
  • Minimum additional investment: £10,000
  • Additional investments will be set up as a new TIP

Maximum investment is normally £1,000,000. We may accept higher value contributions on request. For plans set up from 7 November 2011, there is no set investment term. For plans set up before this date, Selected Investment Term (SIT) applies.

 

Withdrawals - Trustees can:

  • Cash in the plan at any time.
  • Take a partial withdrawal (providing the withdrawal exceeds £1,000 and £1,000 is left in the plan).
  • Take regular withdrawals from the plan; monthly, quarterly, six-monthly or annually (up to 100% of the original investment each year). If invested in the With-Profits Fund, the maximum limit is 7.5% per year of original investment and this limit can reduce if partial withdrawals are also taken.

Full and partial withdrawals from the With-Profits Fund may incur an MVR.

Product features

Features

  • A range of fund options to suit different needs and attitudes to risk that are not widely available. Our With-Profits Fund and PruFund Funds can provide a balance to higher risk or illiquid assets which may be held in the Scheme, together with growth potential.

  • As an alternative to holding large cash balances in a trustee’s bank account, the Trustee Investment Plan offers the potential for real growth which could help against the effects of inflation.
  • Allows trustees of SIPPs and Occupational Schemes outside of Prudential to invest in our With-Profits Fund and PruFund range of funds.
  • Guarantee options on our PruFund Protected Funds help provide added security, at an extra cost. The PruFund Protected Funds are currently unavailable to new investments.
  • Regular, partial and full withdrawals. Regular withdrawal facility can provide income without the need to sell or release funds from other assets held in the scheme which may be less accessible, such as property investments.
  • Income flows could help cover payments and costs, such as drawdown payments, loan repayments, and any ongoing costs and charges within the scheme.

  • A Fund Size Discount is applied to the Annual Management Charge depending on the size of the fund.

Risks

  • The value of your client’s investment could go down as well as up. They may not get back what they have put in.
  • Inflation will affect the value of the money your client gets back.
  • If the total of charges and costs are higher than the investment growth, your client’s plan will fall in value. Charges may also increase in future.
  • If money is withdrawn from the With-Profits Fund we may reduce the value by applying an MVR.

Tools & calculators

Trustee Investment Plan Modeller

The Trustee Investment Plan (TIP) Modeller shows how the Prudential TIP can be used as an investment for an existing Self Invested Personal Pension (SIPP) and Small Self-Administered Scheme (SSAS).

Prudential Fund Reporting Tool

Find out which funds we offer - together with fund factsheets, performance information and more.

Investment options

The Trustee Investment Plan (TIP) offers access to a broad range of funds, which includes Prudential’s Multi-Asset funds – With-Profits Fund and PruFund range of funds – which are  managed by the M&G Treasury & Investment Office (T&IO), experts in asset allocation and multi-asset fund management.

Fund choices can be changed at any time. The trustee can select to invest in a maximum of six funds under each TIP plan. Note each PruFund & SafeGuard fund counts as two funds - see the Key Features document for more.

For plans set up from 7 Nov 2011, there is flexibility to invest for as long as required.

The Trustee Investment Plan allows trustees of SIPPs and Occupational Schemes outside of Prudential to invest in our PruFund range of funds and With-Profits Fund.

These multi-asset funds are not widely available.

These funds:

  • offer smoothed returns that provide growth potential and which could help against the effects of inflation.

  • offer an alternative option for medium to long term (5 to 10 years or more) investments to a trustee bank account that may be attracting low rates of interest.

  • offer fund options that suit different attitudes to risk and objectives.

  • offer guarantee options that provide added security.

  • provide a balance to higher risk investments in the Scheme.

Find out more about the PruFund range of funds.

Find out more about the With-Profits fund.

Access additional internally and externally managed funds, which offer a range of assets to suit differing client needs.

Find out more about fund availability.

Find out more about the performance of the funds.

In an uncertain economic climate, clients may look for additional security for their investment. To address this, we offer guarantee options within our TIP.

The PruFund Protected Funds are currently unavailable to new investments.

We offer guarantees for the PruFund Protected Cautious Fund and PruFund Protected Growth Fund . At the end of the selected guarantee term the fund will be worth at least the amount your client invested (subject to charges, enhancements or withdrawals).

For investments in the With-Profits Fund, we offer a Market Value Reduction-free guarantee on any regular withdrawals or on death.

For plans set up before 7 November 2011, we guarantee not to apply an MVR when the plan is cashed in at the end of the Selected Investment Term.

Charges & costs

We will take a charge every year for managing the plan and investments. The amount charged will depend on the funds your client invests in.

  • PruFund Funds: the AMC is deducted as a percentage of the units every month. Note that if a client has only invested in a PruFund Fund for part of a month, we still take a full month's charge.

  • With-Profits Fund: the AMC depends on the Fund performance - in particular, the investment return and our expenses. We currently expect this charge to be about 1.26% a year based on the assumption that future investment returns from the Fund will be 5% per year.

Further information on how much we charge for each fund can be found in the TIP Fund Guide which you can share with clients.

Discounts are applied to the basic AMC based on the size of the fund (Fund Size Discount):

 

Fund Size AMC Discount
Less than £100,000 0.35%
£100,000 - £149,999
0.40%
£150,000 - £249,999
0.45%
£250,000 – £499,999
0.475%
£500,000 – £749,999
0.50%
£750,000 - £999,999
0.525%
£1m and over

0.55%

The discount to the AMC will apply to the whole of the investment, not just the portion above the threshold levels.

For more information on Fund Size Discounts see the Fast Facts document.

There are other costs which aren't covered by the Annual Management Charge. These can include, for example, maintenance costs for property investments and costs associated with investing in infrastructure, such as utilities, transport and renewable energy. These can vary over time.

Where these further costs are applicable, they’re paid for by the fund and will impact on the overall performance.  Further information on the charges and costs for each fund can be found in the Fund Guide.

The PruFund Protected Funds are currently unavailable to new investments.

Find out more about the charges for guarantees on our With-Profits Fund.

Market Value Reduction

For investments in the With-Profits Fund, an MVR may apply if the client withdraws funds, switches funds or if the plan is cashed in. However, we offer an MVR-free guarantee:

  • on any regular withdrawals

  • on death*

  • for plans taken out before 7 November 2011, when cashed in at the end of the Selected Investment Term

*Investments in the With-Profits Fund are only available if the TIP has been set up for a named individual - 'member designated'.

Adviser charges are broken down into:

  • Set-up Adviser Charges: We have limits which set out the maximum level of Adviser Charging which we will facilitate. For Set-up Adviser Charges this is 5% of the single premium or £30,000, whichever is lower.

  • Ongoing Adviser Charges: We have limits which set out the maximum level of Adviser Charging which we will facilitate. For ongoing Adviser Charges this is 1% of the fund value.

Adviser charges must be in accordance with HMRC rules and will be tested to ensure they do not exceed the relevant limit for the TIP.

Signatureless process

This process applies to the Trustee Investment Plan – Series A (TIP)

SIPP Providers and Trustees can have access to our 'signatureless' process for the following TIP requests:

  • New Business
  • Withdrawal of Units
  • Adviser Charge Alteration (changes to OAC% only)
  • Fund Switch
  • Monetary Withdrawal
  • Change to Regular Income
  • Cancellation

The use of a signatureless process removes the need for you to obtain a ‘wet’ signature from trustees. Nevertheless, if their internal process requires a signature then you should continue to follow this process.

This process will be reviewed regularly and may change in the future.

However, we'll only accept submissions of signatureless requests from the scheme trustee/administrator.

The table below sets out the process and any relevant further information for each type of application. Applications need not be signed unless the scheme’s internal processes require.

If you’ve completed a paper application, this along with any other requirements should also be emailed to us in the same way. 

Service Request PruAdviser Download Form Request Via Letterheaded Paper
New Business Application Yes No
Withdrawal of Units Yes Yes
Adviser Charge Alteration (changes to OAC% only) Yes Yes
Fund Switch Yes Yes
Monetary Withdrawal Yes Yes
Change to Regular Income No Yes
Cancellation Available on request Yes
Authorised Person for Submission of Signatureless Scheme Trustee/Administrator Scheme Trustee/Administrator
Submission

 

The email must clearly evidence that it is from the scheme trustee/administrator, for example it is from the company's email address and contains the company logo

Complete Form

Accompanying documentation

Then email via normal secure transfer or fris.team@prudential.co.uk

 

The email must clearly evidence that it is from the scheme trustee/administrator, for example it is from the company's email address and contains the company logo

Letterheaded Instruction

Accompanying documentation

Then email via normal secure transfer or fris.team@prudential.co.uk

Request an illustration

If you would like to request a TIP Illustration please contact us on 0808 234 0808 or email us at sales@prudential.co.uk. Alternatively, you can request this through your Account Manager.