Trustee Investment Plan

Our Trustee Investment Plan (TIP) is a single premium investment for Trustees of UK registered pensions schemes, including Occupational Pension Schemes and Self-Invested Personal Pensions (SIPPs).

The total maximum regular withdrawal that can be taken is 7.5% per year of the original investment.

It offers access to a range of funds including our With-Profits Fund and PruFund range of Funds. Regular and partial withdrawals can be taken from the Plan.

Prudential's TIP has no set investment term, giving you the flexibility to invest for as long as you require. Plans set up before 7 November 2011 will have a Selected Investment Term (SIT).

Providing income

A TIP can provide income to help with:

  • Scheme pension or income drawdown payments without having to realise other assets held in the scheme.
  • Meeting loan repayments for assets held in the scheme.
  • Covering any Product and Adviser Charges within the scheme.

Regular withdrawals can start from the first anniversary of the plan. The total maximum regular withdrawal that can be taken is 7.5% per year of the original investment. Withdrawals can be taken monthly, quarterly, six-monthly or annually.

Taking a partial withdrawal will reduce the amount of regular withdrawals you can take. No charge applies on regular withdrawals or on death where the plan is set up for a named individual ('member designated').

We may apply a Market Value Reduction (MVR) to any investment in the With-Profits Fund if you make a partial withdrawal, switch money out or cash in the plan. MVRs are our way of protecting the interests of all our customers and ensuring that every investor gets a return based on the earnings of the With-Profits Fund over the period their payments have been invested. This will have the affect of reducing the value of your investment.

However, we offer an MVR-free guarantee:

  • on any regular withdrawals; or
  • on death, where the TIP is set up for a named individual ('member designated')

Investment choices

The Prudential Assurance Company Limited (PAC) With-Profits Fund is one of the largest with-profits funds in the UK. The Fund consists mainly of with-profits business, but it also contains a significant amount of non-profits business. Further details can be found in our Principles and Practices of Financial Management (PPFM). The total level of assets backing the With-Profits business in the Fund was £91.0bn at 31 December 2016.

The PruFund range of Funds invest in Prudential's With-Profits Funds. Our PruFund Funds are designed to spread risk, by investing in many different assets. The funds also have a unique smoothing mechanism, designed to protect your investment from some of the daily ups and downs associated with direct investment.

Guarantee options

We currently offer a 10 year guarantee, which is available on both our PruFund Protected Cautious and PruFund Protected Growth funds. If you select a guarantee, this will apply at the 10th anniversary and the charge will be payable for the 10 years.

Investing in a Protected PruFund Fund ensures that at the end of the guarantee term, the fund will be worth at least the amount you invested, adjusted for any applicable charges, ongoing commission costs, enhancements or withdrawals, this is known as the Guaranteed Minimum Fund. At the end of the guarantee term, we switch your investment to the fund of your choice, or to the corresponding PruFund Fund.

For full details, please refer to the Key Features document.

We also offer four Risk Managed PruFunds which can spread your money over a range of different assets; they use our unique PruFund smoothing process and give you and your adviser a choice of funds that target different levels of potential return, and therefore risk, for your investment.

For the full range of funds available, please refer to the Fund guide.

PruFund Pension Funds - Expected Growth Rates

Our dedicated page on the PruFund range of funds gives you information including how our smoothing process works, access to both historic and current Expected Growth Rates (EGRs) and details of any historic Unit Price Adjustments (UPA).

Past performance is not a reliable indicator of future performance, the value of the plan may go down as well as up and there may be times when you do not get back the original amount of your investment.

What you might get back

The overall return achieved on any plan is affected by the amount of the investment, fund performance, the period over which the plan has been invested, any income taken where relevant, and the charges applicable to the plan. Details are provided in the relevant Key Features document. It is important to understand that the value of your investment may go down as well as up and is not guaranteed. You may get back less than you have paid in.

The plan is a long-term investment and if any money is withdrawn (except for regular income) an exit charge may apply.

You can request a policy valuation at any time by calling us on 0800 000 000.

Trustee Investment Plan literature