Before processing a crystallisation request, you may wish to produce a review illustration for your client - here's how you do that: Creating an illustration

N.B. you cannot set up a regular crystallisation and complete an ad hoc crystallisation as part of the same application. If you need to do both, you should first submit the regular, followed by the ad hoc instruction.

Under current pension legislation, you are not legally permitted to crystallise your pension until you reach the age of 55. If you have an exceptional case, please contact us at servicecentre@soderbergpartners.com. We will then review this for you and advise the next steps. 

• First, locate your client in the system, either via the Clients tab in the top menu, or by using the Client Search Function
• Then go to the clients SIPP Account, click Account Actions and Crystallise

• At the top of the form you'll find a link to the Retirement Factsheet and you will need to ensure that your client has received this information
• You must confirm that advise has been given to the client about the crytallisation and enter the FCA number of the adviser providing the advice
• Confirm whether your client has received guidance from pension wise - this is for reporting purposes and does not affect the application
• You will then be asked questions regarding the clients pension details. Some of these questions will produce follow up questions or ask you to provide further information. 

• Please note, you'll be asked if the client has taken benefits from their pension pre April 2024, if they have you'll be asked if the client is applying for a transitional tax-free amount certificate. If yes, you can enter the transitional tax free amount and you'll be required to send a copy of the certificate to us via email.
• You are then directed to the Lump Sum Allowance section. Anything used with us will be recorded. You can add a record of LSA used with other schemes which will then be retained in the system and presented in this journey next time

• Please be aware that if a member has a live regular crystallisation series and their LSA changes due to a crystallisation in a pension elsewhere, you will need to set up a new regular crystallisation series and provide updated LSA figures
• You then scroll down to the Pension Protection section. If you select Yes, the system will generate further fields to confirm which protection the client has. If you select No, you will be diverted to the Crytallisation details. 

• You will then need to select No to crystallising the full amount, and tick Yes for setting up a regular contribution on the account. You will then need to choose if you would like the regular to be an UFPLS payment or a FAD payment. 

• You are then prompted to enter the amount the client would like to crystallise each month. You also need to select the payment date. Please note that you will need to set up any regular payments at least 6 working days before the regular is due to be paid out. You can then select the drawdown account the remaining crystallised funds will go to.
• N.B. the last payment month field is not mandatory and if you leave this blank, the regular crystallisation will continue indefinitely.

• If you select FAD, you will also be asked if the client requires a taxable withdrawal from the monthly crystallisation. You may notice that you can enter an amount that exceeds the amount of the monthly crystallised funds. This shortfall is made up by taking money out of any existing drawdown funds in that account. If you select no to this question however, the client will only receive their PCLS and the crystallised funds will remain in the drawdown account.

• If you selected an UFPLS payment, the tax free and taxable payment will arrive in the client's bank account on the selected payment date (or the prior working day if this lands on a bank holiday or weekend).

• You then click review, and submit. You will be given a declaration to accept and this will then set the regular crystallisation up for the client.

After the crystallisation request is completed, the client will receive a Retirement Options Pack document, and a Pension Choices document in the Client Portal. 

Please note that uninvested cash will be used to fund a crystallisation, then any shortfall will be funded by an automated proportional sell down of assets. 

Timescales

The payment transaction and any required sale orders are created 6 working days prior to the chosen payment date, so the deadline for keying a new regular crystallisation application, or cancelling an existing, is 7 working days prior to the payment date.

FAD Timescale: 

If the client has sufficient funds in cash, the PCLS is paid immediately via BACS. If there are linked sale orders, the PCLS payment is made via BACS when the order is executed (which is usually 1-2 days later). The payment is sent to the client's bank account, the crystallised funds are moved into the chosen drawdown account, and a RBCE statement is made available in the Client Portal.

The client will then receive their chosen income (if requested) in to their bank account ON the chosen payment date, or the previous working day if this lands on a weekend or bank holiday.

Please note this means the client will receive two payments, a couple of days apart.

Once the income payment has been made, a payslip will be made available to the client in the Client Portal. 

UFPLS Timescale:

The client will receive one payment made up of PCLS and taxable income in to their bank account on their chosen payment date. 

A RBCE statement and payslip will be made available within the client portal.