Pollard Boxes Ltd is a well-known local company operating from specialised premises in Enderby, Leicestershire. The company has been around for many years and has grown organically because of the quality of its products and also by a number of acquisitions. Growth by acquisition can create unexpected consequences in the pensions field and Pole Arnold were originally asked to review and sort out the many legacy pension schemes that formed part of the various takeovers with the intention of streamlining the benefit provision for employees. This was successfully completed a few years ago and will now form the basis for the new auto-enrolment requirements that the Government has introduced.
A Small Self Administered Pension Scheme (SSAS) has been the preferred retirement planning vehicle for the Pollard family as owners and managers of the business. When, a few years ago the company wanted to move from its South Wigston premises to custom built premises in Enderby there was always an eye to the future and the SSAS became involved in purchasing land adjacent to the new premises which was let out as storage/parking facility for local businesses for a few years. In addition a loan from the pension scheme helped to finance the development cost of the new property. The eye to the future proved correct and the pension fund has since developed its land into new factory premises let out to Pollard Boxes Ltd to allow for its continued growth and development.
Brian Pollard is now semi-retired though he still plays an active part supporting Mark and Julie in running the business. Drawdown pension provides income to Brian and his wife Mary directly from the SSAS and the common fund nature of the SSAS allows the current contributions and rent to partly fund the pensions from a cash flow point of view whilst allowing the younger members to retain control of the assets. Although they think it is unlikely that a pension annuity will ever be purchased, the option to do so remains available.
The SSAS vehicle has worked very well for the family business in planning for retirement but at the same time allowing investment in the growth of Pollard Boxes Ltd for the next generation in an extremely tax efficient manner.