Welcome to the SSE UK Share Incentive Plan (SIP) micro site!
Hello, thanks for logging on! Whether you are new to the SIP or are already participating, here you’ll find lots of useful information, so make sure you explore the whole site.
What is SIP?
SIP is a facility which lets you build up a holding of SSE plc shares.
How does it work?
- You decide how much of your gross salary you want to use for the purchase of shares (minimum £10 and maximum £125 per month, or if you’re weekly paid, minimum £2.25 and maximum £28.75 per week). Shares you purchase are called ‘Partnership Shares’.
- You sign up to the Partnership Agreement.
- Your shares are held in trust.
And the incentive?
- The Company will match each share you buy with two shares -
BUY ONE, GET TWO FREE
up to a maximum of six shares from the Company each month. Shares the Company buys for you are called ‘Matching Shares’.
- Shares are purchased with your gross salary so you pay less income tax and National Insurance on your earnings.
- You’ll not pay dealing charges as you would if you purchased the shares yourself.
- Whenever the Company pays a dividend, you’ll be entitled to it and this will be used to purchase more shares for you. These shares are called ‘Dividend Shares’.
Purely for illustration purposes and to attempt to demonstrate the generosity of SSE’s contribution:
- For the purpose of this example, say SSE shares were trading at £14.00 per share. A monthly contribution of £42.00 (before tax and National Insurance, which would essentially be enough at £14.00 per share to buy three shares) would attract the equivalent of an SSE contribution of £84.00 (i.e. a further six shares at £14.00 each), so £42.00 grows to £126.00!! Of course terms and conditions apply and these are detailed comprehensively in this site. Remember too that the share price fluctuates and SSE has no control over what price shares are actually bought at.
When/how do I join?
As a general rule, you can join the SIP at any time provided you have completed one month's service. Certain employees, however, who may be considered ‘insiders’ may need to seek permission from the Company before applying to join the SIP and may be prohibited from applying during restricted periods. If you’re considered to be an ‘insider’ you’ll know about this of course!
- Once you’ve completed one month’s service, Computershare Plan Managers (the Plan administrator) will send you your Shareholder Reference Number (SRN) and PIN which will enable you to register at www.computershare.com/sseshareplans.
- If you’ve been with the Company some time already but haven’t got round to joining SIP and want to now, call the employee plans helpline on 0844 472 6103 to have your SRN and PIN sent to you.
- Share purchases generally take place at the start of the following month.
What else should I bear in mind…
- Investing in shares is an investment decision. Share prices can go down as well as up. The SIP should be considered a long-term investment.
- You may withdraw your Partnership and Matching Shares after three years, but you’ll pay income tax and National Insurance on the market value at that point in time.
- For maximum income tax efficiency, you should leave your Partnership and Matching Shares in the SIP for five years.
- The Company reserves the right to alter/withdraw the terms of this offer at its discretion.
- The full Terms and Conditions of the Plan.
- If you receive any income related benefits, joining the Plan may affect these so you should speak to the Citizens Advice Bureau or an Independent Financial Adviser if appropriate. Please see Ts & Cs for further details.
But what if …
- I can’t afford to continue the amount I’m contributing
You can change your level of contribution whenever it suits you, so if you need to reduce and/or stop temporarily or permanently you can log into www.computershare.com/shareplans with your Shareholder Reference Number (SRN) and pin. From the menu on the left hand side of the page select "Contributions" and then "Change" and follow the next steps.
Alternatively, with agreement from your payroll, you can complete a Payment Change Form.
- I need to take my shares out of the SIP?
You can ask for your Partnership Shares to be released to you at any time, but if you ask for this you may pay income tax and National Insurance. The amount of income tax and National Insurance payable will depend on how long the shares have been held.
Importantly, too, if you take your Partnership Shares out of the Plan within three years of acquiring them, you’ll lose your Matching Shares.
The value of any Partnership Shares taken out of the plan, which are subject to tax and national insurance, will be advised to the payroll department by Computershare and will be processed in the next monthly payroll run. No net advances will be given in respect of these shares.
This microsite is intended to provide summary information about the SIP. In the event of any conflict between the content of this microsite, the SIP Rules and the terms of the Trust or any interpretation of them and tax legislation, the Trust Deed and the SIP Rules and legislation will prevail.