Annuity meaning

THIS CHECKLIST APPLIES TO TRUSTEES OF PRIVATE SECTOR DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES This Checklist has been archived. It summarises the actions DB trustees needed to take in the run-up to 6 April 2015, and afterwards, to accommodate the pension flexibilities (also called pension freedoms) introduced on 6 April 2015. For more about the nature of those reforms, see Practice Note: Pension freedoms—an introduction [Archived]. In this Checklist, ‘DB trustees’ denotes the trustees (or managers) of arrangements other than those providing flexible benefits, i.e. excluding: money purchase arrangements cash balance arrangements other arrangements that typically require an individual to buy an annuity Note that the additional voluntary contribution (AVC) facilities of defined benefit schemes do, in effect, amount to arrangements offering flexibilities. The issues set out in Pension flexibilities: steps for DC trustees to take—checklist [Archived] are therefore relevant to trustees of such schemes, but only to the extent that the AVC facilities are concerned. Preliminary steps ...

THIS CHECKLIST APPLIES TO TRUSTEES OF DEFINED CONTRIBUTION (DC) OCCUPATIONAL PENSION SCHEMES This Checklist has now been archived. It sets out the actions DC trustees were required to undertake both before and after 6 April 2015, concerning the pension flexibilities/pension freedoms that came into effect on 6 April 2015. For further detail on the scope and nature of those reforms, refer to Practice Note: Pension freedoms—an introduction [Archived]. Within this Checklist, 'DC trustees' refers to trustees (or managers) of pension arrangements providing flexible benefits, ie: money purchase arrangements cash balance arrangements other arrangements which typically require an individual to purchase an annuity Step 1—preliminary steps familiarise yourself with the pension flexibilities in detail...

According to the FCA's figures, 41,500 individuals accessed their pensions for lump-sum withdrawals in the last financial year, up 14.6% from 36,200 a year earlier, the watchdog said. At the same time, the FCA noted a 13.6% slide in annuity sales, falling to 59,100 over the last financial year from 68,500 the year before, according to the regulator. The regulator also reported that transfers from defined benefit to defined contribution schemes decreased, dropping to 18,073 in the financial year ending March 2023 from 26,619 in the preceding year...

In this issue: Cases and decisions Insurance types UK regulation EU regulation International regulation Financial crime and sanctions Cases tracker Dates for your diary Daily and weekly news alerts LexTalk®Insurance: a Lexis®Nexis community Cases and decisions Makin (by his mother and litigation friend) v The Restaurant Muse Ltd and others This appeal arose from a dispute about policy coverage. The court concluded that: The insured (Second Defendant) did not meet the policy’s notification requirements by failing to promptly inform the insurer (Third Defendant) of the incident and ensuing claim. Those notification provisions were conditions precedent to cover, allowing the insurer to refuse indemnity due to the breach. The prior judgment fixing the insured’s liability to the Claimant bound the insurer under the Third Parties (Rights Against Insurers) Act 2010. See: [2025] EWHC 895 (KB). Insurance types Marine A broker cautioned...

OAC, a subsidiary of the Broadstone Group, reported via its quarterly redress tracker that, as of early April, a typical complainant might be set to receive only £12,000 in compensation, compared with more than £150,000 two years earlier. The firm explained that overall levels of redress have fallen sharply and materially owing to recent rises in annuity rates. As a result, pension transfer customers may now expect a higher level of income from their new pots, OAC noted. That, the company said, would minimise the financial shortfall faced by individuals pursuing compensation...

This Practice Note concentrates on the matters that applied prior to 6 April 2016—the date on which salary-related contracting-out (often called DB contracting-out) was brought to an end—when buying out these contracted-out salary-related (COSR) entitlements: guaranteed minimum pensions (GMPs)—the benefits built up by COSR scheme members as a result of contracting out between 6 April 1978 and 5 April 1997 Section 9(2B) rights (also referred to as post-1997 COSR rights)—the benefits accrued by COSR scheme members as a result of contracting out between 6 April 1997 and 5 April 2016 The legislative requirements that applied differed according to whether the relevant contracted-out rights were GMPs or Section 9(2B) rights. For guidance on the buy-out considerations from 6 April 2016 for Section 9(2B) rights and GMPs, see Practice Note: Buying out Section 9(2B) rights and GMPs from 6 April 2016. For general issues relating to buy-outs, see Practice Note: De-risking—pension buy-outs and buy-ins. For information on the ending of DB contracting-out on 6 April...

FORTHCOMING DEVELOPMENT : Section 10 of the Finance Act 2022 will lift the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028, with members of the firefighters, police and armed forces public service pension schemes excluded. The Act also preserves access before age 57 for members of registered schemes who, on or before 4 November 2021, either already held an ‘unqualified right’ to draw benefits, or were part-way through a substantive transfer to a scheme conferring an unqualified right to a protected pension age below 57 by that date. To rely on this 2028 protection, the scheme’s rules must, as at 11 February 2021, have contained an unqualified right to take scheme benefits before 57. For more detail, see Practice Note: Increasing the normal minimum pension age (NMPA) to 57—pensions impact. As a general position, members of registered pension schemes can commence taking pension benefits from age 55 (from age 50 before 6 April 2010), unless they meet the ill-health condition...

ARCHIVED: This archived Practice Note reviews the impact of Solvency II (a European risk-based solvency capital regime applying to insurance and reinsurance companies and in force from 1 January 2016) on UK pensions. It is not maintained and is for background information only. What is Solvency II? Solvency II establishes a harmonised prudential framework for insurance and reinsurance companies across Europe. It consists primarily of: The Solvency II Directive 2014/17/EU (OJ L 60/34) (Solvency II). Regulatory technical standards and non-binding guidelines, including Commission Delegated Regulation (EU) 2015/35 (the Solvency II Delegated Regulation). Developed in response to the 2008 financial crisis, which revealed that risks had been underestimated, the regime requires insurers to measure risk, report it, and hold appropriate capital. The objective of Solvency II is to strengthen protection for consumers of insurance products by embedding risk management and governance requirements, and by mandating a market-consistent valuation of an insurer’s assets and liabilities. The underlying intention is that sound risk...

This precedent has been produced on the basis that the drafter is acting for the buyer. The following warranties have been prepared for a transaction where: The Buyer will provide pension benefits through its own arrangement or via an appointed provider; and Employees’ past service benefits will not be transferred to the Buyer’s arrangement. You are strongly advised to involve a pensions specialist at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 7 inclusive: Employee means [ [specify as necessary, either by category or by named individuals ]; Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or similar benefit to be given on retirement, long-term ill-health or death, or pursuant to a pension sharing order, in relation to the service or historic service of an Employee or any other person, or...

This precedent is prepared on the footing that the drafter acts for the Seller. It is prepared on the basis that the target company (the Company) is a subsidiary of the Seller. It is strongly recommended that a pensions specialist is engaged at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 12 (inclusive), the following definitions set out below shall apply: Employee means any current or former employee, officer, or director of the Company [ or of any Group Company ] [ and any other individual involved in the management of the Company’s affairs ] ; Pension Scheme means any arrangement or practice providing for, or contributing towards, an annuity, pension, lump sum, gratuity, or similar benefit on retirement, long-term ill-health, or death, or pursuant to a pension sharing order, arising from the service or historic service of an Employee or any other person, or for the benefit of that individual’s dependants; and Pension Schemes shall be construed accordingly......

This template has been prepared on the basis that the writer is acting for the buyer, and that the target company (the Company) is a subsidiary of the Seller. It is strongly recommended that a pensions expert is engaged at the earliest opportunity. 1 Definitions For purposes of paragraphs 2 to 9 inclusive, the following apply: Employee means any present or former employee, officer, or director of the Company [ or of any Group Company ] [ and includes any other person participating in the management of the Company’s affairs ] ; Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or for contributing towards, an annuity, pension, lump sum, gratuity, or a similar benefit to be provided upon retirement, ill-health, death, or a change in service status, or in compliance with a pension sharing order, in relation to the service or historic service of an Employee or any...

Tithes Tithes represent a tenth share of all produce—praedial, personal, and mixed—owed to God and, by extension, to the ministers of His church for their support and maintenance. They fall due annually on everything that, with husbandry, yields increase through the act of God, even if that increase is not realised in each year, the obligation nonetheless arising from such productive potential... Tithe rentcharges The difficulty of gathering tithe in kind, coupled with the variable income it produced, prompted early moves to compound tithes: voluntary arrangements termed ‘moduses’ or compositions real, and those established by local or general statutes referred to as ‘corn rents’ or tithe rentcharges. Then, in 1836, a formal process was set out for commuting all tithes into tithe rentcharges, whether achieved by agreement or enforced by compulsion; in practice, almost all tithes have subsequently been so commuted...