Pension guarantee meaning

In this issue: Spring Budget 2024 Brexit UK, EU and international regulators and bodies Authorisations, approvals and supervision Prudential requirements Financial crime and sanctions Complaints, compensation and claims handling Investigations, enforcement and discipline Capital markets regulation Benchmark regulation and IBOR reform Derivatives regulation Dispute resolution for financial services lawyers Sustainable finance and ESG Banks and mutuals Investment funds and asset management Insurance regulation Payment services and systems Fintech and cryptoassets Competition in financial services EEA Agreement Annex IX (Financial Services) Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts New and updated content Dates for your diary Spring Budget 2024 Spring Budget 2024—key Financial Services announcements In the Spring Budget 2024, the chancellor of the Exchequer, Jeremy Hunt, unveiled a suite of measures affecting financial services, including in particular the possible creation of a Private...

Original news Mr R (CAS-63759-L4H8)—20 August 2024 Summary The Deputy Pensions Ombudsman has dismissed a grievance concerning entitlement to a guaranteed annuity rate. Accordingly, the complaint regarding the payment method tied to the guarantee failed. Under the policy conditions, the guarantee was only available as an annuity paid yearly in arrears. Should the member opt for monthly instalments, the guarantee would not apply. The member’s illustrations were generic projections and did not specify the form of annuity to be selected at retirement. The Ombudsman’s decision underscores the primacy of the policy wording. What were the facts? Mr R was a member of the Phoenix Life Personal Pension Plan (the Scheme) which was operated by Phoenix Life Limited (Phoenix)...

Original news Mr N (CAS-49110-X6N4)—16 August 2024 Summary The Pensions Ombudsman has found in favour of a complaint concerning an insurer’s refusal to allow flexibility around a guaranteed annuity rate. The complainant held two insurance policies, with only one benefiting from a guaranteed annuity rate. To access that guarantee, the insurer insisted he take all of his benefits with the same provider. The Ombudsman concluded that nothing in the policy wording permitted the insurer to curtail the member’s flexibility in this manner. This determination underscores that the contractual terms are pivotal in defining an insurer’s rights and obligations. What were the facts?...

FORTHCOMING CHANGE 1 : Section 10 of the Finance Act 2022 will raise the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028, except for members of the firefighters, police and armed forces public service pension schemes. This increase applies broadly across registered schemes, subject to the stated exemptions. The same Act will also permit members of registered pension schemes to access benefits before 57 where, on or before 4 November 2021, they either held an ‘unqualified right’ to draw benefits, or were already engaged in a substantive transfer to a scheme providing an unqualified right to a protected pension age below 57 on or before 4 November 2021. To rely on this new protection applying in 2028, the scheme’s rules must, as at 11 February 2021, have contained an unqualified right to take entitlement to scheme benefits before age 57. For more detail, see Practice Note: Increasing the normal minimum pension age (NMPA) to 57—pensions impact. FORTHCOMING CHANGE 2 : The Pension...

FORTHCOMING CHANGE: On 23 October 2025, the DWP opened a consultation on proposals for ‘Retirement CDC schemes’, a fresh pension design aimed solely at retired members. Under the plans, savers with DC pots could, at retirement, move their funds into a collective pool that pays trustee-run lifetime income, recalibrated each year in line with investment outcomes and the health of the scheme. These Retirement CDC arrangements would sit as sections within Master Trusts or in unconnected multi-employer vehicles. For more detail, see: Decumulation-only CDC schemes, below. For legislative consistency, the Pension Schemes Act 2021 (PSA 2021) uses ‘collective money purchase’ for what are commonly called ‘collective defined contribution’ (CDC) schemes. This Practice Note treats the two labels as interchangeable. Why develop a CDC framework? CDC works by sharing risk across a broad membership, allowing schemes to aim for (though not legally guarantee) a target pension; this relieves employers or trustees of uncapped obligations and spares individuals the burden of turning their pot into a lasting income. Such...

This Practice Note cites decisions of the Court of Justice of the European Union. For advice on the extent to which EU rulings bind the courts of the United Kingdom, consult Practice Note: Assimilated law — Assimilated case law. The legislative framework Two distinct legislative strands must be assessed when considering part-time workers and discrimination. The first concerns equal treatment as between men and women. Because, historically, women have been more likely than men to work part-time, employment conditions, including pension scheme terms, that treat part-time staff less favourably may amount to discrimination against women. The second concerns measures directed specifically at safeguarding part-time workers. Equal treatment legislation Provisions intended to guarantee equality for men and women in relation to pension schemes have a long history. The current domestic position is contained in section 67 of the Equality Act 2010 (EqA 2010), which stipulates that any pension scheme lacking a sex equality rule is to be regarded as if such a rule were included. This ensures...

Name: ________________________________ Date of Birth: ________________________________ Membership Number: __________________ National Insurance Number: ____________________ Company Name: ________________________ Address: ____________________________________ Date Joined Scheme: ___________________ Date of Leaving: ____________________________ To the Trustees of the [ insert name of scheme ] Pension Scheme (the ‘Scheme’). I have benefits within the Scheme and apply to move the value of those benefits from the Scheme as outlined below. This also covers any amounts that would be paid from the Scheme to my dependants or beneficiaries if I were to die. I confirm I have received a statement of entitlement for my Scheme benefits showing the cash equivalent transfer value (CETV) as at my guarantee date. I wish to transfer my benefits to the Receiving Arrangement(s) listed here: Name of Receiving Arrangement: ________________________________ Address of Receiving Arrangement: ________________________________ HMRC Registration Number: ________________________________ DECLARATIONS Decision to transfer out • The choice to transfer my benefits to the Receiving Arrangement is mine alone,...