Short-term annuity meaning

According to the consultancy, proposals advanced under Rishi Sunak’s administration for the Pension Protection Fund to serve as a consolidator for smaller retirement arrangements that cannot otherwise secure an insurance buyout of liabilities would be well received by the market. Although absent from the new Labour government’s Pension Schemes Bill set out in the King’s Speech in July 2024, the idea would aid trustees of smaller schemes as they evaluate long‑term endgame strategies, Broadstone noted in its latest report on settlement pathways for pension schemes across the pensions market at the current time...

THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES ONLY Under preservation law, a short service benefit is the pension entitlement that must be given to a member who leaves an occupational pension scheme before retirement, without any immediate pension being payable. Not every early leaver is entitled to have their pension rights preserved within the scheme itself. This Practice Note considers rights and choices open to early leavers who currently lack a short service benefit. For wider guidance on preserving benefits within schemes, see Practice Note: Early leavers—preservation for more detail. In this Practice Note, references to trustees also include the managers of a scheme. When will an early leaver be entitled to a short service benefit?...

Legacy or bequest The expressions ‘legacy’ and ‘bequest’ are ordinarily confined to a sum of money or a personal item, though in some situations they can also denote a gift or devise of land. Furthermore, whether a ‘legacy’ encompasses an annuity turns on the context. Sir William Page Wood VC, in Gaskin v Rogers, explained that where a Will merely uses the word ‘legacy’ and directs a distribution amongst legatees, then, unless the face of the Will shows the testator has departed from the word’s settled legal meaning, annuitants are included. He added that the term ‘pecuniary legatees’ does no more than exclude specific legatees—namely, those entitled to particular chattels—and it does not, prima facie, prevent annuitants receiving the same advantage as they would have enjoyed had the Will spoken simply of ‘legatees’ rather than ‘pecuniary legatees’. All such interpretative rules remain subject to the fundamental principle: determine, from the Will read as a whole, what can be gathered of the testator’s intention where the words employed are not...

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

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 is prepared on the footing that the drafter acts for the buyer. The warranties below are framed for a transaction where the Buyer: chooses to mirror pension entitlements for transferring Employees within the same pension scheme by executing a deed of substitution to participate and take on responsibility for the scheme, or agrees to accept a transfer of Employees’ past service benefits from the Seller’s pension scheme into its own scheme. You are strongly advised to engage a pensions specialist at the earliest opportunity. 1 Interpretation and definitions For the purposes of paragraphs 2 to 7 (inclusive): [ Employee means [ define as required, either by class or by naming individuals ]; ] Pension Scheme [s] mean[s] [ [ insert name(s) of scheme(s) ] OR any arrangement or practice for the payment of, or contributions towards, an annuity, pension, lump sum, gratuity or comparable benefit provided on retirement, long-term ill-health or death, or under a...