Deferred annuity Definition

GLOSSARY

Published by a ��Ӱ�� Pensions expert

What does Deferred annuity mean?

annuity that starts to pay out from a future date.

View the related practice notes about Deferred annuity

Transfers and personal pensions

Transfers and personal pensions A pension transfer occurs when a person's entitlements under one pension scheme are moved to another pension scheme. The transferring scheme transfers relevant assets to the receiving scheme and the receiving scheme becomes responsible for the provision of benefits in respect of the relevant person. The members of all UK registered pension schemes which are personal pension schemes have an overriding statutory right to transfer the cash equivalent value of their benefits to another pension arrangement, subject to meeting certain prescribed conditions. Many personal pension schemes also permit transfers out in a broader range of circumstances than those in which the statutory right arises, eg: • partial transfers • transfers of benefits that are in drawdown, and • transfers of particular assets in non-cash form It is important in practice that transfers paid from personal pension schemes are paid in circumstances that amount to the payment of a recognised transfer for HMRC purposes and that do not unwittingly lose the benefit of any tax-related...

Contents of Wills—annuities

Contents of Wills—annuities An annuity is a sum of money payable periodically, out of personal estate. Savery v Dyer (1752) Amb 139 (not reported by ��Ӱ��®). It is personalty Parsons v Parsons. An annuity is a legacy and a bequest of such a capital sum as may be necessary to produce the amount of the annuity. Annuities are sometimes useful if a drip-feed approach is required. They are essentially, legacies payable by instalments for the lifetime of a beneficiary. The Will should provide if: • the executors have the power to purchase the annuity from the estate's capital assets • the executors set aside a sum from income to fund the purchase of the annuity • the executors set aside a sum from both capital and income to fund the purchase of the annuity • the annuity is purchased during the executors' lifetimes, if they have the funds to do so, the deferred annuity being vested in trustees on death Depending on the method...

Discover our 18 Practice Notes on Deferred annuity

Can a right to a Guaranteed Minimum Pension (GMP) under a Section 32 buy-out policy (where the transfer came from a defined benefit occupational pension scheme) be claimed as an asset by the Official Receiver?

Can a right to a Guaranteed Minimum Pension (GMP) under a Section 32 buy-out policy (where the transfer came from a defined benefit occupational pension scheme) be claimed as an asset by the Official Receiver? A section 32 buy-out policy is a deferred annuity contract. Where the transfer value paid to the section 32 policy is in respect of benefits which include rights to Guaranteed Minimum Pension (GMP), the insurer undertakes to pay the GMP to the policyholder from GMP payment age (age 65 for a man and 60 for a woman) or to pay the spouse’s GMP to the member’s widow or widower on the member’s death. Section 11 of the Welfare Reform and Pensions Act 1999 provides that rights under approved pension arrangements are excluded from a bankrupt’s estate. 'Approved pension arrangements' include registered pension schemes and annuities purchased for the purpose of giving effect to rights under a registered pension scheme including an annuity in payment before 6 April 2006 giving effect to schemes which were approved...

Can the court enforce a pension sharing order if the party to whose favour the order has been made refuses to complete the necessary paperwork to obtain their share?

Can the court enforce a pension sharing order if the party to whose favour the order has been made refuses to complete the necessary paperwork to obtain their share? One of the most important aspects of pension sharing is to ensure prompt implementation so that the original intention of the court, when making the pension sharing order, is not distorted by changes in valuation or other factors. One of the prime responsibilities of the family lawyer acting for the person with the benefit of the pension credit is to ensure that the pension sharing order is implemented. This could include recommending an independent financial advisor. However, the person with the benefit of the pension credit may state no preference as to an internal or external transfer, may fail to identify a destination arrangement, or may request an internal transfer within a scheme which does not offer this option. The trustees must then determine a default option, either selecting an arrangement for the transfer or, indeed, transferring the pension credit internally....

See the 2 Q&As about Deferred annuity

Pensions schemes newsletter 161—August 2024

HMRC has published Pensions schemes newsletter 161 for August 2024. The newsletter includes various updates concerning the lifetime allowance (LTA) abolition legislation, the pension flexibility data, details on the managing pension schemes service and details on migrating retirement annuity contracts and deferred annuity contracts.

Pensions Dashboards—final rules and guidance for FCA-regulated pension providers

Pensions analysis: On 1 November 2022, the Financial Conduct Authority (FCA) released a policy statement (PS) setting out its final rules and guidance for FCA-regulated pension providers, who will be required to provide information about personal and stakeholder pensions for the pensions dashboards project. Pensions dashboards are intended to be secure digital interfaces where consumers can view information about their pensions that are not yet in payment. To make pensions dashboards a reality, a legislative framework has been established and specific responsibilities have been delegated to key industry bodies, the Money and Pensions Service (MaPS) and the FCA. Jade Rigby, associate at Hogan Lovells, looks at some of the key points made in the PS and the next steps FCA-regulated pension providers will have to take.

Read the latest 12 News articles on Deferred annuity

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

Case studies

"While we began looking at ��Ӱ�� products primarily for cost saving, it quickly became more about customer service, ease of onboarding, ongoing training and breadth of resources available."

Co-Op

Access all documents on Deferred annuity

GET ACCESS NOW

Top

Trial

��Ӱ��

GLOSSARY