PRODUCT GUIDE
Mortgage Products
Legacy
Disclaimer
Pension Products
Contact
Protection Products
Investment Products
General
PENSION PRODUCTS
COMPULSORY PURCHASE ANNUITIES
General
A Compulsory Purchase Annuity is a pension which has to be purchased when a member of a pension scheme retires. The CPA is purchased using the fund available to the member from the policy. (The money is referred to the pensions business fund and is distinct from a Purchased Life Annuity (covered in Immediate Annuities Section of the Investment Product Section ) the money for which is referred to the life business fund). Similarly, such a pension can be purchased for any dependant on the death of a member of a pension scheme.
A Compulsory Purchase Annuity may be purchased -
We will provide pensions for any insured earmarked policy schemes or arrangements insured with us.
It is common practice, where the scheme rules allow, for the trustees to transfer the residual funds to purchase the pension on the open market to get the best annuity rates and is known as an Open Market Option (OMO). We do not currently accept OMOs from any other arrangement insured elsewhere except where a transfer is made to an arrangement with us before all benefits are vested.
We will accept additional funds into a CPA for a member of one of our Occupational Pension Schemes when the funds from their plan with us are also being used to secure a CPA. We will only accept additional funds from another approved Occupational Pension or Free-Standing AVC Scheme.
Mortgage Products
Legacy
Disclaimer
Pension Products
Contact
Protection Products
Investment Products
General
COMPULSORY PURCHASE ANNUITIES
A Compulsory Purchase Annuity is a pension which has to be purchased when a member of a pension scheme retires. The CPA is purchased using the fund available to the member from the policy. (The money is referred to the pensions business fund and is distinct from a Purchased Life Annuity (covered in Immediate Annuities Section of the Investment Product Section ) the money for which is referred to the life business fund). Similarly, such a pension can be purchased for any dependant on the death of a member of a pension scheme.
A Compulsory Purchase Annuity may be purchased -
- by the trustees of a Free Standing Additional Voluntary Contribution Scheme
- by the trustees of a Final Salary Scheme - to save on costs or to increase the pension and/or to secure the trustees risk
- by the trustee / administrator of a Personal Pension Scheme
- by the member of a Section 32 arrangement
We will provide pensions for any insured earmarked policy schemes or arrangements insured with us.
It is common practice, where the scheme rules allow, for the trustees to transfer the residual funds to purchase the pension on the open market to get the best annuity rates and is known as an Open Market Option (OMO). We do not currently accept OMOs from any other arrangement insured elsewhere except where a transfer is made to an arrangement with us before all benefits are vested.
We will accept additional funds into a CPA for a member of one of our Occupational Pension Schemes when the funds from their plan with us are also being used to secure a CPA. We will only accept additional funds from another approved Occupational Pension or Free-Standing AVC Scheme.
