As an alternative to a secured
scheme pension you must offer the member the
opportunity, otherwise known as an open market option, to purchase
a
lifetime annuity contract. You may of course be in
a position of obtaining a quote from an
insurance company you have close links with, and
pass the offer on to the member for consideration, but they can
reject it. However if the member fails, after a suitable timescale,
to select a lifetime annuity contract of their own choosing, you
may provide one on their behalf.
If they do decide to obtain a lifetime annuity from another
source you must not pass the funds directly to the member. The
member must tell you:
You will then be responsible for buying that contract from the relevant insurance company on the member’s behalf. The contract can be purchased either in the name of the scheme trustees or in the name of the member, as desired.
| Glossary ( RPSM20000000) |
