Annuity Policy
For a Compulsory Purchase Annuity
from an occupational pension scheme
Please keep this Policy
in a safe place, along with
the accepted Annuity
Quotation, the Statement
of Benefits and the Key
Features Document.
Annuity policy for a Compulsory Purchase Annuity from an occupational
pension scheme
This is the Policy for the annuity the trustees have purchased. It contains the full legal
explanation of the annuity and the Policy Conditions – that is, the contractual terms
and conditions – relating to it.
This Policy is designed to provide trustees of occupational pension schemes with the
means of securing either a lifetime annuity or a scheme pension, as defined in section C
of this Policy.
This Policy can also be used to provide a lifetime annuity for a scheme member who
has already started to draw their pension in the form of drawdown, and who has asked
the trustees to replace that pension with a lifetime annuity.
The Policy outlines our understanding of the tax treatment and regulations governing
the annuity in force at the date the Policy is issued. It is important to understand that
like all legislation, the tax treatment and other provisions can change in the future.
Definitions
A number of specific words and expressions are used in this Policy. These words
and expressions are shown in bold print and their meanings are set out in section C
of the Policy.
Address for correspondence
Please address any letter about this document, called the "Policy", to:
Prudential
Annuities Contact Centre
Lancing
BN15 8GB
Please read the Policy, Statement of Benefits and the Annuity Quotation carefully.
If amendments are required, please return the documentation to us straight away.
Important
This Policy is a general-purpose annuity policy. It describes a variety of options,
features and benefits. Some of these may not be relevant to the annuitant's annuity.
The Policy needs to be read alongside the accepted Annuity Quotation in order to
understand the particular options, features and benefits that apply.
If you would like copies of this document in Braille, large print or on audio tape,
please contact us at the address shown above.
02 Planning For Retirement
Contents
A. General
4
1. Introduction
4
2. Important Notes
4
B. Agreement
5
C. Meaning of words
5
D. Conditions
9
1. First annuity
9
2. Second annuity
9
3. Third annuity
11
4. Payment of benefits
12
5. Annuity guarantee
13
6. Changes to amounts of annuity payments
14
7. Taxation
17
8. Non-profit benefits; surrenders; transfer of ownership
17
9. Production of documents and other evidence
17
10. Proof of age and marriage/civil partnership
18
11. Notices to the trustees and/or an annuitant
18
12. Changes to benefits and amendment of policy conditions
18
13. Divorce and dissolution
18
14. Annuity terms not in accordance with provisions of the scheme
18
15. Third party rights
19
16. Applicable law
19
17. Financial Services Compensation Scheme
19
E. Other Information
19
1. Complaints
19
2. Long-term business
19
3. Pensions business
19
Planning For Retirement 03
A. General
1. Introduction
The trustees of the Scheme have paid
Prudential a premium in respect of some
or all of the first annuitant’s pension
entitlement. This is so that Prudential can
set up a lifetime annuity or a scheme
pension to cover the trustees’ liability
under the Scheme to pay a pension in
respect
of the first annuitant (and his or her
dependants, if relevant) and so that the
first annuitant can start to receive his
or her pension.
We will issue (or have already issued)
other documents. These include the
following:
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Annuity Quotation
>
Key Features Document
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Statement of Benefits
These documents and the Policy
should be read carefully. They all contain
important information and should all be
kept in a safe place. They are normally
sent to the first annuitant or his or
her Financial Adviser for safekeeping.
The first annuitant should make sure
that the people who will handle the
affairs of his or her estate when he
or she dies, know where they are kept.
04 Planning For Retirement
2. Important Notes
(a) Contracting-out benefits
This Policy covers guaranteed
minimum pension, which is a type of
pension that can arise if an individual
was contracted-out of the State
Earnings-Related Pension Scheme.
If the Annuity Quotation does
not show a contracting-out pension
then the annuities payable under
the Policy will not include any
contracting-out benefits and all
references to guaranteed minimum
pension should be disregarded.
(b) Compulsory requirements
Certain compulsory requirements
apply to pensions arising from
contracting-out. The compulsory
requirements concern increases to
pensions, guarantee periods and
the need to provide pensions for the
first annuitant’s legal spouse or
civil partner on his or her death.
The compulsory requirements are
explained in this Policy.
Compulsory requirements regarding
increases to pension also apply to
pensions accrued in “defined benefit”
pension schemes on or after 6 April
1997. These apply to the annuity if
the Scheme is a defined benefit
occupational pension scheme.
If any of the compulsory requirements
apply to the annuity, this will be
indicated in the Annuity Quotation.
(c) Annuity terms to be in accordance
with the provisions of the Scheme
Some of the terms – such as the
level of increases to pensions and
guarantee periods – chosen for the
annuity must be permissible under
the provisions of the Scheme. At the
time when the trustees accept the
Annuity Quotation, we require
them to confirm the accepted terms
are permissible. We cannot accept
any liability if the terms of the annuity
are not allowed under the provisions
of the Scheme. If we discover that
any of the terms of the annuity do not
comply with those provisions, we may
have to change the amount and/or
terms of the annuity. See also section
D14 of this Policy.
(d) Lifetime Allowance
At the time when the Annuity
Quotation is accepted, we require
confirmation from the trustees or
the first annuitant that the value
of the benefits does not exceed the
annuitant's Lifetime Allowance.
We cannot accept any liability if it is
later discovered that the annuitant's
available Lifetime Allowance has
been exceeded and the annuitant
has become liable to pay a Lifetime
Allowance Charge.
B. Agreement
Act
This is the Pension Schemes Act 1993.
Subject to section D14, we have agreed
to provide the benefits described in the
Policy. The agreement results from the
trustees’ payment to us, of a premium
to insure their liability to pay benefits
under the Scheme in respect of the
first annuitant, and where relevant,
the second annuitant and/or
third annuitant.
Although the trustees are the
policyholder, the trustees agree
that we send the Policy to the first
annuitant or to the first annuitant's
advisers for safe-keeping.
C. Meaning of words
In the Policy the words “Prudential”,
"we", "us" and "our" refer either to:
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Prudential Retirement Income
Limited, if the annuity is a Level
Annuity, or a Fixed Increase
Annuity, or an LPI Annuity,
or an Increasing GMP Annuity,
or an RPI-Linked Annuity; or
The Prudential Assurance Company
Limited, if the annuity is an Income
Choice Annuity.
An “annuitant" is a person receiving
an annuity. This can refer either to the
first annuitant or to his or her spouse,
civil partner or other dependant as
defined below, depending on the
context and circumstances.
Annuity change date
This is the date on which we change
the amount of a Fixed Increase
Annuity, an LPI Annuity, an RPILinked Annuity, an Increasing GMP
Annuity or an Income Choice Annuity
under section D6. The annuity change
date may be either:
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the anniversary of the annuity start
date, or
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any other date that we agree with
the trustees.
If the annuity change date is not the
anniversary of the annuity start date,
the first annuity change date must not
be more than twelve months following
the annuity start date and must be a
date on which a payment would normally
be made under the Policy.
Any change under section D6 is calculated
as at the annuity change date and
takes effect from that date. Please note,
however, that if the annuity is payable
“in arrears”, the new amount will actually
be payable from the next payment date
following the annuity change date.
The annuity start date is indicated
in the Annuity Quotation and the
Statement of Benefits. It will be either:
>
the date on which we receive all of
the purchase money(s), or
>
it may be a specified date agreed
between the trustees and us.
Annuity Quotation
This is the annuity quotation provided by
us and which has been formally accepted
by the trustees. A copy of the accepted
Annuity Quotation is issued with the
Policy and the Statement of Benefits
as confirmation of the accepted terms.
The accepted Annuity Quotation forms
part of the contractual documentation
and this Policy needs to be read and
understood in conjunction with it.
These two documents should be
kept together with the Statement
of Benefits and the Key Features
Document.
The Annuity Quotation will be issued
either by Prudential Retirement Income
Limited or The Prudential Assurance
Company Limited.
Civil partner
A registered same-sex civil partner.
Annuity start date
This is the effective date from which
the Policy is set up. If the annuity is set
up to be payable “in advance”, the first
annuity starts to be paid on the annuity
start date. If, however, the annuity
is set up to be payable “in arrears”,
the first annuity will start on a later
date, called the first arrears date.
First annuitant
The first annuitant is the client named
in the Annuity Quotation, being a
member of the Scheme.
Planning For Retirement 05
First annuity
First arrears date
An annual amount payable in respect
of the first annuitant. The first annuity
is the total annual amount (including
any guaranteed minimum pension)
shown in the Annuity Quotation as being
payable in respect of the first annuitant.
If the payments are set up to be paid
“in arrears”, the first payment will be after
the annuity start date. The actual date
of the first payment in this case is the
first arrears date.
Fixed Increase Annuity
The first annuity will be, in whole or
in part:
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non-increasing, in which case it will
be a Level Annuity, or
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increasing by a fixed percentage,
in which case it will be a Fixed
Increase Annuity, or
>
linked to changes in the RPI,
in which case it will be an
RPI-Linked Annuity, or
>
an LPI Annuity, in which case
increases will be linked to changes
in the RPI, subject to a maximum
percentage, or
>
an Increasing GMP Annuity, if any
part of the annuity is guaranteed
minimum pension accrued after 5
April 1988 and before 6 April 1997; or
>
linked to the performance of
the Prudential With-Profits Fund,
in which case it will be an Income
Choice Annuity.
More detail on the significance of these
different types of annuity is given in
section D6.
Details of which one or more of these
options apply to the first annuity will
be indicated in the Annuity Quotation.
06 Planning For Retirement
This is any part of the first annuity,
second annuity, or third annuity which
is indicated in the Annuity Quotation as
being subject to fixed annual increases,
and for which the payments will be
increased at the same level throughout
the life of the relevant annuitant.
The rate(s) at which the annuities will
increase will also be shown in the
Annuity Quotation.
The way in which Fixed Increase
Annuities are increased is described
in section D6 (f).
GMP date
This is the date from which the first
annuitant’s fully revalued guaranteed
minimum pension (if any) must be
payable. It is age 65 for men and age 60
for women.
Guaranteed minimum pension (GMP)
This is an annual amount paid as a
result of being contracted-out of the
State Earnings-Related Pension Scheme
by reference to sections 13 to 23 of the
Act, through membership of a “defined
benefit” occupational pension scheme,
before 6 April 1997.
If this applies, the amounts of
guaranteed minimum pension
payable in respect of the first annuitant,
the second annuitant (or, if applicable
the third annuitant), will be shown on
the Annuity Quotation. The amount(s)
of guaranteed minimum pension
shown may be an amount that includes
revaluation to the GMP date, or to
any other date supplied to us by the
trustees. If the amount shown on the
Annuity Quotation does not include
revaluation up to the GMP date,
the amount to which the first annuitant
is actually entitled at the GMP date will
include any further revaluation that is
required by law.
There will be a guaranteed minimum
pension only if the benefits under the
Scheme include this benefit.
Guarantee period
This is a period during which the
first annuity will continue to be
paid, notwithstanding the death
of the first annuitant within that
period. The guarantee period (if any)
is set out in the Annuity Quotation.
The guarantee period cannot exceed:
>
five years from the annuity start
date in the case of that part of the
annuity which is guaranteed
minimum pension, and
>
ten years from the annuity start
date in the case of that part of
the first annuity which is not
guaranteed minimum pension.
Income Choice Annuity
Level Annuity
Lifetime annuity
An Income Choice Annuity is
an annuity which pays a retirement
income linked to the performance of
the Prudential With-Profits Fund.
This is any part of the first annuity,
second annuity, or third annuity
which is indicated in the Annuity
Quotation as being non-increasing,
and for which the payments remain at
the same level throughout the life of the
relevant annuitant.
A lifetime annuity is an annuity
which is guaranteed to be payable
for the lifetime of the first annuitant.
A lifetime annuity can only be paid
under a pension scheme which is a
money purchase arrangement and the
first annuitant must have been given
the opportunity to select the insurance
company.
If any part of the first annuity or
second annuity is an Income Choice
Annuity, we will issue a separate
Appendix which describes the special
terms which apply. The Appendix needs
to be read in conjunction with this Policy
and the Annuity Quotation.
Increasing GMP Annuity
This is any part of the first annuity,
second annuity or third annuity
which is guaranteed minimum
pension accrued after 5 April 1988
and before 6 April 1997. An Increasing
GMP Annuity will increase each year
either at a fixed rate each year (of not less
than 3%) or in line with changes in the
RPI subject to a maximum percentage
each year (of not less than 3%).
Lifetime Allowance and Lifetime
Allowance Charge
The Government has set a limit for each
tax year on the value of the benefits
that can be taken from registered
pension schemes, above which a
liability for a Lifetime Allowance
Charge may arise. This limit is called
the standard Lifetime Allowance.
The standard Lifetime Allowance for
the tax year 2015/2016 has been set at
£1.25 million. The standard Lifetime
Allowance for the tax year 2016/2017
will be set at £1 million. The Government
may change the amount of the standard
Lifetime Allowance from time to time.
Key Features Document
This is a document that we issue before
the annuity is purchased with us. The Key
Features Document sets out the basic
terms and conditions of the contract with
Prudential and is designed to help with
the decision-making. As it sets out the
basic features of the contract, the Key
Features Document forms part of
the contract documentation, alongside
the accepted Annuity Quotation,
the Statement of Benefits and the
Policy. The Policy reflects the terms
and conditions set out in the Key
Features Document, but in more detail.
The standard Lifetime Allowance
may, however, be varied in relation to an
individual if his or her benefits are eligible
for certain protections as authorised by
HM Revenue & Customs.
When benefits are taken, the value of
the benefits will be compared with the
individual's available personal Lifetime
Allowance at that time.
If an individual takes benefits valued
above his or her personal Lifetime
Allowance, the excess (when paid) will
be taxed at 25% if taken as pension and at
55% if taken as a cash sum. This charge is
called the Lifetime Allowance Charge.
This Policy is designed to provide either a
lifetime annuity or a scheme pension.
LPI Annuity
This is any part of the first annuity,
second annuity or third annuity
which has been set up to have what
we call “Limited Prices Indexation”.
Payments will be linked to increases
in the RPI subject to a maximum
specified percentage, as set out in
the Annuity Quotation.
Pension credit rights
If an annuitant becomes divorced (or if his
or her civil partnership is dissolved), his or
her ex-spouse (or ex-civil partner) may
be awarded pension credit rights in
relation to the benefits under the Policy.
Policy
This document, together with any
endorsements, any addenda, or any
appendix that we issue to supplement it.
Policyholder
This means the trustees for the time
being of the Scheme.
Planning For Retirement 07
Registered pension scheme
A pension scheme or pension
arrangement that is registered with
HM Revenue & Customs. This gives
the scheme or arrangement various tax
advantages in respect of payments,
investments and benefits.
RPI
Subject to section D6 (g), this is the
Retail Prices Index published by
HM Government.
RPI-Linked Annuity
An RPI-Linked Annuity is any part of
the first annuity, second annuity or
third annuity which pays a retirement
income linked to changes in the RPI.
The income is fixed for the first year
and then changes each year in line
with changes in the RPI. An RPI-Linked
Annuity will not necessarily increase and
may even decrease (see section D6 (g)).
If the annuity is an RPI-Linked
Annuity, this will be indicated in the
Annuity Quotation.
Scheme
This is the employer-sponsored
occupational pension scheme named in
the Annuity Quotation, of which the
policyholder is the trustee or trustees.
Scheme pension
A scheme pension is a type of pension
which is guaranteed to be payable for the
lifetime of the first annuitant and which
cannot (except in narrowly defined
circumstances) be reduced.
A scheme pension can be paid by
the trustees of a pension scheme from
the resources of the scheme. Where a
scheme pension is secured through
an insurance company, the insurance
company is chosen by the trustees or
administrator of the scheme.
08 Planning For Retirement
This Policy is designed to provide a
scheme pension or a lifetime annuity.
Second annuitant
This is the first annuitant's legal spouse,
civil partner or other dependant. If a
dependant is named in the Annuity
Quotation, then that named dependant
is the second annuitant. The second
annuitant may be defined as the first
annuitant’s spouse, civil partner or
other dependant either at the annuity
start date or at the date of his or her
death. The definition that applies will
be shown in the Annuity Quotation.
In the case of any contracting-out
benefits, the benefits must always be paid
to the spouse or civil partner at date of
death (see sections D2 (j) and D3).
Second annuity
An annual amount, as shown on the
Annuity Quotation, which includes
guaranteed minimum pension (if any).
There will be a second annuity if the
annuity has been set up on what we
call a “joint life” basis.
If at the date of the first annuitant’s
death there is a third annuitant (that is,
the second annuitant is no longer the
first annuitant’s legal spouse or civil
partner and the first annuitant has a
new spouse or civil partner), then we
will reduce any second annuity by the
amount of the third annuity.
Statement of Benefits
This is a document that we issue as
confirmation that the contract with us
has been concluded and the annuity
has been set up. It gives brief details of
the benefits. Full details of the amounts
of the payments and the options that
have been selected are set out in the
Annuity Quotation.
Third annuitant
This is the first annuitant’s legal spouse
or civil partner at the date of the first
annuitant’s death, if at that time the
second annuitant is no longer his or
her legal spouse or civil partner and
the first annuitant has a new spouse
or civil partner.
Third annuity
An annual amount of guaranteed
minimum pension (if any). There will
be a third annuity only if there is a
guaranteed minimum pension and if,
at the date of the first annuitant’s death,
the second annuitant is no longer his
or her legal spouse or civil partner and
the first annuitant has a new spouse or
civil partner.
The third annuity will change or
increase on the same basis that applies
to the guaranteed minimum pension
element of the second annuity.
Trustees
The trustees are the trustee or trustees
for the time being of the Scheme,
named in the Annuity Quotation and
the Statement of Benefits.
The trustees have applied for the Policy
in order to provide benefits in the form of
a lifetime annuity or scheme pension
under the Scheme. The trustees are
therefore the policyholder entitled to
exercise all contractual rights under the
Policy, although the Policy is sent for
safekeeping to the first annuitant or
his or her Financial Adviser.
D. Conditions
1. First annuity
We will pay the first annuity to you,
the first annuitant. It starts with effect
from either:
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the annuity start date, if the first
annuity is payable “in advance”
(that is, at the start of specified
intervals), or
the first arrears date, if the first
annuity is payable “in arrears”
(that is, following the end of
specified intervals);
(c) Joint life option for other pensions
A “joint life” pension is not
compulsory in the case of any
pension in excess of guaranteed
minimum pension.
Such pensions will be set up on a
“joint life” basis if:
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and is paid as described in section D4.
The Annuity Quotation will indicate
whether the first annuity is payable
“in advance” or “in arrears”.
The first annuity cannot in any
circumstances be exchanged for a lump
sum payment (see also section D8 (b)).
2. Second annuity
(a) General
This section D2 applies where the
Annuity Quotation indicates that
there is a “joint life” pension. A “joint
life” pension means that on the first
annuitant’s death, a pension will then
be payable to another person if they
are alive at that date, and this pension
will be the second annuity (or the
third annuity – see section D3).
(b) Compulsory requirements
A “joint life” pension is a compulsory
requirement in respect of any
guaranteed minimum pension.
This means that a joint life pension
must be included even if the first
annuitant is unmarried or is not in
a civil partnership at the annuity
start date.
the provisions of the Scheme
allow the first annuitant to
exercise a choice and he or
she has requested a “joint life”
pension, or
the trustees have specified that
a “joint life” pension is required,
according to the provisions of
the Scheme.
(d) Amounts shown in Annuity
Quotation
The Annuity Quotation will show
which parts of pension have been
set up on a “joint life” basis and
the resulting amount of the
second annuity.
(e) Payment to second annuitant
Subject to section D3, if the second
annuitant is still alive when the first
annuitant dies, we will pay the
second annuity in respect of the
second annuitant.
We will pay the second annuity as
described in section D4.
(f) Start date of second annuity
Subject to section D2 (g), the
second annuity will start as
indicated on the Annuity
Quotation. There are two
possibilities:
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Otherwise, the second annuity
will start with effect from the
day following the first
annuitant’s death.
Any part of the second annuity that
is guaranteed minimum pension
will, however, always start with effect
from the day following the first
annuitant’s death.
(g) Start date of second annuity
if first annuitant dies during
guarantee period
(i) General
If the first annuitant dies before
the end of the guarantee period
(if any) that part of the second
annuity which is not guaranteed
minimum pension will start
as indicated on the Annuity
Quotation.
There are two possibilities:
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The second annuity
(excluding any guaranteed
minimum pension) may start
with effect from the date
described in section D2 (f),
irrespective of whether the
guarantee period has
expired. In this case, if the
first annuitant dies within
the guarantee period, the
remaining payments of the
first annuity (as described in
section D5 (c)) will be said to
“overlap”, and therefore be
paid simultaneously with the
second annuity, or
The second annuity may start
with effect from the date that the
next payment of the first annuity
would otherwise have been due,
or
Planning For Retirement 09
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Otherwise, the second
annuity (excluding any
guaranteed minimum
pension) will start with effect
from the date described in
section D2 (f) or at the end
of the guarantee period,
whichever is later. In this case,
if the first annuitant dies in
the guarantee period, then
the remaining payments of the
first annuity (as described
in section D5 (c)) will not
“overlap”. The second
annuity (excluding any
guaranteed minimum
pension) will start only
once the guarantee
period has expired.
(ii) Guaranteed minimum pension
If the first annuitant dies before
the end of the guarantee period
(if any) that part (if any) of the
second annuity which is
guaranteed minimum pension
will start in accordance with
section D2 (f). In effect payments
of guaranteed minimum
pension will always “overlap”.
(h) Reduction of spouse’s or civil
partner's guaranteed minimum
pension on first annuitant’s death
before GMP date
This section applies where:
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the annuity includes guaranteed
minimum pension,
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the annuity start date is before
the first annuitant’s GMP date,
and
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the first annuitant dies before
GMP date.
10 Planning For Retirement
In such circumstances, we will not
pay the full amount of guaranteed
minimum pension in respect of the
second annuitant (or the third
annuitant, if applicable). We will pay
a smaller amount that we calculate as
being required under the Act.
The fully revalued guaranteed
minimum pension will however
be available from GMP date.
(i) Second annuity cannot
be re-allocated
Except where sections D2 (j) or (k)
or section D3 (b) apply, the second
annuity cannot be re-allocated
to another person, even if the
second annuitant dies during
the lifetime of the first annuitant,
or is divorced from the first
annuitant or where their civil
partnership has been dissolved.
(j) Requirement to pay contractingout benefits on death to legal
spouse or civil partner
If the first annuitant is married,
that part (if any) of the second
annuity which is guaranteed
minimum pension must by law
be paid to the first annuitant’s
legal spouse at the date of death.
In addition, if the first annuitant is
in a civil partnership, that part (if any)
of the second annuity which is
guaranteed minimum pension
accrued between 6 April 1988 and
5 April 1997 must be paid to the first
annuitant's legal civil partner at
the date of death.
See also section D3 (b) for the effect
of remarriage or taking a new civil
partner on contracting-out benefits.
(k) Effect of divorce or dissolution on
the second annuity
(i) This section D2 (k)(i) applies to:
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Guaranteed minimum
pension
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Pension other than
guaranteed minimum
pension where the second
annuitant is defined in the
Annuity Quotation as being
the first annuitant's spouse
or civil partner at the date of
his or her death.
In these cases, if the first
annuitant divorces the second
annuitant after the annuity start
date and does not re-marry, then
the second annuity will not be
payable. Likewise, where a civil
partnership is dissolved after the
annuity start date and the first
annuitant does not enter into a
new civil partnership, then the
second annuity will not be
payable. Where the first
annuitant has remarried or
entered into a new civil
partnership, the relevant part
of the second annuity will be
payable to the new spouse or civil
partner. See also section D3 (b) in
relation to contracting-out benefits.
(ii) In the case where the second
annuitant is defined in the
Annuity Quotation as the
spouse or civil partner at the
date of retirement or at the date
the annuity starts, that part of
the second annuity that is not
guaranteed minimum pension
will be payable to that person,
irrespective of a divorce or
dissolution and, if applicable,
remarriage or new civil
partnership. See, however,
section D3 (b) in relation to
contracting-out benefits.
(l) First annuitant is not married or
is not in a civil partnership
This section D2 (l) applies:
>
>
where the second annuitant
is defined in the Annuity
Quotation as the spouse or
civil partner at the date of the
first annuitant's death; and/or
where the annuity includes
guaranteed minimum pension.
Where the annuity has been set up
on a joint life basis, even though the
first annuitant was unmarried or
was not in a civil partnership at the
annuity start date, the second
annuity will only be payable if the
first annuitant is actually married or
in a civil partnership at the date of his
or her death.
(m)Dependant's commutation lump
sum benefit
Where the rules of the Scheme so
allow, and where certain conditions
are met, the second annuity may be
paid as a lump sum.
The conditions are that:
>
the lump sum payment
extinguishes all of the second
annuitant's entitlement to
any death benefits under the
Scheme, and
>
the lump sum does not
exceed £30,000.
3. Third annuity
(a) General
This section D3 applies where:
>
there is a second annuity, and
>
the second annuity includes
guaranteed minimum pension
under the Policy.
(b) Requirement to pay contractingout benefits on death to legal
spouse or civil partner
As stated in section D2 (j), if the
first annuitant is married or in a civil
partnership, that part (if any) of the
second annuity which is guaranteed
minimum pension must by law be
paid to the first annuitant’s legal
spouse or civil partner at the date
of death. (Note: a legal civil partner
is entitled only to guaranteed
minimum pension accrued between
6 April 1988 and 5 April 1997.
As such, where the second
annuitant is still the legal spouse
or civil partner at the date of the
first annuitant’s death, there will
be no separate third annuitant.
Where the first annuitant and
second annuitant have become
divorced (or their civil partnership
has been dissolved) after the annuity
start date, and the first annuitant
has remarried (or entered into a new
civil partnership) before the date
of death, any part of the second
annuity which is guaranteed
minimum pension cannot be
paid to any second annuitant
named in the Annuity Quotation.
In such circumstances:
>
any part of the second annuity
which is guaranteed minimum
pension will become the third
annuity;
>
the second annuity will be
reduced by the amount of the
third annuity, and
>
the remainder of the second
annuity will remain payable to
the second annuitant, unless we
agree otherwise.
(c) Payment to third annuitant
If section D3 (b) applies and if the
third annuitant is still alive when
the first annuitant dies, we will pay
the third annuity in respect of the
third annuitant.
We will pay the third annuity as
described in section D4.
(d) Start date of third annuity
The third annuity, being composed
entirely of guaranteed minimum
pension will start with effect from the
date set out in either section D2 (f) or
D2 (g)(ii), depending on whether the
first annuitant dies before or after
the end of any guarantee period.
Planning For Retirement 11
(e) Reduction of guaranteed
minimum pension on death
before GMP date
Section D2 (h) also applies to the
third annuity, where:
>
that annuity includes guaranteed
minimum pension
>
the annuity start date is before
the first annuitant’s GMP date,
and
>
the first annuitant dies before
GMP date.
(f) Dependant's commutation lump
sum benefit
Where the rules of the Scheme so
allow, and where certain conditions
are met, the third annuity may be
paid as a lump sum.
The conditions are that:
>
>
the lump sum payment
extinguishes all of the third
annuitant's entitlement to
any death benefits under the
Scheme, and
the lump sum does not
exceed £30,000.
4. Payment of benefits
(a) Payment in respect of
first annuitant
We will pay the first annuity for the
rest of the life of the first annuitant,
or, where there is a guarantee
period which continues after the
death, (subject to section D5) until
the end of the guarantee period.
12 Planning For Retirement
(b) Payment in respect of second
annuitant and/or third annuitant
We will pay the second annuity for
the rest of the life of the second
annuitant (and, where applicable, the
third annuity for the rest of the life of
the third annuitant) except where:
>
the second annuitant (or third
annuitant if applicable) is the
first annuitant’s spouse or civil
partner and special provision
has been made for the second
annuity or third annuity to stop
on the spouse’s remarriage or on
the civil partner entering into a
new civil partnership, or
>
special provision has been made for
the second annuity to be payable
to a person who is a dependant
solely because that person is under
age 23 when the first annuitant
dies. In such a case the annuity
must stop when the second
annuitant reaches age 23.
instructions will be a full and
complete discharge of our liability to
make the relevant payment to them.
(d) Payment intervals
We will pay annuity instalments at
the intervals set out in the Annuity
Quotation.
Where the annuity is stated in the
Annuity Quotation to be payable
"in advance", payment will be made
at the start of the specified interval.
Where the annuity is stated to be
payable "in arrears", payment will be
made after the end of the specified
interval. The Annuity Quotation
will indicate whether the annuity is
payable “in advance” or “in arrears”.
(e) Death of annuitant or annuitant
ceases to be entitled to annuity
If the annuitant dies or stops being
entitled to an annuity partway
between two annuity payments:
>
where the annuity is payable
“in advance" or where the annuity
is payable "in arrears" and the
Annuity Quotation indicates
that it has not been set up to
provide a proportionate last
payment, the recipient can keep
the full amount of the last payment
>
where the annuity is payable
“in arrears” and the Annuity
Quotation indicates that it
has been set up to provide a
proportionate last payment,
we make a payment to the
recipient to take account of
the period between the date
of the last payment and the date
the recipient died or stopped
being entitled to the annuity.
The Annuity Quotation will reflect
these special provisions if they
have been selected for the second
annuity. If they have been selected,
they will automatically apply to the
third annuity.
(c) Recipients of payments
We pay any benefit arising under the
Policy to the trustees. Alternatively,
if the trustees so instruct us, we will
make payment direct to the first
annuitant, the second annuitant,
the third annuitant, or to anyone
else entitled to a benefit under the
Scheme whose details the trustees
give us in writing. Our payment in
accordance with the trustees’
(f) Splitting annuities
We will not split any payment
between two or more people, except
in the circumstances where either:
>
>
a third annuity is payable due to
the first annuitant either
remarrying or entering into a new
civil partnership and the balance
of the second annuity remains
payable to the second annuitant
(as described in section D3 (b), or
an ex-spouse or ex-civil partner
has been awarded pension
credit rights in relation to an
annuitant's benefit under the
Policy or an annuity becomes
subject to a pension sharing order
as described in section D13.
(g) Payment method
Payments to the trustees or to
annuitants will be by direct transfer
to a bank or building society account
in the recipient's name (either solely
or jointly).
(h) Overseas annuitants
Special arrangements may be
necessary for the payment of an
annuity if we are making payments
directly to an annuitant and he or
she moves overseas. The relevant
annuitant should contact us for
further details if this applies. In any
event, if we start the annuity whilst
an annuitant (whom we are paying
directly) is a United Kingdom resident
and he or she then moves overseas,
either the trustees or the annuitant
must inform us when the annuitant
leaves the United Kingdom.
5. Annuity guarantee
(a) General
This section D5 applies if:
>
the Annuity Quotation indicates
that there is a guarantee period
in relation to any part of the first
annuity, and
>
the first annuitant dies before
the end of the guarantee period.
Different guarantee periods may
apply to different parts of the first
annuity. Likewise, the terms that
apply to the guarantee period may
be different for different parts of the
first annuity.
If a guarantee period has been
selected in relation to part or all
of the first annuity, this will be
reflected in the Annuity Quotation.
(b) Compulsory requirements
It is not compulsory to select a
guarantee period in respect of
any guaranteed minimum pension
payable under the first annuity,
but if one is selected, then certain
compulsory requirements will apply.
Any guarantee period in respect
of such benefits must not exceed
five years.
Any guarantee period selected for
all or part of the first annuity must
be permissible within the provisions
of the Scheme. We reserve the right
to change any guarantee period
or the terms that apply to it, if we
discover that the guarantee period
or the terms selected do not comply
with those provisions.
(c) Payment
If the first annuitant dies before
the end of the guarantee period
(if any), we will pay the further
continuing instalments of the first
annuity for the remainder of the
guarantee period. Unless we agree
otherwise, the continuing instalments
cannot be paid as a lump sum.
Subject to section D8 (c), we will
pay these instalments either to the
trustees, or, if the trustees so instruct
us in writing, to the first annuitant’s
legal personal representatives.
If the Annuity Quotation so
indicates, the further continuing
instalments will take account of any
changes to the pension that would
have been due under section D6.
(d) Effect of guarantee on start
date of second annuity and/or
third annuity
See section D2 (g) for details of the
effect of the guarantee period on
the date that the second annuity
and/or third annuity starts.
(e) Defined Benefits Lump Sum
Death Benefit
The Annuity Quotation may
provide for a lump sum, known as a
Defined Benefits Lump Sum Death
Benefit, to be payable instead of
continuing instalments of the first
annuity. In such a case, the terms of
this section D5 (e) will apply instead
of section D5 (c).
Planning For Retirement 13
A Defined Benefits Lump Sum
Death Benefit may only be paid
where the Scheme is a defined
benefit occupational pension
scheme, where the rules of the
Scheme so allow and where the
following conditions are met:
>
the first annuitant died before
age 75;
>
the payment is made within two
years of the date on which the
first annuitant died; and
>
we have not agreed to pay any
other form of authorised lump
sum death benefit in place of the
annuity instalments that would
have been paid over the remainder
of the guarantee period.
The Defined Benefits Lump Sum
Death Benefit will be equal to the
total value of the instalments of
the first annuity payable in the
guarantee period, reduced by
the total value of the instalments of
the first annuity paid to the first
annuitant up to the date on which
the first annuitant died.
If the Annuity Quotation so
indicates, the Defined Benefits
Lump Sum Death Benefit will:
>
take account of any changes to
the pension that would have been
due under section D6; and/or
>
be discounted by a reasonable
amount determined by us to allow
for the payment of the remaining
instalments of the first annuity
payable in the guarantee period
being made earlier than when they
would otherwise have been made.
14 Planning For Retirement
We will pay a Defined Benefits
Lump Sum Death Benefit either to
the trustees, or if the trustees so
instruct us, to the first annuitant’s
legal personal representatives.
>
an Increasing GMP Annuity,
if any part of the annuity is
guaranteed minimum pension
accrued after 5 April 1988 and
before 6 April 1997, or
A Defined Benefits Lump Sum Death
Benefit counts towards the first
annuitant’s available personal
Lifetime Allowance and the
recipient(s) must pay any
Lifetime Allowance Charge.
>
an Income Choice Annuity,
in which case payments will be
linked to the performance of the
Prudential With-Profits Fund.
6. Changes to amounts of annuity
payments
(a) General
The provisions that apply under this
section D6 depend upon the type
of pension and upon the selection
made, as set out in this section D6
and in the Annuity Quotation.
The first annuity, the second
annuity and/ or the third annuity
may be (in whole or part):
>
a Level Annuity, in which case
the payments will remain at a
fixed level amount, or
>
a Fixed Increase Annuity,
in which case payments will
increase by a fixed, pre-selected
percentage, or
>
an RPI-Linked Annuity in which
case payments will be linked to
changes in the RPI (including
decreases, unless a "negative
inflation" guarantee applies as
described in section D6 (g)), or
>
an LPI Annuity, in which
case payments will be linked to
increases in the RPI, but subject
to a maximum percentage
increase indicated in the Annuity
Quotation, or
Any basis selected for all or part
of an annuity must be permissible
within the provisions of the Scheme.
We reserve the right to change the
terms that apply to an annuity, if we
discover that the basis selected does
not comply with those provisions
(see also section D14).
Where the Policy is for a scheme
pension, the pension cannot be set
up as an Income Choice Annuity.
Guaranteed minimum pension
cannot be set up as an Income
Choice Annuity.
(b) Different terms can apply for
different parts of an annuity
An annuity may be comprised of
different parts – for example it may
be partly guaranteed minimum
pension and partly pension accrued
in relation to employer and/or the
first annuitant’s payments. If this is
the case, then different options may
apply or may have been selected
for these distinct parts of the first
annuity. For example, one part
may be a Fixed Increase Annuity
and the other part may be a Level
Annuity. Similarly, the two parts
may be set up to increase at different
percentage rates.
If different options apply to the
distinct parts of an annuity, this will be
indicated in the Annuity Quotation.
(c) Compulsory requirements
(i) Guaranteed minimum pension
Any guaranteed minimum
pension must be set up to comply
with legislative requirements
as follows:
>
>
guaranteed minimum
pension earned in relation to
tax years before 6 April 1988
does not have to increase and
will normally be set up as a
Level Annuity, and
guaranteed minimum
pension earned in relation to
tax years between 6 April 1988
and 5 April 1997 must be set
up as an Increasing GMP
Annuity, that is, an annuity
that either increases at a rate
of not less than 3% each year,
or that increases in line with
the RPI, subject to a maximum
increase of not less than 3%
each year.
Where a guaranteed minimum
pension earned in relation to
tax years between 6 April
1988 and 5 April 1997 starts
to be paid before GMP date,
the guaranteed minimum
pension does not have to
be set up as Increasing GMP
Annuity until the first annuitant
reaches GMP date (see section
D6 (i) for further information).
(ii) Defined benefits accrued after
5 April 1997
If any part of the first annuity
relates to benefits accrued under
a defined benefit occupational
pension scheme after 5 April
1997, then legislation requires
this pension to increase in
payment. This means that the
annuity must at the very least
be an LPI Annuity increasing
in payment as follows:
>
>
pension accrued in relation to
service between 6 April 1997
and 5 April 2005 must increase
in line with increases in the RPI
subject to a maximum increase
of 5% each year, and
pension accrued in relation
to service on or after 6 April
2005 must increase in line with
increase in the RPI subject to
a maximum increase of 2.5%
each year.
(iii) Compulsory requirements are
minimum requirements
The compulsory requirements set
out in section D6 (c) are minimum
requirements and the relevant
annuity may, if the provisions of
the Scheme so permit or so
require, be set up with higher
increases. The rate of increase
that actually applies will be shown
on the Annuity Quotation.
(d) Optional bases for changes to
amounts of annuity payments
Pensions which are not subject to the
compulsory requirements described
in section D6 (c), can be set up using
any of the bases described in section
D6 (a), providing they are permitted
within the provisions of the Scheme.
Once an annuity basis has been
selected it cannot normally be
changed, unless we have to change
it because we discover that it does
not comply with the provisions of
the Scheme (see section D14).
(e) Date from which changes to
amounts of annuity payments
take effect
If this section D6 applies, we will
change the amount of each annuity
at yearly intervals on the annuity
change date.
Where the annuity has been set
up to be paid “in advance”, the new
amount will be payable with effect
from the annuity change date.
Where the annuity has been set up to
be paid “in arrears”, the new amount
will be payable with effect from the
next payment due under the Policy
following the annuity change date.
(f) Fixed Increase Annuities
Subject to section D6 (j), a Fixed
Increase Annuity will be increased
by the percentage rate(s) indicated in
the Annuity Quotation.
Planning For Retirement 15
(g) RPI-Linked Annuities
An RPI-Linked Annuity will be fixed
for the first year and then (subject to
section D6 (j)) will change each year
in line with yearly changes in the RPI.
If the yearly change in the RPI falls
below zero and becomes a negative
amount, the RPI-Linked Annuity
will be reduced by the same
percentage, unless a “negative
inflation” guarantee has been
selected for the annuity. If this
guarantee has been selected,
the RPI-Linked Annuity will not
fall in the event that the change
in the RPI falls below zero.
Linked Annuities or to make any
other changes or arrangements
which we consider to be reasonable
in the circumstances. Similarly,
we reserve the right to adopt a
different index or make other
reasonable changes or arrangements
if the RPI ceases to be the basis
for determining the return on
Government linked stocks. In any
of these circumstances, we will
notify the trustees and/or the
relevant annuitant if, in our
opinion, the annuitant is likely
to be materially affected.
The yearly changes in the RPI-Linked
Annuity will be determined at each
annuity change date. Subject to
section D6 (j), the new amount will
normally be based on the change in
the RPI over the 12-month period
ending 3 months before the annuity
change date. For example, if the
annuity change date is in June, the
increase will be based on the yearly
RPI figure for March. A different
RPI period may however apply to
the Policy if the trustees have so
requested. For example, the RPI
figure may instead be based on a
12-month period ending 2 months
before the annuity change date.
(h) LPI Annuities
The new amount of an LPI Annuity
will be determined at each annuity
change date and will (subject to
section D6 (j)) be linked to increases
in the RPI subject to a maximum
percentage specified in the Annuity
Quotation. In this case, the increase
in the RPI is based on the yearly
RPI figure for the September
of the calendar year immediately
preceding the year in which the
relevant annuity change date falls.
For example, if the annuity change
date is in October, the increase will
be based on the yearly RPI figure for
September in the previous calendar
year, not the September which has
just passed.
An RPI-Linked Annuity will
continue to be so linked for as
long as that index continues to be
published by HM Government, and it
remains the basis for determining the
return on Government linked stocks.
If the RPI is replaced by another
index, whether based on UK or wider
European inflation, we reserve the
right to adopt that index instead,
both for new and existing RPI-
(i) Increasing GMP Annuity
If an Increasing GMP Annuity is
set up to have specified percentage
increases each year, then the relevant
part of the annuity will, subject to
section D6 (j), be increased with
effect from the annuity change
date by the percentage rate indicated
in the Annuity Quotation.
16 Planning For Retirement
If an Increasing GMP Annuity
is set up to increase in line with
changes in the RPI, subject to a
maximum percentage (not less
than 3%) specified in the Annuity
Quotation, then the new amount
will be determined at each annuity
change date. Where the annuity
change date falls between 6 April
and 31 December, the increase in the
RPI is based on the yearly RPI figure
for the September of the calendar
year immediately preceding the
year in which the relevant annuity
change date falls. Where the
annuity change date falls between
1 January and 5 April, the increase
in the RPI is based on the yearly
RPI figure for the September of the
calendar year two years before the
year in which the relevant annuity
change date falls.
As stated in section D6 (c)(i), where a
guaranteed minimum pension
earned in relation to tax years
between 6 April 1988 and 5 April
1997 starts to be paid before GMP
date, the guaranteed minimum
pension does not have to be set
up as an Increasing GMP Annuity
until the first annuitant reaches
GMP date. As such, the guaranteed
minimum pension may be set up
as a Level Annuity for the period
from the annuity start date to
the first annuitant’s GMP date,
and as an Increasing GMP Annuity
thereafter. If this applies, the Annuity
Quotation will reflect the selected
basis and the first increase to the
guaranteed minimum pension
will be made with effect from the
next annuity change date
following GMP date.
(j) Proportionate increase or
decrease where first annuity
change date is less than twelve
months after the annuity start
date or first arrears date
Where the first annuity change
date falls less than twelve months
following the annuity start date or
first arrears date (as appropriate),
the first increase or decrease made
under this section D6 may be
proportioned.
The amount of increase or decrease
will be calculated as follows:
>
>
>
We work out the full increase
or decrease that would be due
had the Policy been in force
for twelve months following the
annuity start date or the first
arrears date;
We then multiply by the number
of days that have elapsed since
that date;
This sum is then divided by 365.
The Annuity Quotation will indicate
if the first increase or decrease will be
proportioned.
(k) Income Choice Annuities
Further conditions applying to
changes to amounts of payments of
Income Choice Annuities are set
out in the Appendix, which is issued
where relevant.
7. Taxation
We will deduct income tax from
any payments if required by law and
pay it to HM Revenue & Customs on
the trustees’ behalf. Alternatively,
the trustees may instruct us in writing
to make payments gross to themselves.
If the trustees instruct us to do this,
they will be responsible for deducting
tax before they pass on the payment to
the relevant annuitant and for paying the
tax to HM Revenue & Customs.
We are not liable for and do not
deal with any inheritance tax arising
on payment(s) (if any) made under
section D5 of the Policy.
We are not liable for and do not deal with
any Lifetime Allowance Charge that
may arise in the event that the benefits
payable under this Policy exceed the
Lifetime Allowance. See section A2(d).
8. Non-profit benefits; surrenders;
transfer of ownership
(a) Non-profit benefits
Unless the annuity is an Income
Choice Annuity, the benefits
arising under this Policy will not
share in the profits of any company in
the Prudential Group of Companies.
(b) Surrenders
The benefits arising under this
Policy may not be cancelled for a
cash payment or any other benefits.
(c) Transfer of ownership
The benefits arising under this
Policy are not capable of mortgage
or transfer to any other party
except that:
(i) ownership may be transferred to
the extent necessary to provide
pension credit rights or to
comply with a pension sharing
order under section 28(1) of the
Welfare Reform and Pensions
Act 1999 or Article 26 of the
Welfare Reform and Pensions
(Northern Ireland) Order 1999,
(ii) following the winding-up or
reconstruction of the Scheme,
a transfer of ownership to
the first annuitant, second
annuitant or third annuitant
(as appropriate at the time)
is permitted.
If any transfer of ownership takes
place, each annuitant will become
entitled to receive the annuity which
is payable for his or her life.
Guarantee payments made under
section D5 may be the subject of a
provision in the first annuitant’s will.
9. Production of documents and
other evidence
From time to time and before making any
payment we may need to see:
(a) the Annuity Quotation and/or
Statement of Benefits,
(b) proof of the identity and right of any
applicant for payment,
(c) proof that a person is still alive,
if payment is claimed or due in
respect of any pension payable
only while he or she is alive,
(d) proof that a person has died,
if payment is due on his or her death.
Planning For Retirement 17
10. Proof of age and marriage/civil
partnership
(a) Before we pay any benefit under
the Policy, we may require evidence
of an annuitant’s age and the age of
any other person for whom a benefit
is payable. If the age previously
notified to us proves to have been
incorrectly stated, we will adjust the
benefits to those that would have
applied if the correct age had been
given. We will make any further
adjustments that are required to
collect any overpayments from the
annuitant or pay any underpayments
that were made before the mistake
was put right. We do not pay interest
on any adjustments that are made
due to underpayment.
(b) If the first annuitant is married or
in a civil partnership and a benefit
is payable to his or her spouse or
civil partner, we may also require
evidence of the marriage/civil
partnership.
11. Notices to the trustees and/or
an annuitant
The trustees must give us an address to
which we will send any notices.
In some circumstances we may also need
to send notices under the Policy to an
annuitant, particularly if we are making
payments directly to him or her. In such
circumstances, the relevant annuitant
must also give us an address to which
we will send notices.
Notices will be treated as having been
received by the trustees and/or the
relevant annuitant two postal days
after posting (excluding Sundays and
Bank Holidays).
Changes in address need to be notified
to us promptly.
18 Planning For Retirement
12. Changes to benefits and
amendment of policy conditions
(a) Subject to sections D6, D8 (c) (i),
D12 (b), D12 (c), D13 and D14,
we will not change the amounts of
benefits once they have come into
payment unless incorrect information
has been provided by or on behalf
of the relevant annuitant or if the
relevant annuitant fails to provide
when requested information we
require for the ongoing payment
of benefits correctly.
(b) Subject to section D12 (c), we can
make changes to the terms of the
Policy providing we obtain the
relevant annuitant’s consent.
(c) We can add to, amend, modify or set
aside any of the terms of the Policy
without the relevant annuitant’s
consent in the following
circumstances:
(i) if it becomes impossible or
unreasonable to follow them
because of a change in legislation
or regulations.
(ii) if the basis of taxing Prudential
changes. We will only change the
Policy in a way that is consistent
with standard industry practice and
allows the balance between the
relevant annuitant and us to remain
as it was before the change.
(d) We will, in any of the circumstances
described in section D12 (c), make
only reasonable changes and give
the relevant annuitant(s) reasonable
notice, and will at all times take
account of our obligation to treat
our customers fairly.
13. Divorce and dissolution
If as a result of a divorce or the dissolution
of a civil partnership, pension credit
rights are awarded to an annuitant's
ex-spouse or ex-civil partner or if an
annuity payable under this Policy
becomes subject to a pension sharing
order under section 28(1) of the Welfare
Reform and Pensions Act 1999 or Article
26 of the Welfare Reform and Pensions
(Northern Ireland) Order 1999, we will
make any necessary changes to the terms
of the Policy to comply with those
pension credit rights or that order.
Such changes may include the reduction
of any annuity in order to take account of
payments that have to be made to
another party. However, changes cannot
normally be made to alter the options
which were selected for the annuity as at
the annuity start date.
The effect of a divorce or dissolution
on the second annuity is explained in
sections D2 (k) and D3 (b).
14. Annuity terms not in accordance
with provisions of the scheme
As stated in section A2 (c), we do not
accept any liability if the terms or options
selected for part or all of the annuity are
not permissible within the provisions
of the Scheme. It is the trustees'
responsibility to ensure that the
benefits purchased are permissible.
If we discover that the terms or options
selected for part of all of any annuity are
not permissible within the provisions
of the Scheme, we can change the
amounts and/or terms of the annuity.
We can also make any adjustments
necessary to correct payments that
have already been made. If, as a result
of such a discovery, we find that the
amounts of the annuity payments
already made need to be increased,
we will make the necessary payment,
but we do not pay any interest in
respect of the underpayments.
15. Third party rights
Although the trustees are the
policyholder, the first annuitant and
any second annuitant and/or third
annuitant have directly enforceable
rights against us in respect of the benefits
under the Policy to which they are
or become entitled. Subject to this,
nothing in the Policy confers or purports
to confer on any third party any benefits
or any right to enforce any term of
the Policy pursuant to the Contracts
(Rights of Third Parties) Act 1999.
16. Applicable law
E. Other Information
1. Complaints
We hope the trustees will never need
to, but if they ever wish to complain
about any aspect of the service they
receive from us, they should first of all
write to us at:
Prudential
Customer Relations Unit
Lancing
BN15 8GB
Please quote any relevant Quote
Reference or Annuity Reference
number. The Annuity Reference
number can be found on the
Statement of Benefits.
The law of England and Wales applies to
the Policy and any disputes connected
with it will be settled in the courts of
England and Wales.
If the trustees are not satisfied with our
response to their complaint, they may be
able to take the complaint to The
Financial Ombudsman Service, at:
The trustees as policyholder and
we agree irrevocably to submit to the
jurisdiction of the courts of England
and Wales.
The Financial Ombudsman Service
Exchange Tower
London
E14 9SR
17. Financial Services Compensation
Scheme
The Policy is covered by the Financial
Services Compensation Scheme for the
purpose of providing compensation in the
unlikely event of Prudential’s insolvency.
If a charge is imposed on us under the
Financial Services Compensation Scheme
(or any other investor compensation
scheme), we can pay for it by imposing
on our policyholders whatever level of
charges is necessary and reasonable,
subject to complying with legal and
regulatory requirements. As such,
if such a charge is imposed in relation
to the Policy we may make an
appropriate deduction from benefits
payable under the Policy.
The Financial Ombudsman Service
considers complaints as a free service
and the trustees’ legal rights will not be
affected if the trustees subsequently
decide not to accept its findings.
The trustees can also refer any complaint
to The Pensions Advisory Service (TPAS)
which may be contacted at:
The telephone numbers of these
organisations are:
>
The Financial Ombudsman Service:
0800 0234 567
>
The Pensions Advisory Service (TPAS):
0300 123 1047
The first annuitant (and other
annuitants) should direct any complaints
about their benefits to the trustees, but if
they wish to complain about the service
they receive from us, they may write to us
directly at the address shown above.
As before, the Quote Reference or
Annuity Reference number should be
quoted in any correspondence.
2. Long-term business
The benefits arising under this Policy are
part of our "long-term business" within
the meaning of the Financial Services and
Markets Act 2000.
3. Pensions business
This annuity is also classed as pensions
business under section 58 of the Finance
Act 2012. The premium which the
trustees paid to Prudential must relate to
pension business in the way described in
section 58 of the Finance Act 2012. If we
discover that this premium did not meet
these requirements, we may modify the
Policy in whatever way is necessary to
ensure that HM Revenue & Customs
does not impose any penalty on us.
The Pensions Advisory Service (TPAS)
11 Belgrave Road
London
SW1V 1RB
Planning For Retirement 19
"Prudential" is a trading name of The Prudential Assurance Company Limited and of Prudential Retirement Income Limited. This name is also used by other companies within
the Prudential Group. The Prudential Assurance Company Limited is registered in England and Wales. Registered office at Laurence Pountney Hill, London EC4R 0HH.
Registered number 15454. Prudential Retirement Income Limited is registered in Scotland. Registered office at Craigforth, Stirling FK9 4UE. Registered number SCO47842.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
ANNM6467 07/2015
www.pru.co.uk