Legacy Products

Question 1

List the main legacy pension products

Answer 1

Section 32 Buyout Bond

Executive Pension Plan

Retirement Annuity Contract (s. 226)

Question 2

What factors should be considered specifically in relation to Section 32 Buyout Bonds?

Answer 2

• What is the TV, does its value cover the GMP / will the provider permit a transfer?
• What is the revalued GMP at 65?
• How much PCLS is available?
• Performance of the fund and bonus history
• Do contract terms allow fund to be switched / what are the other investment options?
• Fund charges
• Any GARs?

Question 3

Factors to consider for Retirement Annuity Contracts

Answer 3

• Is the TV more than £30,000?

- Does the contract include a GAR?

Question 4

Factors to consider for EPPs

Answer 4

• Does the member have scheme specific PCLS? How much PCLS can be taken?
• Is there a GAR?
• Performance of the investments and investment options
• Charges