Annuity restrictions by Inland Revenue

Members of occupational pension money purchase schemes are not allowed to buy with-profits annuities unless the trustees have made specific provisions for them to do so. The Inland Revenue has a requirement that the rules of the scheme must contain a provision that allows the retiring member to choose whether or not to take an investment-linked contract or one that cannot be reduced below its initial annual rate. With six life offices now offering with-profits annuities and more looking at the developing market occupational pension members may not be eligible. Gillian Cook, at Bacon & Wo...