Advisers need to act on Open Annuities come A-Day

Recently-appointed NAPF chairman Robin Ellison, who serves the same duty at pension specialist firm Open Annuities, says advisers cannot afford to sit back and wait, as Open Annuity will require amendments following 6 April 2006. Ellison says open annuity allows the pension fund to remain invested after A-Day, unlike the new alternatively secured pension (ASP), while money is drawn from the fund with limits referenced to market annuity rates and, on death, a capital lump sum – instead of taxable income – is instantly available via the member’s estate. In the case of a surviving spouse, ...