Guaranteed Annuity Rate and IORP

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Bedlam

Registered User
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Hi,

Guaranteed Rate of 11.11% with Phoenix under a Company Pension. Phoenix are not offering a Master Trust or PRSA, if moved to another Company the Rate will be lost.

This strikes me as being very unfair, anybody any experience or advice on what to do here please?

Bedlam
 
Bedlam said:
Hi,

Guaranteed Rate of 11.11% with Phoenix under a Company Pension. Phoenix are not offering a Master Trust or PRSA, if moved to another Company the Rate will be lost.

This strikes me as being very unfair, anybody any experience or advice on what to do here please?

Bedlam
Click to expand...

What’s unfair about it?
 
Hi Gordon,

Unfair, in that for me to be compliant I will loose a very valuable benefit

Bedlam
 
Talk to your broker. Some companies with old policies with valuable benefits are making arrangements whereby the policy can be brought under a Master Trust (or a Buy Out Bond in some instances) without giving up the original policy terms. I don't know if this applies to your specific policy.
 
Do you have this in writing from them ie. we're not doing this or this so this is what you have to do, and tough luck. ?

Onus is on Pheonix to come up with a solution that won't put you in a worse position.


Gerard

www.prsa.ie
 
Hi Gerard

Phoenix have confirmed that they will not be offering either a Master Trust or Trustees Services, only thing they said was that the Benefits could be claimed or transferred to another provider

Bedlam
 
Bedlam said:
Hi Gerard

Phoenix have confirmed that they will not be offering either a Master Trust or Trustees Services, only thing they said was that the Benefits could be claimed or transferred to another provider

Bedlam
Click to expand...
What needs to be done to make it compliant, and what are the costs/consequences of not being compliant?

Do you want an annuity at retirement?
 
Hi Bedlam,

I'd be fighting this. There must be a broker/intermediary attached to the plan who got paid to to set it up for you. Start there, as Liam suggested.

I presume it's paid-up now and that they're adding tiny incremental bonuses (or not) to it and saying that to be fair to all policy holders there will/might be a final bonus.

My understanding is that these are legislative changes around risk, compliance etc. and shouldn't impact a fundamental guarantee on a plan. I'm pretty sure pension providers were able to transfer early exit charges to MT plans so that they, or brokers, weren't out of pocket.

It's just a crappy ultimatum to give a client and I don't think they've thought it through as there might be some blowback for Standard Life Ireland (same ownership) too.

Gerard

www.prsa.ie
 
Last edited:
GSheehy said:
Hi Bedlam,

I'd be fighting this. There must be a broker/intermediary attached to the plan who got paid to to set it up for you. Start there, as Liam suggested.

I presume it's paid-up now and that they're adding tiny incremental bonuses (or not) to it and saying that to be fair to all policy holders there will/might be a final bonus.

My understanding is that these are legislative changes around risk, compliance etc. and shouldn't impact a fundamental guarantee on a plan. I'm pretty sure pension providers were able to transfer early exit charges to MT plans so that they, or brokers, weren't out of pocket.

It's just a crappy ultimatum to give a client and I don't think they've thought it through as there might be some blowback for Standard Life Ireland (same ownership) too.

Gerard

www.prsa.ie
Click to expand...
I'd suspect phoenix don't care, and won't do anything that would cost them money. Any other provider would likely allow the policy to be assigned to a new trustee or Master trust and to remain in place with the guarantees.
 
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