1 The Corporate Annuity Service Annuities in the new pensions environment. The growing need for annuity advice.
2 Introducing Origen Launched in 2004, Origen provides high quality independent financial advice for private individuals and companies. Origen combines the resources, skills and specialist capabilities of five dynamic and successful businesses: Advisory & Brokerage, Aurora, Elliott Bayley, Momentum and Wentworth Rose. We believe this combination of experience and expertise enables us to deliver a breadth and depth of service that few advisers can match. Origen is part of AEGON, one of the world s largest listed financial services groups. Our commitment To demonstrate both new levels of insight into your situation, and clarity of advice To help you make financial planning decisions with more confidence Our vision To offer your members an advice-led service without parallel The Origen Corporate Annuity Service is available at several levels. In this brochure, you can find details on the following pages: 2 Annuity counselling 3 Migrating from final salary 4 Choice of service levels 5 Bespoke service 6 Exploring all options
3 Total expertise The Origen Corporate Annuity Service is a dedicated operation, staffed by highly experienced specialist consultants. It is also a major player in the industry, transacting over 100 million in annuity business in Of course, many advisers may claim to provide annuity services, but it takes deep resources, highly qualified consultants and long experience to deliver successfully at this specialist level. By using the Origen Corporate Annuity Service, both you and your employees can benefit from our expert knowledge of the entire range of retirement options. In addition, you gain direct access to the comprehensive financial planning and advisory services offered through Origen. Our pedigree Our expertise in the corporate annuity market was initially developed by Wentworth Rose. One of Origen s constituent specialists, the company was also one of the UK s leading annuity and income drawdown advisers. In 1998 Wentworth Rose pioneered a joint venture with the Telegraph Newspaper Group to offer readers specialist annuity advice. Building on this, we expanded into the corporate annuity and professional connections markets. As a result, the Origen Corporate Annuity Service is now a market leader in annuity advice. Complementary planning services Our annuity advice is fully supported by the other specialist services needed when planning the welfare of employees. 1
4 You show your commitment to your employees through direct contributions, matching arrangements and, indeed, by establishing and running the scheme. However, it is no less essential to provide your people with a professional annuity service at retirement. Otherwise, faced with a complexity of options, they could very easily make mistakes which could prove very costly indeed. The absence of annuity counselling clearly puts your people at risk. Yet this can be provided as part of our Corporate Annuity Service package, which can be at no cost to your company. Annuity counselling and the Law Both employers and trustees have a specific legal duty of care to act in the best interests of the members at all times. This extends to offering assistance at the point of retirement and annuity purchase. No second chance Your people have saved for their retirement for many years, so choosing the right annuity (or alternative) is crucial. Never forget that once an annuity is purchased, it cannot be changed, transferred or altered. There is no going back. It is essential to make the right decisions at the right time. As an employer, you invest significantly in your employees pension arrangements. A clear need for annuity counselling 2
5 Migrating from final salary Over the past 20 years, increasing numbers of high-profile employers have closed their final salary pension arrangements, or started to run them down. In the light of economic and demographic changes, this is not surprising. Many pension schemes began with relatively low membership, and with members 20+ years from retirement. But the schemes have now grown to include thousands of members, many of whom are fast approaching retirement. Today, money purchase schemes are becoming the norm. But whereas final salary arrangements simply paid retiring members their pension and tax-free cash, money purchase scheme members retire with a personal fund. Investing this opens up a large choice of annuity provider and income structure. There are also a number of new options that may now need to be considered, if retirement income is to be maximised. New retirement options for your members Impaired Life Annuities aimed at improving retirement income Pension Fund Withdrawal (PFW) offering income drawdown and providing greater flexibility for income planning before, during and after retirement. You will find more information about how these services are delivered on page 6 (in the Exploring all options section). What s more, after A-day (6th April 2006), there is even greater scope for retirement planning. 3
6 Choice of service levels Full individual advice When you want advice on all the options available at retirement, select our full advisory service. Your dedicated Origen consultant gives each member of your scheme a full analysis of his or her options, followed by the appropriate recommendations. We cover the range of issues relating to the member s long-term retirement plans. This can include discussing options such as tax-free cash restrictions, protected rights, and even the potential for regime change. This service can be provided by you (as employer or trustee), or can be arranged direct with the individual member. Charges are competitive. Once the member has accepted our recommendations, all paperwork and administration are handled by Origen. We give recommendations regarding: Competitive annuity rates The exact structure of the personal income plan Benefits for members Benefits for spouses and dependants, and guarantee periods. Impaired life and investmentlinked annuities More complex solutions, based around income drawdown or phased retirement. Web-based solution Many people know what annuity structure they require, and are simply looking for the highest annuity rate. For these people we offer our online annuity calculation service. As a scheme administrator, all you need do is enter a member s requirements. The system then gives you instant quotations from the leading providers. You can also download all the necessary key features and other paperwork, and can print off acceptance documentation ready to be signed and returned to us. Once this is received, we take responsibility for the remaining paperwork (including chasing where necessary), to ensure the policy is established promptly. This level of service is provided on a commission basis only. The commission payable is always clearly stated on the member s quotation, and does not affect the annuity rate available. For more information about our Web-based solution, please visit us online at If you would like a full system demonstration, including the generation of live quotations and documentation, just get in touch. 4
7 Large schemes need to be tailored to meet their members exact requirements and expectations. For this reason, our fully bespoke service offers you high levels of flexibility. This includes options such as white label presentation and specific helpline services. We believe it is essential that you offer your members an annuity service that can focus on all areas of the new pensions landscape. This demands considerable expertise, as the details of individual schemes and individual members all affect the choice of annuity. Indeed, clarity of advice is never more imperative than when arranging annuities. Unlike almost all other financial arrangements, an annuity is final: once signed and sealed, there is no going back. Rapport Whichever service level you select, Origen gives you one point of contact; a senior consultant who is responsible for both liaising with you, and dealing with all your members requirements. This system is designed to meet your needs and the needs of your members. Bespoke service 5
8 Exploring all options After consulting with your members individually and analysing their precise needs, we can advise them in detail about whichever types of annuity offer the most benefits. We then take them through detailed discussions, delivering advice in every relevant area. We use a stringent panel process to select the most appropriate products to recommend. The key factors considered are the income offered product features and the financial strength of the provider. (While all providers are considered and may be made available, we only recommend those that meet strict financial strength requirements.) Where your members have larger pension funds, we can also help with Pension Fund Withdrawal and Phased Retirement strategies. These are available on a fee or commission basis, agreed directly with the individual member. Because of the complexity of the issues covered, this advice is delivered through face-to-face consultations. Because members often have more than one pension plan, we can also arrange annuities for plans held independently of your company. In these cases, we ask the individuals concerned to meet any additional charges that may be required. All charges are clearly specified before proceeding. Origen covers all annuity types: Enhanced Annuities With Profit Annuities Impaired Life Annuities Unit Linked Annuities Smoker/Lifestyle Annuities Flexible Annuities Origen covers all scheme types: Group Personal Pension Plan (GPP) Group Stakeholder Plans Additional Voluntary Contributions (AVC/FSAVC) Executive Pension Plans (EPP) Section 32 Buy Out Plans Section 226 and Personal Pension Plans (RAC&PP) Death in Service Arrangements Final Salary Benefit Buy Outs 6
9 Final salary solutions Traditional final salary schemes pay pensions from the scheme assets, rather than by securing the benefits with annuity providers. In recent years, of course, many final salary schemes have experienced considerable pressure and we are often asked to secure specific benefits at the lowest cost to the scheme. This can take the form of providing benefits for individual members on retirement, or by providing bulk buy outs. Whichever route is taken, the savings can be very significant. We would recommend considering this strategy whenever there are concerns about future liabilities, or where final salary schemes are in the process of being wound up. Change &clarity 7
10 A simplified future? Pensions Simplification is fast approaching, with A-day on 6th April But while simplifying today s complex regulations, this will also generate a flood of new options. In this new environment, specialist advice will become even more important. We are now incorporating all the changes into our advice system, to ensure that our clients make the most of the new arrangements. We will also be pleased to give you comprehensive guidance notes, with our compliments. Investing tax-free cash Most pension arrangements generate a proportion of tax-free cash at retirement. If this is simply put on deposit, growth prospects are limited When individual members are looking for a higher return from their cash, we can advise on both investment and tax-efficient income options We will assign a specialist investment consultant to help the individual decide on investment options. 8 PS: Pension provision in the UK and levels and bases of taxation are subject to change. This document is based on current Inland Revenue practice which may change in the future.
11 Contact us For more information, simply call or contact your local Origen branch. You can also find more information online at or you can contact us by at
12 Origen is a trading name used by Origen Financial Services Limited which is authorised and regulated by the Financial Services Authority Chancery Lane, London WC2A 1JA. CA001a/V1/FEB05