Compulsory Purchase Annuity Plan Terms and conditions
Contents Introduction 3 Plan summary 3 Amount and types of annuity 3 Terms and conditions your contract with us 5 How to contact us 6 2
Introduction This booklet explains the terms and conditions of your Zurich Plan. Please keep it in a safe place with your key features document and the annuity schedule. We ve tried to use plain language in this booklet but avoiding all technical terms is difficult. Where we ve included them, we ve explained what we mean. Plan summary Your Zurich Plan (the plan) is a legally binding agreement between Zurich and you for the payment of pension rights built up by you under a registered pension scheme, in accordance with the requirements of the Finance Act 2004 as amended. The plan pays you a secure lifelong income (called an annuity), in return for a single payment of funds built up under the relevant scheme. Currently, an annuity cannot be cashed in or given away (assigned) to anyone else. On your death the regular income payments will stop unless you have chosen one of the guaranteed options or an annuity becomes payable then to your partner or another beneficiary. An annuity which becomes payable to a second life is called a joint life annuity. Your pension rights may include former protected rights. Former protected rights Means rights under a pension scheme which arose from the payment of minimum contributions in connection with contracting out of the additional state pension scheme or the transfer of contracted out rights from another Registered Pension Scheme and such other rights as may have been prescribed as Protected Rights under Section 10 of the Pension Schemes Act 1993 (Protected rights and money purchase benefits), including Guaranteed Minimum Pensions and section 9(2B) rights. Until 6 April 2012, protected rights funds had to provide 50% of your annuity income to a surviving husband, wife or registered civil partner on your death. This rule no longer applies where the trustees have amended the scheme rules. We will let you know if this rule still applies to you at the time you ask to take your benefits. Amount and types of annuity You may choose from the following: Monthly, quarterly, half-yearly or yearly This is the frequency with which you will receive income payments. In advance This means that an immediate income payment will be made on the start date. In arrears This means that an income payment will not be made until a complete month, quarter, half year or year, depending on the frequency of payments, has elapsed since the start date. For example, with a yearly in arrears annuity the first payment will not be made until a year after the start date of your annuity. The start date is shown on your annuity quotation. Where your annuity is payable in arrears, no part payment will be made after your death in respect of the period since the last payment was made. The final payment will be that paid prior to your death (unless an annuity becomes payable to your partner or another beneficiary or you have chosen one of the guarantee options). 3
Yearly increase in payment At each anniversary date the amount of income you will receive will increase by the percentage shown on the annuity quotation or change in line with the Retail Prices Index (RPI) if you have chosen this option for annual changes in the value of annuity payments. If there is no percentage increase shown and no reference to changes in line with RPI, the income you will receive will not increase and will always remain at the amount shown on the annuity quotation. The anniversary date is the yearly anniversary of the start date of your annuity. Guarantee period This means that the annuity payments will be guaranteed for 5 or 10 years from the start date. If you die before the 5 or 10 years expires, we will pay the regular payments at the time that they are due over the remainder of the 5 or 10 year periods, together with any increases. If you do not wish to have a guarantee, you can choose to have no guarantee period. Joint life annuity A joint life annuity will continue to provide an income after your death to a named survivor and will be paid at the rate shown for the lifetime of any partner or another beneficiary. If the annuity is paid to a dependent child, it will normally be paid for a limited period until age 23. For example, if you have selected a joint life annuity for a named partner or another beneficiary of 2/3rds of the amount paid during your lifetime, a reduced annuity of 2/3rds of your annuity will be payable to the named partner or another beneficiary during their lifetime. This will be on the same terms, without any guarantee, as your annuity. This reduced income will commence either from the next payment due after your death, or the end of the guarantee period, if later, where the terms of the plan do not provide for payment to start on death in addition to any guaranteed payments. 4
Terms and conditions your contract with us The initial amount of income you will receive is shown on the annuity schedule. The annuity quotation will also show the type of annuity you have chosen. Once you have chosen the type of annuity this cannot be changed. You must notify us in writing of any change of address. We will use the address shown on the application form for all correspondence until we are notified otherwise. We may ask you to provide proof of your date of birth and proof of the date of birth of your partner or another beneficiary who may receive annuity income after your death. We may also ask for proof that you, or any person receiving an annuity, are alive and continue to be entitled to receive the annuity payments. We may ask for this at any time and may ask for this more than once. If reasonable proof is not provided within a reasonable time we may stop or suspend annuity payments. This document contains all of the terms of the contract with us. Changes, or additions, to the contract can only be made in writing from our HeadOffice. If your age or date of birth is incorrectly stated on the application form or on the annuity quotation, we can change the terms of the annuity to reflect your actual age. If any event or change in circumstances makes it impossible or illegal to carry out the terms of the annuity, the terms and conditions may need to be amended by the actuary to enable the annuity to continue, and/or to stop the illegality. When deciding what amendments are necessary, the actuary must act reasonably and with due regard for his professional duties. Actuary The actuary is Zurich s appointed actuary at the time. An actuary is a qualified professional who makes mathematical assessments of costs and probabilities and, accordingly, sets payment and rates for insurance and pension contracts and deals with a range of financial matters related to the business of insurance companies. Planholder The planholder will be the person(s) shown on the annuity quotation if this annuity was taken out by the trustees of an occupational scheme or by the scheme administrator of a personal pension scheme. Payment of annuity benefits Benefits will be payable to you or, where appropriate, your partner or another beneficiary unless we are directed to make payments to another person by the planholder. Currently, neither you nor the planholder can cash in your annuity for a cash sum. We can only make payments to a bank account held by you or as directed by the planholder. When paying annuity payments we will deduct any tax we are required or authorised to deduct. If the currency of the United Kingdom is replaced by the euro, we ll change the payments to euros. Contracts (Right of Third Parties) Act 1999 A person or company who was not a party to this contract has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this contract but this does not affect any right or remedy of a third party which exists or is available apart from that Act. 5
How to contact us If you have an adviser this will normally be your first point of contact. We will not give you any financial advice. If you wish to contact us before the annuity starts, your contact will be that shown on the correspondence you receive from us setting out details of the annuity options available. After the annuity has started, if you have any questions or wish to contact us at any time you can phone us, write to us or send a fax: Phone: 0870 242 2860 Monday to Friday 8.00am 6.00pm (we are not open on bank holidays). We may record or monitor calls to improve our service. Write to: Zurich Assurance Ltd The Grange Bishops Cleeve Cheltenham Gloucestershire GL52 8XX Fax: 01242 271671 Keep in touch It s important that we keep in touch so, if you change your address, let us know using one of the methods above. We want everyone to find it easy to deal with us. Please let us know if you need information about our plans and services in a different format. All our literature is available in large print or braille, or on audiotape or CD. If you are a textphone user, we can answer any questions you have through a Typetalk Operator. Call us on 18001 0870 901 2772. Or, if you d prefer, we can introduce your adviser to a sign-language interpreter. 6
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Please let us know if you would like a copy of this in large print or braille, or on audio tape or CD. PW124163A51 (04/ 15) RRD Zurich Assurance Ltd, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales under company number 02456671. Registered Office: The Grange, Bishops Cleeve, Cheltenham, GL52 8XX. Telephone: 01793 514514. We may record or monitor calls to improve our service.