Key Features of the Pension Annuity

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The Just Retirement Pension Annuity is an annuity which provides you with a secure income for the rest of your life, however long that may be.

Its aims

• To enable you to use the pension fund you have saved with another company to secure a retirement income from Just Retirement for the rest of your life
• To give you the opportunity to arrange benefits most suited to your personal circumstances
• To enable you to provide benefits for your spouse or dependant after your death, if you so wish.

Your commitment

• You make a once-and-for-all decision about the amount and type of retirement benefit you want. In some cases your choice of benefit may be limited by the rules of your pension scheme
• You will not be able to change your mind or go to another life assurance company once you have bought your annuity, i.e. your income for life.

Risk factors

• Your circumstances might change after your income starts
• You may not have made adequate provision for your spouse or dependant
• The contract (and therefore payments) will stop when you die, unless you have selected the guarantee or value protection option and you die before your 75th birthday
• Inflation may exceed any rate of escalation provided by your retirement income. If this happens, it will decrease your purchasing power
• The total return from the annuity will depend on how long you and (if applicable) your spouse or dependant live – or if you have value protection
• Once the plan has started it cannot be stopped
• The plan has no surrender value at any time
• Dependency will be assessed at inception of the policy. Your dependant will be asked to sign a form to confirm that they are financially dependent on you at the time of your death.

QUESTIONS AND ANSWERS

What is the Pension Annuity?

• The Pension Annuity is a contract purchased with a pension fund. The annuity provides you with a retirement income in the form of a series of regular payments for the rest of your life. If you wish to take a tax-free sum and this has not been paid by your existing pension fund provider, you may be able to arrange for this to be paid by Just Retirement. All benefits will be paid in accordance with current pension legislation and rules specified by Her Majesty’s Revenue & Customs (HMRC). Please note, Just Retirement cannot accept Guaranteed Minimum Pension (GMP) benefits.

How will it work for me?

• Enclosed with these Key Features you will find a quotation showing how much income you might expect to receive based on the sum invested. Your personal quotation is based on an assumed value of your accumulated pension fund. If the final value of your pension fund is higher or lower than the amount shown, the level of your retirement income will vary accordingly.

What are my options?

If you buy your annuity with Just Retirement rather than the company which currently holds your pension fund, the fund will be transferred to us. Subject to limits laid down by HMRC and pension scheme rules, a variety of options are available to you.

Your options are:

• To use the whole of the fund to buy a pension annuity (income for life);
• To take a tax-free lump sum (if permissible under the rules of your existing arrangement) and use the balance of the fund to purchase a reduced pension annuity for the rest of your life;
• To start with a smaller retirement income at outset, which increases each year by a fixed percentage;
• To start with a smaller retirement income at outset which will increase or decrease in line with inflation and help maintain your purchasing power;
• To start with a smaller retirement income at outset which will increase but not decrease in line with inflation and help maintain your purchasing power;
• To take a smaller benefit for yourself in exchange for a spouse or dependant’s retirement income if you die before them;
• To take a smaller retirement income at outset but with a guarantee that it will be paid for an agreed number of years, say for at least five years, even if you die before then;
• To have your retirement income payments made monthly, quarterly, half-yearly or yearly, in advance or in arrears;
• To take a smaller retirement income at outset, in exchange for a possible lump sum on death, should you die before your 75th birthday. This amount will be subject to tax.

Which option is right for me?

Many of the options will alter your retirement income. You should consider what difference each option would make in the light of your personal circumstances, such as your health and that of any spouse or dependant, together with your view on future inflation rates, for example. Some pensions may be required to have certain options included automatically because of legislation. For example, if your fund includes Protected Rights you may have to include a spouse or civil partner at a set rate.

How long do I have to make a decision?

The quotation from Just Retirement is valid for 14 days. After that, you have until your annuity has been set up to consider what you want to do, although you should be aware that the figures quoted could change according to market conditions.

If Just Retirement receives the completed application form and funds from your previous arrangement after the quotation has expired, no guarantee can be given that the amount of retirement income will remain the same. If the quotation has to be changed because of this, Just Retirement will immediately send your financial adviser a revised quotation, which will indicate how long you have to make your decision and ask if you still wish to proceed.

If I choose to proceed with Just Retirement, is my decision final?

It cannot be final until 30 days after you have received notice of your right to cancel from Just Retirement. You have 30 days to make up your mind whether to proceed. Full details are provided in the leaflet headed “Your right to withdraw” that will have been given to you by your financial adviser. If you change your mind after sending in your application form, you should immediately inform Just Retirement using the separate withdrawal request. This should be marked for the attention of The Administration Manager and sent to the address shown on the back of this Key Features Document.

What service will Just Retirement provide?

• Pay your annuity for the agreed amount at the agreed intervals for the rest of your life or for the guaranteed period if this is longer;
• Pay increases at the appropriate amount each year, if applicable;
• Pay a benefit to your spouse or dependant, if applicable, in the event of your death;
• Account for tax at the appropriate rate under the Pay As You Earn system, unless the annuity income is payable to the Trustees of your pension scheme;
• Notify you on the scheme anniversary of the income payable for the following year.

How much will the advice cost?

• Your personal quotation will provide details of the cost of advice. This will have been presented to you by your financial adviser before asking you to sign the application.