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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

guaranteed annuity rate

    56an arrangement in a pension scheme to provide benefits whereby, in defined circumstances and irrespective of the prevailing market rate for annuities when those benefits come into payment, a member is entitled to:

      1. (a) an annuity at a minimum specified rate; or
      1. (b) benefits equivalent to that annuity at that minimum specified rate, including a minimum guaranteed income under a retirement annuity but excluding, for the avoidance of doubt:72
        1. (i) fixed or guaranteed benefits in an individual pension contract that replaced similar safeguarded benefits under a defined benefits pension scheme;72
        1. (ii) an entitlement to a lifetime income paying a guaranteed minimum pension that results from contracting out of the State Earnings Related Pension Scheme; and72
        1. (iii) a defined benefit minimum that accrues or may accrue at the same time as money-purchase benefits under a pension arrangement. 72