Do I have to accept this annuity

shoi

From and old job (decades ago), I have an annuity already, dated 1994. It comes from from a firm which has now closed down and the pension scheme wound up. I start to get the benefit in a year's time. Not a huge amount but welcome nonetheless
As of 1994 it is 500odd pa 5% escalation. (Clerical Medical)

Do I have any options, or should I be happy with what I have?

Thanks

Steve

Debt_Free_Chick

Ask the pension provider (Clerical Medical), but generally you should be offered something called the "Open Market Option". This means that you are offered a capital sum which you can use to buy an annuity from another provider, so you can shop around.

However, you should also check the terms of the annuity from the current provider. They might include guarantees which can't be matched by other providers.

atush

I agree, you need to know more about the pension to decide, esp if it has any guarantees attached.

jamesd

Is this a "retirement annuity contract" rather than a personal pension? Is it a section 32 buyout?

Since it's from a wound up workplace scheme it's probably going to be better than anything you can get. From your description it seems more like defined benefit than RAC.

xylophone

What exactly is this policy? A S.32 perhaps?

shoi

xylophone wrote: »

What exactly is this policy? A S.32 perhaps?

I've scanned the paper for a "32", and can't see one. The paper is dated 1994, I don't know if the relevant Act was in place then.

Steve
PS Thanks one and all for the pointers

jamesd

Sorry to say that you're going to have to ask them what it is. Hopefully whoever you get there will know enough about it to be able to tell you.

mania112

I was about to ask what 'odd' stood for... it's late!

But, yeah, it's not going to be very helpful here without knowing more about the pension - or at least the total value (to know if £500 inc by 5% is any good).

xylophone

Information about S32 http://www.pruadviser.co.uk/content/support/technical_centre/section_32/