options for taking benefits from old Clerical Medical GAR pension

hyperhypo

No original policy...I suppose formercolleague might provide one..garmeg..that particular letter didn't ref any specific rates. As an aside....this has been a real eye-opener to me how different the world was in late 80s....I wonder how long these schemes ran for?

xylophone

I think that your relative needs to check out the precise terms of this policy.

hyperhypo

I'll pass that on...he tells me that there are a limited number of staff at Scottish Widows who are au fait with the CM GAR product... one in particular very helpful. He really had no appreciation of the intrinsic value..

elouise01582

If you want to know the GAR options then request a copy of the GAR table from Scottish Widows as this should show on which bases (shape of annuity) your relative can claim his pension. Usually a guarantee period of 5 or 10 years can be included (but no longer than 10 years).  I used to work for HBOS which CM was a part of and we saw these quite often.  Unlikely, that you will find better than the guaranteed annuity rate on the open annuity market - especially at the moment.  Do not forget that the tax-free lump sum does not HAVE to be taken - if it isn't then more taxable income for your relative but at 9% that's still 7.20% after basic rate tax so I hope you have thought about that too.

hyperhypo

Appreciate point re not obligated to take the tax-free element.. thanks again to all who have helped clarify options on this one.
The tfc and residual CM gar annuity seems most suitable way forward.