Product category:
Protection
News Release from: Standard Life Bank | Subject: Protection
Edited by the Insidemoneytalk Editorial
Team on 11 October 2007
Standard Life PBR response - Open Market
Option for annuities
Under the Open Market Option (OMO) an individual can shop around to get the best annuity deal.
The Government has announced a package of measures which they believe will improve the operation of the OMO The changes apply to both personal and occupational pension schemes
This article was originally published on Insidemoneytalk on 23 Feb 2007 at 8.00am (UK)
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The Pensions Advisory Service (TPAS) will set up a web-based tool to guide people through their retirement income options, including choosing the best annuity for them such as a single or joint life annuity.
The FSA will obtain information from the alleged worst performing providers in terms of delays in transferring OMO funds, assess this against its Treating Customers Fairly (TCF) principle and review firms' progress next year.
The Association Of British Insurers (ABI) will re-vamp their existing Statement of Good Practice on Pension Maturities.
The Revenue will clarify with industry that tax legislation allows pension schemes to offer an annuity under an open market option without having to provide a pension themselves.
This will help remove any misunderstanding that might prompt some pension providers who are reluctant to accept annuity business to offer uncompetitive rates.
HM Treasury will report annually at the Pre-Budget Report to assess how well the OMO is operating.
Andrew Tully, Marketing Technical Manager at Standard Life said: 'This whole review has turned into a bit a damp squib.
This was an opportunity to give customers greater transparency when converting their retirement savings into income.
The easiest way to ensure annuity buyers are getting good value is to make sure all insurers publish their rates - including the 90 plus insurers that don't currently do so.
These changes are unlikely to help consumers find the best deal to maximise their retirement income.' If you would like to discuss this in more detail please contact: John Lawson, Head of Pension Policy, 0131 245 7548 Andrew Tully, Marketing Technical Manager, 0131 245 4051 Paul Keeble, PR Manager, 020 7872 4481 / 0771 248 6387 09 October 2007.
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