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Administration details
The Scheme
The Canada Life Guaranteed Retirement Plan is a Defined Benefit Personal Pension. The legislation governing the policy is contained in Part 4 of Finance Act 2004 and HM Revenue & Customs have confirmed that it is a defined benefit arrangement. The name of the scheme is The Canada Life Guaranteed Retirement Scheme written under a master trust with Canada Life Pension Managers and Trustees Ltd as trustees. Canada Life Limited is the scheme administrator.
Eligibility
- At entry
Minimum age: 45 years old
Maximum age: under 70 years old
- To take benefits
Minimum age attained: 55 years old
Maximum age: under 75 years old
Available for all UK residents
Minimum/Maximum Premiums
The minimum premium is £5,000. Additional top up benefits may be purchased at any time, subject to a minimum of £5,000.
Premiums of up to £1 million will normally be accepted. Amounts greater than this are subject to individual consideration.
Premiums can be made from an individual, an employer and/or as a transfer from another registered pension scheme.
Minimum/Maximum Deferral Period
The income payments can be deferred for a minimum of 5 years (1 year for top ups to an existing policy). The maximum deferral period is 20 years.
Taking benefits from the GRP
Guaranteed Income
Once the selected benefit date is reached, the member will receive a single life guaranteed income that is level, paid monthly in advance and is payable for life.
Or can decide to take a -
Pension Commencement Lump Sum (PCLS)
The member can exchange part of their income for a Pension Commencement Lump Sum (PCLS) previously referred to as tax free cash.
Or they can opt to -
Transfer benefits to a Canada Life Lifetime Annuity to provide the following options.
• Spouse/civil partner/dependants income.
• Guarantee period
• Escalation
• Change of Income frequency
• Pension Commencement Lump Sum (PCLS) under money purchase rules.
The following options are available before Guaranteed Income comes into payment:
Early withdrawal of benefits – The income can be paid earlier than the date originally selected subject to the normal HM Revenue & Customs retirement rules. The income will be recalculated.
Late withdrawal of benefits – The income can be paid at a date later than your originally selected date subject to the normal HM Revenue & Customs retirement rules, but no later than a 75th birthday. The income will be recalculated.
Transfers
The policy can be transferred out to another registered pension scheme before income has commenced, this is subject to the new scheme accepting the monies. Once the income is in payment it cannot be transferred.
Death benefit
Before income commences - A refund of premiums will be made according to the member’s Expression of Wishes.
Whilst taking income – No further benefit will be paid.
Charges
Any charge is reflected in the terms of the guaranteed income paid, this takes into account our expenses for administration, investment management and where, applicable any commission that is paid. Canada Life will not impose any further charges in relation to the policy unless you transfer the policy to another provider.
Commission Available
Up to 6% initial commission is available
New business requirements
• Please ensure that the following items are completed before submitting to Canada Life:
• Application form including a fully completed Money Laundering section
• Cheque (where appropriate)
• Personal Example (please enclose a copy to enable us to process)
• Certified copies of money laundering evidence.
Please read the Adviser Guide for a more comprehensive guide to the Guaranteed Retirement Plan.
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