Chapter 4 - section 7.2 EU Gender Directive

Discussion in 'SA2' started by Viki2010, Sep 15, 2017.

  1. Viki2010

    Viki2010 Member

    On p.24 the core reading makes a reference to annuities with protected rights, as those that would not be impacted by the transition to the unisex pricing.
    What exact products are covered by annuities with protected rights?

    Also, the Core Reading mentions the "proxy rating factors" as factors correlated with age.....what would be an example of such proxy rating factor?
     
    Last edited by a moderator: Sep 15, 2017
  2. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    Hi
    "Protected rights" arise from when there was a right to "contract out" of the UK state 2nd pension (or before that from something called SERPS, the State Earnings Related Pension Scheme). Broadly, certain rules and requirements applied when the part of an individual's pension fund that arose in respect of these "contracted out" contributions was used to buy an annuity. One of these was that insurer's had to use unisex annuity rates for determining a protected rights annuity. Given the Core Reading doesn't expand, shouldn't need any more detail, but a search around "uk pension contracting out" would give more details if you want them :)
    I think the Core Reading mention proxy relating factors in relation to gender? Examples could be occupation, BMI, shoe size(!)
    Best wishes
    Lynn
     
    Viki2010 likes this.

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