§ Mr. WyattTo ask the Secretary of State for Work and Pensions if he will take steps to prevent pensions administrators purchasing annuities; and if he will make a statement. [138138]
§ Malcolm WicksIn the vast majority of cases, there is no tax requirement for occupational schemes to purchase an annuity, unlike personal pension plans. Just as the funding of the scheme is stipulated by the scheme rules, so the purchase of annuities is a matter for the administrators. They retain the flexibility of deciding how, when or if this should happen, and do so in consultation with members via the member-nominated trustees.