European Court Ruling on Insurance Contracts
On 1 March 2011, the European Court of Justice ruled that it was illegal for insurance companies to use different premium ratings for men and women.
This has a major impact on annuity rates (the rates used to buy an income from a pension fund at retirement). It is likely that Men, who have a lower life expectancy than Women, may see a significant reduction in the income from any annuities purchased in the future.
This will affect M Plan members and any Enhanced M Plan or Hybrid M Plan members wishing to purchase an annuity with their fund.
The ruling appears to affect new annuity contracts set up on or after 21 December 2012 but insurance companies are able to introduce these changes prior to this date. This will not impact annuities that are already being paid.
To view the judgement click here
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Last Updated: 10/05/2011
