guaranteed annuity rate

an arrangement in a pension scheme to provide benefits whereby, in defined circumstances and irrespective of the prevailing market rate for annuities when those benefits come into payment, a member is entitled to:

1. (a) an annuity at a minimum specified rate; or
1. (b) benefits equivalent to that annuity at that minimum specified rate, including a minimum guaranteed income under a retirement annuity but excluding, for the avoidance of doubt:
   1. (i) fixed or guaranteed benefits in an individual pension contract that replaced similar safeguarded benefits under a defined benefits pension scheme;
   1. (ii) an entitlement to a lifetime income paying a guaranteed minimum pension that results from contracting out of the State Earnings Related Pension Scheme; and
   1. (iii) a defined benefit minimum that accrues or may accrue at the same time as money-purchase benefits under a pension arrangement.