IN A recent article on retirement annuity rates, we featured a table from Irish Pensions Trust on the rates being offered on a specific day last month. A number of the biggest suppliers of annuities quoted their rates for a £50,000 lump sum.

Mr Ciaran Martin of Scottish Provident, which has recently launched a new series of executive pension plans, has written to us about a feature of the company pensions that may be of interest to anyone considering buying a personal pension.

"Some pension contracts have a built in guaranteed minimum annuity rate whereby the individual is offered a guaranteed minimum rate at their normal retirement age. There is no catch in having this guarantee as the individual may be offered a higher annuity rate from that insurance company or take the open market option, at no penalty, and purchase a higher annuity from another company." Not only does Scottish Provident provide "a guaranteed minimum annuity rate on all pension policies," writes Mr Martin, "but on our Personal Pension contract we actually guarantee the pension, as opposed to the cash fund that will be paid."

Mr Martin makes the point that low interest rates translate into low annuity rates add pension fund investors especially those nearing retirement may wish to raise the question of whether they should opt for an annuity rate guarantee in their policy with their pension company or independent broker.

Meanwhile, Irish Life is offering a variation on this theme for pension investors over age 50. The new product is called the Guaranteed Pension Plan and sets out exactly the size of the annual pension after a 10 year funding period. It is guaranteed to be paid for at least 10 years after retirement every if the pensioner dies immediately after retirement. There is also a guaranteed fund option which can either be taken as a lump sum or be used to buy a pension annuity. This plan is only available by those within 10 years of retirement and takes advantage of the increased funding regulations (20 per cent instead of 15 per cent of net income) for over 555.

Guarantees like these come at a price, and investors are required to accept that the peace of mind you achieve by knowing exactly the size of your pension could at the expense of a higher return from a different, non guaranteed fund.

Potential investors should consult an independent adviser before any pension purchase.