Guaranteed Level of Income.
Some pensions which were available to the self-employed or workers not offered a workplace pension were known as Retirement Annuity Contracts. They were also known as Section 226 or S226 pensions.
Some RACs were initially set up with a guaranteed level of income at retirement. These benefits can now be extremely valuable as the rates offered a number of years ago reflect a much higher rate than those available in the market today.
The terms of the guaranteed level of income are sometime restrictive however. They are only available at a certain age and therefore may not apply if early retirement is required.