Early legislation provided for the issue by the Government of Life Assurances and Deferred Annuities. Both of these services had been discontinued by 1929 but the existing policies had to be provided for. The Government Annuities Investment Fund (GAIF) was an amalgamation of two separate funds covering the earlier schemes. The Fund held assets that were used to meet the payments due for the maturing assurances and deferred annuities. When the assets were exhausted in 1936 the Fund continued to operate by drawing cash from the Consolidated Fund as required.
The final payment in respect of deferred annuities was made in 1990 and there are now less than 200 insurance contracts. These are administered by National Savings and Investments NS&I, who pay out the insurance claims and apply annually to CRND for reimbursement of the sums involved. Management costs incurred by NS&I and CRND are also paid out of the Fund each year.
The annual report and accounts of GAIF can be found here.