Norwich Union is launching a new simplified ‘Pension Annuity’ product as part of its pension simplification package. The new product will be available from 6 April 2006 and will offer a simpler, easier approach to writing annuity business.
- New ‘Pension Annuity’ launch 6 April 2006, with quotes available immediately
Norwich Union is launching a new simplified ‘Pension Annuity’ product as part of its pension simplification package. The new product will be available from 6 April 2006 and will offer a simpler, easier approach to writing annuity business.
The new product combines the following three Norwich Union products into one:
- Personal Pension Open Market Option (PPOMO)
- Immediate Annuity Transfer Value (IATV)
- Compulsory Purchase Annuity (CPA).1
The quotation system, which is available with immediate effect, enables financial advisers to obtain competitive quotes for their clients, up to six weeks before A-day, so that they are ready to take advantage of the new product launch.
The new product incorporates all A-day annuity changes and will:
- Accept payments from all registered pension schemes, including contracted out benefits
- Accept pension funds by the open market option and transfer route2
- Offer different payment methods, one of which is to increase payments to protect against inflation3
- Offer a guaranteed option that a lump sum or regular payment will continue to be made, should the client die before the annuity matures
Norwich Union has also created a single application form, covering all its pension annuity products as well as reducing the amount of product literature, making the whole process easier for financial advisers and their clients.
Lawrence Jackson, head of annuities at Norwich Union, said: “The new Pension Annuity streamlines Norwich Union’s pension annuity product range into one simple product, eliminating confusion over different annuity offerings, and reducing literature and forms for the financial adviser. In addition, we believe we are the first company to be able to quote on a post-A-day annuity.“
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Press office contacts:
Cheryl Cox 01904 452617 Out of hours 07800 695275
Rob Pell 01904 452659 Out of hours 07800 699563
David Gwyer 01904 452828 Out of hours 07800 699508
James Evans 01904 452791 Out of hours 07800 699525
Notes to editors
The Pension Annuity will be available from 20 February for customers retiring after 6 April 2006. For customers retiring pre A-day, current annuity products will still continue to be available.
1. The current With-Profit and Impaired annuities will continue to be offered. The With-Profit annuity is to be renamed ‘With Profits Pension Annuity’. There are no changes to either product’s specifications.
2. The open market option is when the annuitant chooses to remain under the rules of their existing pension scheme and buy an annuity from another insurance company. Any tax-free cash will be paid by their existing pension scheme. The fund transfer option is when the annuitant chooses to transfer their full pension fund(s) from their existing scheme(s) or contract(s) into the Norwich Union pension scheme.
3. Payments can be made at a flat rate to guarantee a sum of money, or the option is available to increase payments in line with inflation, to ensure the value of money is not eroded over time.
About Norwich Union
- Norwich Union is the UK's biggest insurer. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS and The Royal Bank of Scotland Group. Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media