Norwich Union is making changes to its personal pension plan, Your Pension Select (YPS) which will take effect from 25 September 2006.
- Enhancements to individual personal pension terms
Norwich Union is making changes to its personal pension plan, Your Pension Select (YPS) which will take effect from 25 September 2006.
The changes will include (details in notes to editors):
- Removal of initial charge
- Changes to the large fund discount tiers
- Increase in minimum payments
- Changes to age factors
- Changes to claw back on commission
- New commission options
- Enhanced commission from September 2006 to March 2007*.
Angela MacDonald, director of pensions, Norwich Union said: “Norwich Union is changing Your Pension Select to help advisers differentiate between it and the stakeholder product. Advisers have told us that the initial charge is a barrier to sales and it is hoped that this, along with the fund choice, will be a driver for this market.
“These changes are part of the evolution of the company’s pension strategy which began in October 2005. All new core pension policies** are written under a single scheme. This allows customers to move seamlessly between products, depending on their individual circumstances and, with the help of an adviser, adapt their retirement planning accordingly.”
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* Norwich Union reserves the right to withdraw or change the special offer at any time.
** The stakeholder pension sits outside this arrangement due to regulatory reasons.
Press office contacts:
Cheryl Cox 01904 452791 Out of hours 07800 695275
Louise Soulsby 01904 452617 Out of hours 07800 699526
Notes to editors:
- Removal of Initial Charge
The initial charge that is currently applied on regular payments over two or five years will be removed. - Changes to the Large Fund Discount
| NEW Tiers | Old Tiers | Large Fund Discount |
| Less than Ł20,000 | Less than Ł10,000 | 0.00% |
| Ł20,000 - Ł49,999 | Ł10,000 - Ł19,999 | 0.10% |
| Ł50,000 - Ł99,999 | Ł20,000 - Ł49,999 | 0.15% |
| Ł100,000 and above | Ł50,000 and above | 0.20% |
- Increase to Minimum Payments
| NEW Minimum regular payment | Ł200 per month / Ł2,400 per year*** |
| Old Minimum regular payment | Ł100 per month / Ł1,200 per year |
| NEW Minimum single/transfer payment | Ł10,000 |
| Old Minimum single/transfer payment | Ł5,000 |
*** If a customer is adding regular payments to an existing plan worth more than Ł50,000 the minimum regular payment remains at Ł100 per month or Ł1,200 per year
- Changes to Age Factors
| Age (Years) | Less than 38 | 38-47 | 48-52 | 53-58 | Above 59 |
| NEW Age Factor | 1.00 | 0.94 | 0.83 | 0.60 | 0.34 |
| Old Age Factor (Age year) | 0.92 | 0.84 | 0.67 | 0.34 (53-57) | 0.17 (above 58) |
- Changes to claw back
New claw back terms will apply going forward.
| Year | Old claw back terms | New claw back terms |
| 1 | 75% | 100% |
| 0 | 50% | 80% |
| 3 | 25% | 60% |
| 4 | 0% | 40% |
| 5 | 0% | 0% |
NB These terms also apply to stakeholder pensions that are sold.
- New Commission Options
There will be seven commission types to choose from, each with a range of options to ensure that advisers can select the remuneration package to suit their business needs.
Details regarding commission options on the special offer and post special offer are available upon request. - SPECIAL OFFER – Enhanced Commission
To support the introduction of these changes, enhanced commission will be available on each commission type from launch on 25th September 2006 until 31st March 2007****.
Full details regarding commission options on the special offer and post special offer are available upon request.
**** Norwich Union reserves the right to withdraw or change the special offer at any time.