Article date: 23 February 2006
- 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 pensionsimplification package. The new product will be available from 6April 2006 and will offer a simpler, easier approach to writingannuity business.
The new product combines the followingthree 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 availablewith immediate effect, enables financial advisers to obtaincompetitive quotes for their clients, up to six weeks before A-day,so that they are ready to take advantage of the new productlaunch.
The new product incorporates all A-dayannuity changes and will:
- Accept payments from all registered pension schemes, includingcontracted out benefits
- Accept pension funds by the open market option and transferroute2
- Offer different payment methods, one of which is to increasepayments to protect against inflation3
- Offer a guaranteed option that a lump sum or regular paymentwill continue to be made, should the client die before theannuity matures
Norwich Union has also created a singleapplication form, covering all its pension annuity products as wellas reducing the amount of product literature, making the wholeprocess easier for financial advisers and their clients.
Lawrence Jackson, head of annuities atNorwich Union, said: “The new Pension Annuity streamlinesNorwich Union’s pension annuity product range into one simpleproduct, eliminating confusion over different annuity offerings,and reducing literature and forms for the financial adviser. Inaddition, we believe we are the first company to be able to quoteon a post-A-day annuity.“
Press office contacts:
Cheryl Cox 01904452617 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 forcustomers retiring after 6 April 2006. For customers retiring preA-day, current annuity products will still continue to beavailable.
1. The current With-Profit and Impaired annuities will continueto be offered. The With-Profit annuity is to be renamed ‘WithProfits Pension Annuity’. There are no changes to eitherproduct’s specifications.
2. The open market option is when the annuitant choosesto remain under the rules of their existing pension scheme and buyan annuity from another insurance company. Any tax-free cash willbe paid by their existing pension scheme. The fund transferoption is when the annuitant chooses to transfer their fullpension fund(s) from their existing scheme(s) or contract(s) intothe Norwich Union pension scheme.
3. Payments can be made at a flat rate to guarantee a sum ofmoney, or the option is available to increase payments in line withinflation, to ensure the value of money is not eroded overtime.
About Norwich Union
- Norwich Union is the UK's biggest insurer. It is a leadingprovider of life, pensions and investment products and one ofthe largest Financial Adviser (FA) providers. FAs provide over70% of the company's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including CIS and The Royal Bankof Scotland Group. Norwich Union’s news releases and aselection of images are available from Aviva's internet presscentre at www.aviva.com/media