Changes to Norwich Union's Your Pension Select

Article date: 4 September 2006

  • Enhancements to individual personal pensionterms

Norwich Union is making changes to its personal pension plan,Your Pension Select (YPS) which will take effect from 25 September2006.

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 PensionSelect to help advisers differentiate between it and thestakeholder product. Advisers have told us that the initial chargeis a barrier to sales and it is hoped that this, along with thefund choice, will be a driver for this market.

“These changes are part of the evolution of thecompany’s pension strategy which began in October 2005. Allnew core pension policies** are written under a single scheme. Thisallows customers to move seamlessly between products, depending ontheir individual circumstances and, with the help of an adviser,adapt their retirement planning accordingly.”

-ends-

* Norwich Union reserves the right to withdraw orchange the special offer at any time.
** The stakeholder pension sits outside this arrangement due toregulatory 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 thatis currently applied on regular payments over twoor five years will be removed.
  • Changes to the Large Fund Discount

NEW Tiers

Old Tiers

Large Fund Discount

Less than £20,000

Less than £10,000

0.00%

£20,000 - £49,999

£10,000 - £19,999

0.10%

£50,000 - £99,999

£20,000 - £49,999

0.15%

£100,000 and above

£50,000 and above

0.20%

  • Increase to Minimum Payments

NEW Minimum regular payment

£200 per month / £2,400 per year***

Old Minimum regular payment

£100 per month / £1,200 per year

NEW Minimum single/transfer payment

£10,000

Old Minimum single/transfer payment

£5,000

*** If a customer is adding regular payments to an existing planworth more than £50,000 the minimum regular payment remains at £100per month or £1,200 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 willapply 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 aresold.

  • New Commission Options
    There will be sevencommission types to choose from, each with a range of options toensure that advisers can select the remuneration package to suittheir business needs.

    Details regarding commission options on the special offer andpost special offer are available uponrequest. 
  • SPECIAL OFFER – EnhancedCommission
    To support the introduction of these changes,enhanced commission will be available on each commission type fromlaunch on 25th September 2006 until 31stMarch 2007****.

    Full details regarding commission options on the special offerand post special offer are available upon request.

    **** Norwich Union reserves the right to withdraw orchange the special offer at any time.
Transitional Arrangements
Quotes for thenew contract will not be available until Monday 25 September.

Any quote produced on the current terms prior to the 25 Septemberwith a commencement date on or after the 24 September will need tobe processed from the 25 September on the new terms.

Any application form received before the 25 September with acommencement date of the 24 September, will be held and processedafter the 24 September.

About Norwich Union
Norwich Union is theUK’s largest insurer. It is a leading provider of life,pensions and investment products and one of the largest financialadviser (FA) providers. FAs provide over 70% of the company'slong-term savings business in the UK.

Norwich Union is the UK’s largest general insurer with amarket share of around 14%, with a focus on insurance forindividuals and small businesses.

Norwich Union’s news releases and a selection of images areavailable from Aviva's internet press centre at www.aviva.com/media

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