Article date: 22 February 2001
Leading pension provider, Norwich Union is to offer specialterms on its pre-stakeholder product, Your Pension @ Norwich Union,rewarding customers with reduced charges and a further reduction incharges after 5 years. The offer applies to new business writtenfrom 1st March on Your Pension and Your Pension Select @ NorwichUnion and will continue to apply to both products when Your Pensionis relaunched as a full stakeholder product on 6th April. The offeris based on reduced charges according to the size of the fund andrewards those customers who keep their pension running for 5 yearsor longer and whose funds build up to a certain size.
Jerry Barnfield, Director of Pension Development commented: "Wewere the first pension provider to offer tiered charging on ourindividual and group pre-stakeholder product. Now we want tocontinue to enhance our position in the pre-stakeholder market andtake advantage of the run up to the end of the tax year and thecurrent activity in the transfer market. Our offer takes the formof a large fund rebate that will reward customers with a furtherreduction in fund charges after 5 years. Funds in excess of£100,000 will receive the highest level of rebate with an annualfund based charge of only 0.25% *."
IFAs will be able to offer customers a competitive andattractive product that provides a reducing scale of chargesaccording to the size of the fund.
Norwich Union will be making a further announcement of itsStakeholder pension and personal pension propositions from 6thApril.
* Based on Your Pension @ Norwich Union through a fee-basedadviser.
Notes to editors:
- The offer applies to the contract in its entirety, not onlycontributions made during the duration of the offer period, ie.all contributions made during life of the policy will benefit fromthe additional large fund rebate, provided the fund is largeenough.
- Under the current special offer, Your Pension and Your PensionSelect have no annual Fund Charges until the monthly anniversaryfollowing April 2001.
- The offer applies to new policies with a commencement date of1st March but does not apply to increments or switches from anexisting Norwich Union pension plan
- Norwich Union is the UK life and general insurance tradingbrand of holding company, CGNU plc, which was created from themerger between CGU and Norwich Union on 30 May 2000.
- Norwich Union is the UK's largest life and pension company(based on 2000 new premium income) and is the No 1 IFAoffice.
- Your Pension @ Norwich Union is offered by Norwich UnionLife.
- Full written details of Your Pension and Your Pension Selectare available on request.
- The table below shows the reduction in charges based on thefund value after 5 years:
Reduction in charges
|Fund values||First 5 years - large fundrebate||After 5 years with specialoffer|
|Up to £10,000||0%||0%|
|£10,001 up to £19,999||0.05%||0.1%|
|£20,000 up to £49,999||0.1%||0.15%|
|£50,000 up to £99,999||0.2%||0.3%|
|£100,000 or more||0.2%||0.35%|
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