Norwich Union reduces charges to 1% maximum for existing individual and group personal pension customers

Article date: 8 November 2000

Norwich Union has confirmed that from 6th April next year itwill not make any charge in excess of 1% per annum on existingindividual or group personal pensions, putting it in line with theGovernment's stakeholder pensions charging limits. This commitmentapplies to all existing individual and group personal pensionsregardless of whether the contract is with Norwich Union, CGU,Commercial Union, General Accident or Provident Mutual *.

This is in addition to Norwich Union's new range of personalpensions launched this year that have been designed for thestakeholder environment and already benefit from competitivecharging structures i.e. Your Pension, Your Pension Select andDesigner Pension.

Norwich Union is also pleased to announce that in putting thiscommitment in place there will be no change in renewal commission.There is no immediate change in initial commission; however, thisposition will be kept under review.

Jerry Barnfield, Director of Pensions Development at NorwichUnion, commented "Since the announcement of stakeholder pensions,both Norwich Union and CGU have been at the forefront of offeringIFAs solutions to support the sale of new business. Last monthNorwich Union's stakeholder pension scheme became one of the firstto be registered by OPRA and is now available for employers todesignate as their approved stakeholder scheme.

This new commitment is a natural extension of our strategy andis excellent news for our existing personal pension customers. Itshould also offer IFAs significant comfort in knowing theircustomers will receive the advantage of Stakeholder comparablecharging."

Notes to Editors

  1. 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.
  2. Norwich Union is the UK's largest life and pension company(based on 2000 new premium income).

* Investments within the Pension Assured Fund are subject to anadditional charge of 0.25%. Life cover and waiver of contributioncover will continue to be charged for outside the 1% per annumlimit. For the Optimiser Personal Pension the commitment applies tobusiness quoted before 17 November 2000 with a commencement datebefore 1 December 2000. Future loyalty bonuses on Optimiser will betaken into account when determining future charges. Our SelfInvested Personal Pensions and drawdown products are not covered bythis commitment.

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