The information on this page is only relevant to trustees of occupational pension schemes who are planholders with qualifying with profit investments in the Scottish Life Fund.
During March and April 2021, we’re writing to planholders with qualifying with profits investments in the Scottish Life Fund asking for their feedback on our proposal.
This page tells you about our proposal to distribute more of the Estate of the Scottish Life Fund sooner than would otherwise be the case. This is part of our goal to simplify and modernise the way we do things for our longstanding customers.
We’ll only go ahead with our proposal if planholders like you are supportive and the High Court gives us the go ahead.
You can download a copy of the information we’ve mailed to planholders like you by clicking on the links in the 'Mailing pack' section.
If you need any help after reading the information on this page, you can find our contact details here.
This is the information we have sent to planholders who are Trustees of an occupational pension scheme and are affected by the proposal.
The pack includes:
- Cover letter [PDF, 0.3MB] summarising our proposal, what it means for you, how you go about telling us what you think and what happens next
- Your guide to our proposal [PDF, 1MB] - This booklet explains everything you need to know at this stage about our proposal. It includes a timeline and glossary of terms.
- Feedback form [PDF, 1MB] - This form is for information only. Please complete the form provided in the information pack we sent you. Alternatively, use our online feedback form.
We sent you lots of reading material in your mailing pack. Here we’ve gathered some key documents that we refer to in the pack that you may find helpful if you need more information. We’ll add to this section with more information later in the year if our proposal goes ahead.
If you have any questions or would like a copy of this document in a different format, such as large print, please call us on the number provided at the bottom of the page.
Royal London maintains a Principles and Practices of Financial Management (PPFM) document for each of its With Profits Funds. The PPFM is a document that outlines how we manage a With Profits Fund. With Profits plans invested in the Scottish Life Fund are managed as part of the Scottish Life PPFM. This will be updated if and when our proposal goes ahead. This is the current PPFM that covers your plan.
Update on 19 March
The confirmed date for the Convening Hearing is 15 July 2021. This will take place at the High Court of Justice in England and Wales at the Rolls Building, Fetter Lane, London, EC4A 1NL.
Tell us about a bereavement
To make things easier at what is a difficult time, you can notify us about the person who has died by completing our notification of death form.
What is the mailing you recently sent me all about?
We want to make changes to how we manage the with profits investments in the Scottish Life Fund.
These changes would allow us to increase your plan's current value and give you more certainty over the amount available when your member(s) take their retirement savings.
Before we can make the changes, we’re asking planholders who would be affected to provide us with feedback on our proposal.
What should I do if I need help understanding the proposal?
We understand that some of this information is technical. Please read your information pack carefully.
If you still need help, please feel free to call us on 0345 646 1016 (or +44 1625 718588 if you’re calling from outside the UK) between 8am and 6pm Monday to Friday (excluding bank holidays).
We can’t give you financial advice, but we can explain our proposal and answer any questions as best as we can.
If you don’t have a financial adviser, you can find a professional in your area. Advisers may charge for their services, but they should agree any costs with you up front.
Remember, we’ll send you more information on our proposal later this year if planholders like you are supportive.
Why is Royal London doing this?
Our proposal would allow us to give planholders like you a known distribution from the Estate. This means you’ll have more certainty over the amount available when your member(s) take their retirement savings. We’re making our proposal now so as many planholders like you as possible can benefit from it.
Our proposal is also part of our plan to simplify and modernise the way we do things for the benefit of our longstanding customers. Our proposal will help us become a more efficient business.
When would this proposal take effect?
If planholders like you are supportive of our proposal and the High Court gives us the go ahead, we’ll write to you again later this year with a formal offer and ask you to vote on it.
If planholders like you vote in favour of the formal offer, we’ll go back to the High Court and ask for its final approval. If we get this approval, we expect the earliest our proposal could take effect would be 31 December 2021.
How do I know what you're doing is fair?
We’d use a court approved process called a Scheme of Arrangement to make our formal offer to you. As part of that process, we’re taking the following steps to make sure our proposal is fair:
- Our With Profits Actuary and Chief Actuary will prepare reports which will be provided to the High Court
- We’ll keep our Regulators informed
- An Independent Expert will review the scheme very carefully
- Qualifying With Profits Planholders will consider and vote on the Scheme
- The Scheme must be approved by the High Court
Is my plan safe?
Yes. Royal London is the largest mutual life, pensions and investment company in the UK and all with profits funds we manage are in a healthy financial position. Our proposal involves moving your plan into the Royal London Open Fund. This is a much larger, more varied fund than the Scottish Life Fund.
How do I know this isn't a scam?
We understand that everyone needs to be cautious these days. If the name Royal London doesn’t ring any bells, we’re the largest mutual life, pensions and investment company in the UK. We’ve been looking after your plan since it transferred to us from the Scottish Life Assurance Company in 2001. So you feel safe that we’re not trying to scam you, you can find us registered with the Financial Conduct Authority.
Will there be any change to how my plan is administered if the proposal goes ahead?
No. We’ll continue to administer your plan in the same way as we currently do.
What happens if I don't provide any feedback?
We encourage you to provide feedback on our proposal because this is an opportunity to have a say on a proposal that would affect your plan. If you don't provide us with your feedback but planholders who do respond to us indicate that they are interested in our proposal, we’ll write to you again later this year with a formal offer.
When would your proposal no longer apply to my plan?
Our proposal only impacts your With Profits investments in the Scottish Life Fund committed to before 11 September 2000. We sometimes call these ‘With Profits 1’ (WP1) investments. Our proposal will no longer apply to you if no part of your plan is invested in ‘With Profits 1’ immediately before our proposal is implemented.
What will happen if the proposal doesn't go ahead?
If our proposal doesn’t go ahead, we won't make these changes. The amount that we’ll be able to increase your plan value by from the Estate will remain exposed to future risks and could be higher or lower than under our proposal.
Will the proposal change the UK tax treatment of my plan?
We are not aware of any additional tax impacts, however we can’t advise you on tax matters. If you’re in any doubt about what to do next you must consult your pension scheme’s legal or financial advisers.
I’ve changed my contact details. How can I notify Royal London?
Please complete the update your details form or give us a call on 0345 646 1016 (or 01625 718588 if you're calling from outside the UK) between 8am and 6pm Monday to Friday (excluding bank holidays). There may be certain documents we need to update your details.
Do I need to discuss this with my scheme members?
You may wish to share the information pack with them, but you don't need to. You can direct them to this webpage to access the documents in the mailing pack section.
The trustee has changed for this plan. How can I notify Royal London?
Please give us a call on 0345 646 1016 (or +441625 718588 if you're calling from outside the UK) to change your contact details. There may be certain documents we need to update your details.
There are multiple trustees for my pension scheme. Do we all need to provide separate feedback on the proposal?
No, only one Feedback Form can be completed providing the joint feedback of the trustees.
Can I receive the information pack in an alternative format?
We’re happy to provide the information pack in a different format, such as Braille, large print or audio. Just call us on 0345 646 1016 (or +441625 718588 if you’re calling from outside the UK).
Need further help?
If you're calling from outside the UK you can phone us on +44 1625 718 588.
Our customer services team are available between 8am and 6pm Monday to Friday (excluding bank holidays).
Alternatively you can write to us at:
Royal London House