A closer look at our proposal
A closer look at our proposal
We recently wrote to you about a proposal we’re considering making to Royal London pension planholders like you.
We recently wrote to you about a proposal we’re considering making to Royal London pension planholders like you. We want to offer you a choice - to keep a substantial benefit under your plan, or exchange it in return for an immediate and substantial increase to your retirement savings.
What's this all about?
We’ve created this short animation to help you understand.
GUIDE GUIDE GUIDE
We understand that you might have some questions about what we’d like to offer. So here we answer a few of the most important questions. You can find more questions in the key documents at the bottom of the page.
If our proposal is approved by GAR planholders and
by the court, and you don’t opt-out, we would remove the substantial benefit of your GAR in exchange for a substantial increase to your retirement savings, immediately after our proposal is implemented.
We’ll take into account a number of factors in deciding what increases to offer in exchange for your GAR, including life expectancy and the current high value of the GAR (which has been brought about by the current low interest rates). We also need to be fair to our other planholders who don’t have GARs. An independent actuary is reviewing our proposals and he’ll provide an opinion on the fairness of the offer for the High Court in August.
If we go ahead, we’ll send you a personalised illustration later in the year that sets out what we expect the offer would mean for you. The offer will depend on market conditions at the time.
Yes, you would lose the value of the GAR if you transfer your retirement savings to another pension arrangement and our proposal goes ahead after that.
The changes are not expected to take place before
31 December 2017. If you’re considering taking your plan benefits soon, you should consult a financial adviser. You might want to consider delaying any transfer of your retirement savings until we know whether the offer will go ahead or not, and if it does, until the results of the vote are known.
If the offer is approved by GAR planholders and by
the court, our suggested change would be reflected
in the retirement savings that you could transfer to another insurance company as long as you have not opted out.
Yes. For some planholders their GAR only applies from age 60 so the proposal could unlock the current value of the GAR earlier than they could just now.
If the change is approved by GAR planholders and by the court, and you don’t opt out, you can benefit from the increased fund value from your minimum retirement age. This is age 55 for most people.
If you don’t opt out this would increase the benefits your beneficiaries would receive if you die before you retire. If our offer is approved by GAR planholders and by the court, the amount we would pay to your beneficiaries will increase because your retirement savings will have increased.
Your key documents
- Cover Letter
- Proposal Guide
- Legal document
If you still have questions please contact us on XXXX or you can email us.