Pension plans
Base plan details are available here. Always refer to the plan terms and conditions for full plan details.
The table below sets out the minimum increase and contribution level for the range of Zurich pension plans. Where a plan is being reinstated and the original contribution was lower than the levels shown below the contributions can be reinstated at the original level but no lower.
| Plan type | Product code | Minimum contribution | Minimum increase | Singles |
|---|---|---|---|---|
| GRP* | AK | £10.00 | n/a | £100 |
| CK | £15.00 | £200 | ||
| CKA | £20.00 | £300 | ||
| Self employed life plan* | CA2 | £12.00 | n/a | n/a |
| PRP* | DK, DKA | £36.00 | £36.00 | £2,000 |
| PPP | DL | £36.00 | £36.00 | £2,000 |
| AVC | VA, VB | £36.00 | £36.00 | £2,000 |
| EPP | BC, BD | £500.00 | £50.00 | £2,500 |
| ERP | BE, BEA BH | £100.00 | £50.00 | £2,500 |
| GERP | BG, BGA | £180.00 plan £36.00 member |
£180.00 plan £36.00 member |
£2,500 |
| PLP Standalone | DL | £12.00 | £12.00 | n/a |
| TIP | £10,000 | £5,000 | £5,000 | |
| AVCPA | F01 | £40.00 | £25.00 | £2,000 |
| EPA | E01 | £100.00 | £50.00 | £5,000 for initial £2,500 for any subsequent |
| PPA | P01 | £40.00 | £25.00 | £2,000 |
| APP standalone life cover | £16.00 | £12.00 | n/a | |
| Income Withdrawal Account | P01 | £75,000 | n/a | n/a |
| IRP | RPP | £75.00 | £25.00 | £5,000 SPO £2,500 additional |
| IRP from 26th April 2004 | RPP | £300.00 | £25.00 | £5,000 SPO £2,500 additional |
| RSP | RPX | £100.00 | £25.00 | £2,000 |
| FSAVCRP | RPF | £75.00 | £25.00 | £5,000 SPO £2,500 additional |
| ERP | RPE | £200.00; | £75.00 | £15,000 SPO £6,000 additional |
| GIRP 5 or more employees | GRP | £75.00 | £25.00 | £5,000 SPO £2,500 additional |
| GSP | £20.00 | £20.00; | £20.00 |
* Contributions to these plans are always paid gross and any tax relief reclaimed via the individuals self assessment tax return.
Available
1 January 1995 to 23 October 2000
Plan Type
A unit-linked Pension Plan designed to provide retirement benefits and/or life assurance protection. The plan had three accounts:
- a Personal Pension account
- a Free Standing Additional Voluntary Contribution (FSAVC) Pension account
- an Executive Pension account
which could be used according to circumstances.
The plan is a Registered Pension Scheme (RPS) since 6th April 2006.
Unit Allocation
Contribution Payment Term (CPT)
Regular contributions are payable for a period of time chosen by the client. This period is called the CPT.
Reduced Allocation Period (RAP)
The RAP applies for 1 month for each year of the CPT to a maximum of 30 months.
Allocation Rates
| Regular contributions | % |
|---|---|
| During RAP | 35% |
| After RAP | 105% |
| Single Contributions and transfer values | |
| Less than £100,000 | 100% |
| £100,000 or more | 101% |
| Protected rights | 100% |
Charges
| Bid/Offer spread | 5% |
|---|---|
| Annual management | 1% a year |
| Charge | 105% |
| Single contributions and transfer values | This is reinvested during the CPT. At the end of the CPT, if the fund remains invested, the 1% becomes payable. On single contributions, transfer values and protected rights contributions, the AMC is not reinvested |
| Indexed policy charge | A monthly deduction to cover the expense of running the plan. This deduction will normally increase each year on 1 January |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge |
| Fund switch charge | We don’t currently make a charge for switching funds. If in future we decide to charge, we’ll tell you |
| Single Premium/ Transfer Value charge | There is an administration charge for single premiums and transfer values paid into the plan |
Investment Options
A range of funds are available to choose from.
Optional Benefits
Increases
Increases, subject to a minimum amount, may be made at any time.
Indexation
Contributions can be increased automatically at renewal in line with Average Weekly Earnings (AWE), or by 5% or 10% per annum.
Waiver of Contribution (WOC)
Only available on the Personal Pension Account.
If the client is totally disabled through sickness or accident and unable to work for more than the deferment period (3 or 6 months), contributions are waived but units will continue to be credited to the plan.
Stopping Contributions
Contributions can be stopped and re-started at any time without penalty. Deductions for the Indexed Policy Charge are only taken during the CPT and will continue to be deducted even if no contributions are being paid.
Life Cover
It was possible to include Life Cover as an additional benefit or to set it up on a stand alone basis. The Life Cover is a term assurance contract (covered by pensions legislation). The CPT was selected for the Life Cover at the time the benefit was set up. The CPT for the Life Cover did not have to be for the same period as the CPT for the investment contributions.
If the Life Cover lapses it cannot be re-instated.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75.
Death Benefits
The automatic death benefit on the Adaptable Pension Plan depends on whether the client dies during the CPT or outside of the CPT.
During the CPT the automatic death benefit is calculated by enhancing the existing fund value so that the death benefit payable would be as if contributions had been fully allocated to units during the RAP. This enhancement gradually reduces so that by the end of the CPT the death benefit equals the bid value of the fund.
Outside of the CPT the automatic death benefit is the bid value of the units.
Available
VA: 26 October 1987 to 30 June 1988
VB: 1 July 1988 to 31 December 1994
Plan Type
A Free Standing Additional Voluntary Contribution (FSAVC) Pension Plan designed to provide retirement benefits. A Registered Pension Scheme (RPS) since 6th April 2006.
Unit Allocation
Regular Contributions
Allocated to Capital Units for the first two years and the first two years of any increase. (For plans with a declaration date on or after 6 September 1991 where contributions are not maintained during the first two years, or the first two years of an increase, reinstated contributions will continue to be allocated to Capital Units until the two year period is complete).
Regular contributions are allocated to Accumulation Units thereafter.
Capital Units are converted to an equivalent value of Accumulation Units at SRA (or age 65 if earlier).
Single Contributions and Transfer Values
Allocated to Accumulation Units.
Allocation Rates
| Regular Contributions | % |
|---|---|
| More than 10 years before SRA | 100% |
| Within 10 years of SRA | 105% |
| After SRA | 100% |
| Single Contributions | |
| £2,000 or more | 96% |
| £1,000 to £1,999 | 95% |
| £999 or below | 94% |
Charges
| Bid/Offer spread | 5% |
|---|---|
| Capital Unit Charge | 3.5% a year |
| Annual Management Charge | 0.75% a year (which is reinvested on Accumulation Units) |
| Indexed Policy Charge | A monthly deduction to cover the expense of running the plan. This deduction will normally increase each year on 1 January |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge |
| Fund switch charge | There is an administration charge for switching funds |
Investment Options
A range of funds are available to choose from.
Optional Benefits
Increases
Increases may be made at any time. Increases below the minimum amount will be subject to a minimum increase charge.
Indexation
Contributions can be increased automatically at renewal in line with Average Weekly Earnings (AWE).
Additional Indexation
Indexation can be applied to a higher notional contribution level so that contributions increase at a rate higher than AWE.
Full Return of Fund (FROF)
In the event of death before taking benefits, the bid value of the Capital Units will be returned.
Stopping Contributions
Contributions can be stopped and re-started at any time without penalty. Deductions for the Indexed Policy Charge and FROF will continue even if no contributions are being paid.
Personal Life Plan
It was possible to include Life Cover to provide a guaranteed sum assured to be paid on death. If the Life Cover lapses it cannot be re-instated.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75. If benefits are taken prior to SRA, a Capital Unit reduction is applied depending on the unexpired term of the plan.
Before 6 April 2006 (A Day), tax-free cash sums were not available from these plans so benefits could only be taken as a pension only.
Death Benefits
In the event of death before taking benefits, the bid value of the Accumulation Units are payable as a lump sum.
If FROF was added to the plan, the bid value of the Capital Units are also payable as a lump sum.
Available:
23.10.2000 to 31.01.2004
Plan Type
A Free Standing Additional Voluntary Contributions (FSAVC) Pension Plan designed to provide retirement benefits. A Registered Pension Scheme (RPS) since 6 April 2006.
Allocation rates
Regular and Single Contributions - 100%
Charges
| Annual Management Charge | 1% a year |
|---|---|
| Monthly expense deduction | a monthly deduction to cover the expense of running the plan. This deduction will normally increase each year on 1 January |
| Fund expenses | deductions from each fund, to pay for the day to day activities of managing each fund |
| Additional annual management charge | the fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge |
Investment Options
A range of funds are available to choose from.
Optional Benefits
Increases
Increases may be made at any time.
Indexation
Contributions can be increased automatically at renewal at a rate between 1% and 10%.
Stopping Contributions
Contributions can be stopped and re-started at any time without penalty. Deductions for the Monthly Expense Deduction will continue even if no contributions are being paid.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75.
Death Benefits
In the event of death before taking benefits, the automatic death benefit is the value of the individual's fund at the date of death.
Available
BC Gen 1: 1 January 1974 to 31 December 1975
BC Gen 2/3: 1 January 1975 to 31 December 1976
BD: 1 January 1977 to 31 December 1983
Plan Type
An Occupational Pension Plan designed for Employers to provide retirement benefits for its employees. A Registered Pension Scheme (RPS) since 6th April 2006.
Regular Contributions
Allocated to Capital Units for the first two years initial contributions.
Increases allocated to Capital Units for first year for BC Plans and for first two years for BD Plans.
Regular contributions are allocated to Accumulation Units thereafter.
Capital Units are converted to an equivalent value of Accumulation Units at SRA on BC Gen1 Plans.
Single Contributions and Transfer Values
Allocated to Accumulation Units.
Allocation Rates
| Regular Contributions | % |
|---|---|
| Up to SRA | |
| 10 years or more to SRA | 100% |
| 9 years to SRA | 99% |
| 8 years to SRA | 98% |
| 7 years to SRA | 97% |
| 6 years to SRA | 96% |
| 5 years or less to SRA | 95% |
| After SRA | |
| BC Gen 1 | 100% |
| BC Gen 2/3 and BD | 95% |
| Single contributions | |
| BC Gen 1 | 100% |
| BC Gen 2/3 | |
| 10 years or more to SRA | 100% |
| 9 years to SRA | 99% |
| 8 years to SRA | 98% |
| 7 years to SRA | 97% |
| 6 years to SRA | 96% |
| 5 years to SRA | 95% |
| After SRA | 95% |
Charges
| Bid/Offer Spread | 5% |
|---|---|
| Capital unit charge | 3.5% a year |
| Annual management charge | 3/8% a year for plans issued up to 31 December 1974 0.75% a year for plans issued from 1 January 1975 onwards, reducing to 3/8% a year after 15 years contributions have been continuously paid |
| Monthly service charge | 3% of total monthly premium up to a maximum of £9 a month |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge | Fund switch charge | There is an administration charge for switching funds |
Investment Options
A range of funds are available to choose from.
Increases
Increases may be made at any time. Increases below the minimum amount will be subject to a minimum increase charge.
Stopping Contributions
Contributions can be stopped and re-started at any time. On BD plans, if the contribution is stopped within 2 years of an increase a Capital Unit reduction is applied.
Death in Service Sum Assured
It was possible to include a death in service sum assured to SRA to provide a lump sum plus a dependant’s death in service pension.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75. If benefits are taken prior to SRA, a Capital Unit reduction is applied depending on the unexpired term of the plan.
Death Benefits
In the event of death before taking benefits, the bid value of the Accumulation Units are payable as a lump sum.
Available:
BE: 1 January 1984 to 27 July 1987
BEA: 28 July 1987 to 30 June 1988
BH: 1 July 1988 to 31 December 1994
Plan Type
An Occupational Pension Plan designed for Employers to provide retirement benefits for its employees. A Registered Pension Scheme (RPS) since 6th April 2006.
Regular Contributions
Allocated to Capital Units for the first two years and the first two years of any increase. (For plans with a declaration date on or after 6 September 1991 where contributions are not maintained during the first two years, or the first two years of an increase, reinstated contributions will continue to be allocated to Capital Units until the two year period is complete).
Regular contributions are allocated to Accumulation Units thereafter.
Capital Units are converted to an equivalent value of Accumulation Units at SRA (or age 65 if earlier).
Single Contributions and Transfer Values
Allocated to Accumulation Units.
Allocation Rates
| Regular Contributions | % |
|---|---|
| 10 years or more to SRA | 100% |
| Within 10 years of SRA | 105% |
| After SRA | 100% |
| Single contributions | |
| £2,000 or more | 96% |
| £1,000 to £1,999 | 95% |
| £999 or below | 94% |
Charges
| Bid/Offer Spread | 5% |
|---|---|
| Capital unit charge | 3.5% a year |
| Annual management charge | 0.75% a year (which is reinvested on Accumulation Units) |
| Indexed policy charge | A monthly deduction to cover the expense of running the plan. This deduction will normally increase each year on 1 January |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge | Fund switch charge | There is an administration charge for switching funds |
Investment Options
A range of funds are available to choose from.
Increases
Increases may be made at any time. Increases below the minimum amount will be subject to a minimum increase charge.
Indexation
Contributions can be increased automatically at renewal in line with the Average Weekly Earnings (AWE).
Additional Indexation
Indexation can be applied to a higher notional contribution level so that contributions increase at a rate higher than AWE.
Contribution Protection Benefit (CPB) - BE/BEA Plans Only
In the event of death before taking benefits, the contributions used to purchase Capital Units will be returned.
Full Return of Fund (FROF) - BH Plans Only
In the event of death before taking benefits, the bid value of the Capital Units will be returned.
Stopping Contributions
Contributions can be stopped and re-started at any time without penalty. Deductions for the Indexed Policy Charge and CPB will continue even if no contributions are being paid.
Death in Service Sum Assured
It was possible to include a death in service sum assured to SRA to provide a lump sum plus a dependant’s death in service pension.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75. If benefits are taken prior to SRA, a Capital Unit reduction is applied depending on the unexpired term of the plan.
Death Benefits
In the event of death before taking benefits, the bid value of the Accumulation Units are payable as a lump sum.
If CPB (BE/BEA Plans) was added to the plan, the contributions used to purchase Capital Units are also payable as a lump sum.
If FROF (BH Plans) was added to the plan, the bid value of the Capital Units are also payable as a lump sum.
Available: 23.10.2000 to 31.01.2004
Plan Type
An Occupational Pension Plan designed for employers to provide retirement benefits for its employees. A Registered Pension Scheme (RPS) since 6 April 2006.
Allocation rates
Regular and Single Contributions - 100%
Charges
| Annual management charge | 1% a year |
|---|---|
| Monthly expense deduction | A monthly deduction to cover the expense of running the plan. This deduction will normally increase each year on 1 January |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge |
Investment Options
A range of funds are available to choose from.
Increases
Increases may be made at any time.
Indexation
Contributions can be increased automatically at renewal at a rate between 1% and 10%.
Stopping Contributions
Contributions can be stopped and re-started at any time without penalty. Deductions for the Monthly Expense Deduction will continue even if no contributions are being paid.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75.
Death Benefits
In the event of death before taking benefits, the automatic death benefit is the value of the individual's fund at the date of death.
Plan Type
A Self-Invested Personal Pension Plan administered by James Hay Pension Trustees Ltd (JHPT). The Plan accepts lump sum contributions and provides Unsecured Pension (USP) benefits:
- Pre-Retirement
- Post-Retirement
Available:
AK: 01.04.1971 to 31.12.1976
CK: 01.01.1977 to 31.08.1980
CKA: 01.09.1980 to 31.12.1984
Plan Type
A Retirement Annuity Contract designed to provide retirement benefits. A Registered Pension Scheme (RPS) since 6 April 2006.
Unit Allocation
Regular contributions - Allocated to Capital Units for the first two years initial contributions. Regular contributions are allocated to Accumulation Units thereafter. Capital Units are converted to an equivalent value of Accumulation Units at SRA on AK Plans.
Single Contributions- Allocated to Accumulation Units.
Allocation Rates
Regular Contributions
| AK | 100% |
|---|---|
| CK/CKA: Up to SRA | |
| 10 years or more to SRA | 100% |
| 9 years to SRA | 99% |
| 8 years to SRA | 98% |
| 7 years to SRA | 97% |
| 6 years to SRA | 96% |
| 5 years to SRA | 95% |
| After SRA | 95% |
Single Contributions
| AK | 100% |
|---|---|
| CK | 95% |
| CKA: | |
| 10 years or more to SRA | 100% |
| 9 years to SRA | 99% |
| 8 years to SRA | 98% |
| 7 years to SRA | 97% |
| 6 years to SRA | 96% |
| 5 years to SRA | 95% |
| After SRA | 95% |
Charges
| Bid/Offer Spread | 5% |
|---|---|
| Capital unit charge | 3.5% a year |
| Annual management charge | 3/8% a year for plans issued up to 31.12.1974 0.75% a year for plans issued from 1.1.1975 onwards. For CK/CKA plans the AMC is reduced to 3/8% a year after 15 years contributions have been continuously paid. |
| Monthly service charge | 3% of total monthly premium on plans issued after 1 January 1975 |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund. |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge. |
| Fund switch charge | There is an administration charge for switching funds. |
Investment Options
A range of funds are available to choose from but only one fund can be invested in at a time.
Optional Benefits
Increases - Contributions cannot be increased above the commencement level.
Stopping Contributions - AK and CK - Contributions can be stopped at any time without penalty but to reinstate the plan all missed contributions must be paid back. CKA – Contributions can be stopped at any time without penalty but to reinstate the plan only up to one years contributions can be missed between renewal dates and this option can only be used once. On CK and CKA plans, if contributions had stopped after less than 1 years contributions had been paid the plan would have lapsed. If less than 2 years contributions had been paid the Capital Units would have been reduced.
Waiver of Premium - If the client is totally disabled through sickness or accident and unable to work for the deferment period (3 or 6 months), contributions are waived but units will continue to be credited to the plan.
Maturity Bonus (AK Plans Only) - AK Plans issued after 1.10.1972 receive a bonus of 2% of Accumulation Units at the end of the term subject to regular contributions being maintained to age 60 or when benefits taken if later.
Guaranteed Mortality Rates - AK plans taken out prior to 1 January 1975 have annuity rates based on a guaranteed mortality basis. The yield rates used come from a pre-defined source which in turn affects the annuity available.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75. If benefits are taken prior to SRA, a Capital Unit reduction is applied depending on the unexpired term of the plan.
Death Benefits
In the event of death before taking benefits, the full value of the units are payable as a lump sum.
Available
1 January 1995 to 17 February 2003
Plan Type
A Personal Pension Plan designed solely to provide Drawdown Pension benefits. The plan does not accept regular or single contributions or Protected Rights.
The plan is a Registered Pension Scheme (RPS) since 6th April 2006.
Age Range
Must commence by 67th birthday
Minimum term 3 years
Allocation Rates
| Internal funds (from existing Allied Dunbar Pension Plans) | 103% |
|---|---|
| External funds: | |
| Less than £100,000 | 97.75% |
| £100,000 or more | 98.75% |
Charges
| Bid/Offer Spread | 5% |
|---|---|
| Annual management charge | 1% a year |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | Thef und management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge |
| Fund switch charge | There is an administration charge for switching funds |
Investment Options
A range of funds are available to choose from.
Withdrawals
Income payments can be made monthly (except where funds are invested in Guaranteed funds), quarterly, half-yearly or yearly.
Available:
23.10.2000 to 31.01.2004
Plan Type
A Personal Pension Plan designed to provide retirement benefits. A Registered Pension Scheme (RPS) since 6 April 2006.
Allocation Rates
Regular and Single Contributions: 100%
Charges
| Annual managementcharge | 1% a year |
|---|---|
| Monthly expense deduction | A monthly deduction to cover the expense of running the plan. This deduction will normally increase each year on 1 January |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge |
Investment Options
A range of funds are available to choose from.
Optional Benefits
Increases - may be made at any time.
Indexation - Contributions can be increased automatically at renewal at a rate between 1% and 10%.
Waiver of Contribution (WOC) - If the client is totally disabled through sickness or accident and unable to work for more than the deferment period (3 months), contributions are waived but units will continue to be credited to the plan.
Stopping Contributions - Contributions can be stopped and re-started at any time without penalty. Deductions for the Monthly Expense Deduction will continue even if no contributions are being paid.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75.
Death Benefits
In the event of death before taking benefits, the automatic death benefit is the value of the individual’s fund at the date of death.
Available
DK: 1 January 1984 to 31 August 1987
DKA: 1 September 1987 to 30 June 1988
Plan Type
A Retirement Annuity Contract designed to provide retirement benefits. A Registered Pension Scheme (RPS) since 6th April 2006.
Regular Contributions
Allocated to Capital Units for the first two years and the first two years of any increase.
Regular contributions are allocated to Accumulation Units thereafter.
Capital Units are converted to an equivalent value of Accumulation Units at SRA (or age 65 if earlier).
Single Contributions and Transfer Values
Allocated to Accumulation Units.
Allocation Rates
| Regular Contributions | ||
|---|---|---|
| More than 10 years before SRA | 100% | |
| Within 10 years of SRA | 105% | |
| After SRA | 100% | |
| Single Contributions | DK plans | DKA plans |
| £2,000 or more | 97% | 96% |
| £1,000 to £1,999 | 96% | 95% |
| £999 or below | 95% | 94% |
Charges
| Bid/Offer Spread | 5% |
|---|---|
| Capital unit charge | 3.5% a year |
| Annual management charge | 0.75% a year (which is reinvested on Accumulation Units) |
| Indexed policy charge | A monthly deduction to cover the expense of running the plan. This deduction will normally increase each year on 1 January |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge. |
| Fund switch charge | There is an administration charge for switching funds. |
Investment Options
A range of funds are available to choose from.
Optional Benefits
Increases - may be made at any time. Increases below the minimum amount will be subject to a minimum increase charge.
Indexation - contributions can be increased automatically at renewal in line with the Average Weekly Earnings (AWE).
Additional Indexation - Indexation can be applied to a higher notional contribution level so that contributions increase at a rate higher than AWE.
Contribution Protection Benefit (CPB) - In the event of death before taking benefits, the contributions used to purchase Capital Units will be returned.
Waiver of Contribution (WOC) - If the client is totally disabled through sickness or accident and unable to work for more than the deferment period (3 or 6 months), contributions are waived but units will continue to be credited to the plan.
Stopping Contributions
Contributions can be stopped and re-started at any time without penalty. Deductions for the Indexed Policy Charge and CPB will continue even if no contributions are being paid.
Personal Life Plan
It was possible to include Life Cover to provide a guaranteed sum assured to be paid on death. If the Life Cover lapses it cannot be re-instated.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75. If benefits are taken prior to SRA, a Capital Unit reduction is applied depending on the unexpired term of the plan.
Death Benefits
In the event of death before taking benefits, the bid value of the Accumulation Units are payable as a lump sum.
If CPB was added to the plan, the contributions used to purchase Capital Units are also payable as a lump sum.
Available
Available: 1 July 1988 to 31 December 1994
Plan Type
A Personal Pension Plan designed to provide retirement benefits and/or life assurance protection. A Registered Pension Scheme (RPS) since 6th April 2006.
Regular Contributions
Allocated to Capital Units for the first two years and the first two years of any increase. (For plans with a declaration date on or after 6 September 1991 where contributions are not maintained during the first two years, or the first two years of an increase, reinstated contributions will continue to be allocated to Capital Units until the two year period is complete).
Regular contributions are allocated to Accumulation Units thereafter.
Capital Units are converted to an equivalent value of Accumulation Units at SRA (or age 65 if earlier).
Single Contributions, Protected Rights and Transfer Values
Allocated to Accumulation Units.
Allocation Rates
| Regular contributions | |
|---|---|
| More than 10 years before SRA | 100% |
| Within 10 years of SRA | 105% |
| After SRA | 100% |
| Single contributions | |
| £2,000 or more | 96% |
| £1,000 to £1,999 | 95% |
| £999 or below | 94% |
| Protected rights | |
| £1,000 or more | 96% |
| £500 to £999 | 95% |
| £499 or below | 94% |
Note: Where the transfer received is not from a Group Pension Scheme of a previous employer and the plan has a declared date prior to 6 September 1991 the allocation rate will be enhanced to 102% to Accumulation Units.
Charges
| Bid/Offer Spread | 5% |
|---|---|
| Capital unit charge | 3.5% a year |
| Annual management charge | 0.75% a year (which is reinvested on Accumulation Units) |
| Indexed policy charge | A monthly deduction to cover the expense of running the plan. This deduction will normally increase each year on 1 January |
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund. |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge. |
| Fund switch charge | We don’t currently make a charge for switching funds. If in future we decide to charge, we’ll tell you. |
Investment Options
A range of funds are available to choose from.
Optional Benefits
Increases - may be made at any time. Increases below the minimum amount will be subject to a minimum increase charge.
Indexation - Contributions can be increased automatically at renewal in line with the Average Weekly Earnings (AWE).
Additional Indexation - Indexation can be applied to a higher notional contribution level so that contributions increase at a rate higher than AWE.
Full Return of Fund (FROF) - In the event of death before taking benefits, the bid value of the Capital Units will be returned.
Waiver of Contribution (WOC) - If the client is totally disabled through sickness or accident and unable to work for more than the deferment period (3 or 6 months), contributions are waived but units will continue to be credited to the plan.
Stopping Contributions
Contributions can be stopped and re-started at any time without penalty. Deductions for the Indexed Policy Charge and FROF will continue even if no contributions are being paid.
Contracting Out
It was possible to contract out of the State Second Pension (previously called SERPs).
Personal Life Plan
It was possible to include Life Cover to provide a guaranteed sum assured to be paid on death. If the Life Cover lapses it cannot be re-instated.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75. If benefits are taken prior to SRA, a Capital Unit reduction is applied depending on the unexpired term of the plan.
Death Benefits
In the event of death before taking benefits, the bid value of the Accumulation Units are payable as a lump sum.
If FROF was added to the plan, the bid value of the Capital Units are also payable as a lump sum.
Available:
23.10.2000 to 31.01.2004
Plan Type
A Personal Pension Plan designed to provide retirement benefits. A Registered Pension Scheme (RPS) since 6 April 2006.
Allocation Rates
Regular and Single Contributions: 100%
Charges
| Annual management charge | 0.9% a year |
|---|---|
| Fund expenses | Deductions from each fund to pay for the day to day activities of managing each fund |
| Additional annual management charge | The fund management companies charge Zurich for their services. Some of the funds have an additional charge - the additional annual management charge |
Investment Options
Two funds are available to choose from:
- Gilt & Fixed Interest Pension Fund
- UK Equity Pension Fund
Optional Benefits
Increases - may be made at any time.
Indexation - contributions can be increased automatically at renewal at a rate between 1% and 10%.
Stopping Contributions - contributions can be stopped and re-started at any time without penalty.
Taking Benefits
Benefits can be taken at any time after age 55 and before age 75.
Death Benefits
In the event of death before taking benefits, the automatic death benefit is the value of the individual’s fund at the date of death.
Available
From July 2007 until 30 December 2012
Plan Type
The Zurich SIPP is a self-invested pension scheme.
Minimum payments
For new customers, the minimum initial single or transfer payment required was £10,000.
Additional single payments or transfer payments can still be made from a minimum of £1,000.
Regular payments are allowed where a single or transfer payment has already been made as long as the payments are at least £100 a month, £250 a quarter or £1,000 a year. Increases can be made from £25 a month, £75 a quarter or £100 a year.
Protected Rights transfer payments were accepted to the SIPP from 6 April 2012. Prior to this, they had to be invested in the Protected Rights Transfer Plan.
For customers taking capped drawdown, this is subject to a minimum fund value of £50,000 after payment of any pension commencement lump sum.
Terms
Fund based charge:
| Fund value | Fund-based charge each year |
|---|---|
| £10,000-£19,999 | 1.00% |
| £20,000-£49,999 | 0.75% |
| £50,000-£99,999 | 0.65% |
| £100,000-£249,999 | 0.60% |
| £250,000+ | 0.55% |
For single and transfer payments on nil commission basis:
The fund based charge for regular payments is 0.70% each year.
Age range at entry: 18-76 attained for pre-retirement. 55-76 attained for capped drawdown.
Loyalty Bonus: Only payable on single and transfer payments. A loyalty bonus will be paid on the fifth and tenth anniversary of each single or transfer payment into Zurich pension funds.
1% of the fund value attributable to the payment will be paid on the fifth anniversary and 0.5% of the fund value attributable to the payment will be paid on the tenth anniversary.
Where funds are moved to drawdown pension from pre-retirement for the first time, (either fully or partially) the loyalty bonus entitlement on the pre-retirement fund will cease. The funds in the new drawdown pension plan will then be eligible for any loyalty bonus that applies at that time.
If the customer has already been invested in Zurich funds for more than two years, an additional 0.25% bonus will be added to the funds in the drawdown pension plan that relate to the single or transfer payments in the pre-retirement plan.
Nil income enhancement: Only payable on single and transfer payments. At the end of each plan year where no units are cashed in, we will pay a bonus of 0.1% a year of the value of the Zurich pension funds investment into the plan by creating additional units.
Bid / Offer spread: None applies
Policy Fee: None applies
Early cancellation charge: Only applies where commission or extra allocation was paid for using the Establishment Charge option.
Early cancellation charges
Early cancellation charges only apply to single and transfer payments where initial commission or increased allocation was selected using the Establishment Charge and all or part of the fund associated with the relevant payment is cashed in within the first five years. Where this does apply, the following early cancellation charges are taken for each 1% of initial remuneration or increased allocation:
| Year | % |
|---|---|
| Year 1 | 1% |
| Year 2 | 0.8% |
| Year 3 | 0.6% |
| Year 4 | 0.4% |
| Year 5 | 0.2% |
Capped drawdown
Regular income can be taken monthly, quarterly, half-yearly or yearly, payable on either the 1st, 7th, 14th or 21st of the month. Ad-hoc income withdrawals are also available.
For details of additional drawdown charges, please refer to the current charges document.