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Parents’ oversight could deny children of windfalls

Standard Life says thousands of children may miss out on windfall payments as their parents or grandparents have forgotten to validate their votes ahead of demutualisation.

The windfalls relate to stakeholder pensions that have been taken out on behalf of children or grandchildren.

Standard says 6,400 children are in line to receive entitlements in what is understood to be the first life office demutualisation to feature windfall payments for children.

Up to 1.34 million shares are set to be distributed to minors, resulting in a total payout of about 3.6m based on the estimated valuation of 2.65 a share. The average allocation to children is 211 shares worth 559 and the biggest allocation is 579 shares worth 1,534. The youngest eligible member to benefit is a two-year-old.

More than one-fifth of Standard’s total members – around 500,000 people – have yet to validate their membership ahead of the special general meeting on May 31. IFAs are being urged to contact clients to participate in the demutualisation vote, with the deadline for postal votes looming on May 28.

Group head of media relations Scott White says: “The key issue here is because the windfalls relate back to stakeholder pensions, it is the parents or grandparents that the problem lies with.”

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