Swiss Re, the administrator of Tomorrow’s closed book of pension policies, is withdrawing the self-investment option from its deferred Sipps from January 1, 2008, prompting advisers to urge switching.
Admin Re, the administrative arm of Swiss Re, has written to 15,000 customers and 4,000 IFAs saying there will be a three-month window when they can transfer to other providers without penalty.
All the life office’s personal pensions and drawdown policies are set up as deferred Sipps.
The new business operations of Tomorrow will be transferred to LV= in December and LV=/Tomorrow stress that they will remain in the Sipp market.
Tomorrow product design manager Ray Chinn says: “We have a large closed book which will be remaining with Admin Re. The Sipp option on that book of business will be removed. But LV= and Tomorrow will be remaining in the market and will be offering an insured Sipp and a true Sipp.”
Richard Jacobs Pension & Trustee Services director Richard Jacobs says: “I suspect it is a financial and administration decision. I would expect a lot of business to walk out the door. My advice would be to get out as quickly as you can.”