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Standard Life cuts surrender and transfer values on with-profits

Standard Life has reduced the surrender and transfer values of many of its with-profits plans by up to 8 per cent to allow for poor investment returns experienced since the beginning of the year.

The firm’s stakeholder with-profits pension plans, homeplan with-profits endowments and with-profits bonds update surrender and transfer values automatically each day in response to fluctuations in asset values.

But it says the structure of its other with-profits product lines, including many pension and endowment plans, mean that surrender values and transfer values change less frequently to reflect recent investment experience.

Reductions are typically between 5 per cent and 8 per cent, depending on type of plan and the asset mix.

Standard Life says these changes are consistent with the changes automatically made to the surrender and transfer values of its stakeholder plans, homeplans and with-profits bonds.

It blames the significant investment market falls in the second half of 2008 that have continued through into 2009.

With-profits communications manager Margaret Flaherty says: “These changes have been made to ensure fair treatment for both customers choosing to leave with-profits and those choosing to remain. Today’s changes have had no effect on payouts on maturity or at normal retirement age.

“We will continue to monitor changes in the value of assets backing with-profits plans and will make further changes as and when appropriate to reflect future investment performance, positive or negative.”


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