Clerical Medical expects to re-open its group stakeholder pension product to new business before the...
Clerical Medical expects to re-open its group stakeholder pension product to new business before the end of this year.
The life office does not intend to alter the specification of its product for the relaunch. It closed its business to new companies in September 2001 after it received four times the level of applications it was expecting, creating a backlog of applications. 'We have pretty much finished inputting all the details from the backlogged applications,' a spokesman for Clerical Medical said.
The company originally said it would reopen to stakeholder in the first quarter of this year. To deal with the backlog and enable a relaunch into the group pensions stakeholder marketplace the company hired over 100 new staff.
Although the group stakeholder's was closed to new business, Clerical Medical was obliged to allow new employees of existing clients to join its stakeholder accounts. In many cases employers set up stakeholder schemes with Clerical Medical before offering these to their employees. This effectively meant the backlog was not static and grew from September.
The minimum scheme size for the Clerical Medical group product is five employees.
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