Norwich Union will not charge above 1%pa on existing individual or group personal pensions as from 6...
Norwich Union will not charge above 1%pa on existing individual or group personal pensions as from 6 April 2001.
This also applies to contracts from CGU, Commercial Union, General Accident and Provident Mutual. The fees are designed to fall in line with the charging limits on stakeholder.
There will be no change in renewal commission and no immediate change to initial commission. However, Norwich Union said it is keeping the position under review.
Norwich Union has already launched a range of personal pensions earlier this year that have been designed for the stakeholder environment.
These include Your Pension, Your Pensions Select and Designer Pension. The group said that investments within its Pension Assured Fund are subject to an additional charge of 0.25%.
For investors in the Optimiser Personal Pension, the maximum charge of 1% applies to all business quoted before the 17 November 2000, and starting before 1 December 2000. Norwich Union will take into account future loyalty bonuses on the Optimiser Personal Pension, when determining prospective charges.
Sipps and drawdown products will not be covered by the maximum charging structure. Life cover and waiver of contribution cover will also continue to be charged for outside the 1% per annum limit.
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