FOR ADVISERS ONLY
Declared Bonus for 2017
Talisman, Individual and Retirement Solutions
The directors declared regular bonuses for 2017 and terminal bonus for claims in 2018 in respect of these unitised with profits contracts. The bonus rates are shown in the table below:
| Regular bonus rate on basic units | Regular bonus rate on declared bonus units | Terminal bonus rate | |
|---|---|---|---|
| With Profits 1 |
2.0% |
2.0% |
from 0 to 115% |
| With Profits 2 |
2.0% |
2.0% |
from 0 to 61% |
| With Profits 3 |
2.18% |
2.18% |
from 0 to 96% |
- With Profits 1 relates to business sold or benefits switched to with profits before 12 September 2000.
- With Profits 2 relates to business sold or benefits switched to with profits between 12 September 2000 and 30 June 2001.
- With Profits 3 relates to business sold or benefits switched to with profits after 30 June 2001.
Notes
Interim bonuses are payable at the regular bonus rates for 2017.
Terminal bonus is calculated as a percentage of the with profits unit account in respect of each policy year's premium payments and depending on the number of years of participation completed. These rates apply to policies becoming claims by maturity and death with effect from 1 January 2018.
Crest Growth Plan
From 1 January 2018 the bonus rate is 2.0% p.a. for business sold or benefits switched to with profits before 1 July 2001 and 2.18% for business sold or benefits switched to with profits after 30 June 2001.
Money Purchase
In addition to the bonus rates above, a terminal bonus may be payable to money purchase schemes. The terminal bonus is calculated as a percentage of the amount of the with profits unit account in respect of each year's premium payments, the percentage depending upon the number of years of participation completed. The maximum terminal bonus rate for business sold or benefits switched to with-profits before 12 September 2000 is143% and, for business sold or switched to with profits before 30 June 2001,68%. Business sold or benefits switched after 30 June 2001 has a maximum terminal bonus of102%. These rates apply to policies becoming claims by maturity and death with effect from 1 January 2018.
Defined Benefit
For defined benefit schemes a special bonus of 5% has been declared for 2017 in lieu of terminal bonus. Further special bonuses in lieu of terminal bonus may be declared in the future but their size and timing will depend, amongst other things, on future investment conditions. The size of the bonus this year should not be taken as an indicator of possible future special bonuses.