Declared Bonus for 2018

The current bonus rates for Unitised With Profits - Talisman, Individual and Retirement Solutions, Crest Growth Plan, Money Purchase and Defined Benefit

Talisman, Individual and Retirement Solutions

The directors declared regular bonuses for 2018 and terminal bonus for claims in 2019 in respect of these unitised with profits contracts. The bonus rates are shown in the table below:

 Regular bonus rate on basic unitsRegular bonus rate on declared bonus unitsTerminal bonus rate

With Profits 1

2.0%

2.0%

from 0 to 136%

With Profits 2

2.0%

2.0%

from 0 to 71%

With Profits 3

2.18%

2.18%

from 0 to 115%

  • 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 2018.

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 2019.

Crest Growth Plan

From 1 January 2019 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 is 178% and, for business sold or switched to with profits before 30 June 2001, 72%. Business sold or benefits switched after 30 June 2001 has a maximum terminal bonus of 119%. These rates apply to policies becoming claims by maturity and death with effect from 1 January 2019.

Defined Benefit

For defined benefit schemes no special bonuses have been declared for 2018. 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. 

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.