Re: Norwich Union maturity pension offers

Apr 11, 2004 1 Replies

That is correct, my issue was that an already offered bonus was removed with no prior warning at the point of deferment, and that no indication was given that a so called terminal bonus was included in the offer, and that this was subject to future review. Normally on "with profits policies", bonuses once added are not removed other than by the MVA adjustment method. My contention is that by not declaring and then removing a "hidden" terminal bonus from the original open market maturing value offered, the company did not meet its legal obligation of full and accurate disclosure, and failed in its duty of care in not warning me of possible penalty if deferment was selected from their offers. I believe that the lack of transparency has put me at a severe disadvantage as evidenced by their subsequent quiet removal of the originally included terminal bonus causing my policy to be worth less after 2 further years investment despite the companies own figures showing an underlying fund gain of approx 4 percent during the same period. It is an added insult that during this period of supposed lack of company performance, shareholder dividends and director bonuses continue to be paid.



Alan


In message , Alan Whitlock writes

I have been following this thread but because you have snipped everything from your reply Im not sure what it is that you are claiming to be correct.

I agree that you should have been advised better here.

As already said, Im sure, the MVA only applies to early surrenders and annual bonuses, NOT terminal bonuses, which are, and always have been, discretionary.

I agree.

I disagree. The payment of bonuses doesnt work like that, and it certainly doesnt work like that when the FSA are poking their noses into W/P funds.

Youve missed the point completely here I feel. NU are NOT a mutual company, they are owned by shareholders, who expect a dividend, and they employ the directors to do a job which, apparently, the shareholders think they did well enough to reward them with bonuses. The profitability of NU is not related to the performance of the w/p fund.

Its not a lack of 'company' performance but 'fund' performance.

What did you do with the shares you got when they demutualised?

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required