Yearly bonus declaration: funds where bonus is declared in arrears
The contracts in this category are:
- any with-profits contract that doesn't allow investment in a unitised fund, excluding SEF, BRAP, Money Plus and the Money Purchase Plan
- any with-profits pensions contract that allows investment in a unitised fund and is invested in the WPE or WP1 funds (see specific rates below)
- any Reflex plan taken out between 1981 and 1984
- with-profits investments under Mortgage Link
- with-profits investments under Passport for Life
If the contract doesn't allow investment in a unitised fund and is not a contract written under pensions legislation, the appropriate bonus rate is 'traditional with-profits – life'.
If the contract does allow investment in a unitised fund and is written under pensions legislation, the appropriate bonus rate is 'traditional with-profits – pensions'.
With-profits investments under Mortgage Link and Passport for Life are in the 'Unitised With-Profits – Life WPC fund' and 'Unitised With-Profits - Life WWP fund' respectively.
If you took out a Reflex pensions contract between 1981 and 1984 and didn't switch or redirect future contributions into the Unitised Pensions WPE Fund, the appropriate bonus rate is 'Unitised With-Profits – Pensions Reflex Deposit Administration fund'.
The rates shown apply to both guaranteed benefits and accrued yearly bonuses.
| Declared 31 December 2006 | Declared 31 December 2007 | Interim from 1 April 2008 | |
|---|---|---|---|
| Life | 2.00% | 3.00% | 3.00% |
| Pensions | Nil | 1.00% | 1.50% |
| Declared 31 December 2006 | Declared 31 December 2007 | Interim from 1 April 2008 | |
|---|---|---|---|
| Life WPC fund | Nil | Nil | Nil |
| Pensions WPE fund | Nil | Nil | Nil |
| Pensions WP1 fund | Nil | Nil | Nil |
| Pensions Reflex Deposit Administration fund | Nil | Nil | Nil |
Note: While these unitised with-profits bonus rates are nil, there are significant associated guaranteed rates of growth under the funds in question:
- Life WPC fund 3.9% a year
- Life WWP fund 2.7% a year
- Pensions WPE fund 5.5% a year (approximately)
- Pensions WP1 fund 4.0% a year
- Pensions Reflex Deposit Administration fund 5.0% a year
You can find details of this in our PPFM and CFPPFM.
If you’d like any further information about our bonus rates, please contact your financial adviser in the first instance, or call our Customer helpdesk on 08456 10 00 10. If you have any general questions about our with-profits funds please read the Guide to investing in our with-profits funds.
