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Catch up with the latest press releases from LV=

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LV= celebrates business success

Press release: 11/06/2008


The LV= Life and Pensions business has celebrated the first six months since the successful acquisition and launch of its new flexible retirement solutions business, by launching a further ‘money where its mouth is' service commitment to financial advisers and their clients.

LV= now promises to pay all Annuity Pension plan holders their tax-free cash within five working days of receiving all funds and/or documentation, or £1,000 compensation will be paid directly to them.

This latest service commitment to financial advisers and their clients builds on the launch in February 2008 of the LV= ‘money where its mouth is' commitment relating to Unsecured Pension (Income Drawdown) plans. Under this scheme, LV= commits to paying tax-free cash to Unsecured Pension plan holders within seven working days or paying £1,000 compensation.

LV= is the only provider in the life and pensions market to pay this level of compensation to customers in this way if they do not receive their tax-free cash on time.

Matt Trott, Head of Annuities at LV=, commented: "We have been working hard to streamline the process of purchasing an enhanced annuity, and we are delighted that we have full online quotation capability on The Exchange and Webline, as well as being able to provide pre-populated application forms and comparative quotes. However, we are also aware of the need to process applications as efficiently as possible, and this is why we regularly chase the ceding scheme for funds, and have made this commitment to pay customers their tax-free cash within five days."

In addition, LV= has also published its service standards for its entire range of annuities, including its Enhanced With Profit Pension Annuity. These include:

Steve Hunt, Managing Director at Rockingham Retirement, said: "This is an excellent initiative from LV=. In our experience our customers make their plans based upon receiving their tax free cash within a reasonable timescale of purchasing their annuity. All too often they have been let down with delays in making these payments to them, causing disruption to their planning, as well as hardship in cases where they have been relying on receiving their money."

Rodney Cook, Managing Director of the LV= Life and Pensions business confirmed: "We have made great strides in the annuity market already this year, having launched our market-leading Enhanced With Profit Pension Annuity in April. We announced this month that financial advisers are now able to obtain real-time quotations for their clients via The Exchange's Exweb. Further, this latest initiative shows that we really are prepared to put our money where our mouth is and commit to providing financial advisers and their clients with industry-leading service."

For more information about annuity products available from LV= visit www.lvadviser.co.uk .


What is the service commitment?
We are making a commitment to release Tax Free Cash (TFC), where appropriate, within 5 working days – subject to the conditions outlined below. If we fail to meet this commitment, we will pay £1,000 to the customer as compensation for the inconvenience caused as a result of this failure.

In what circumstance does this apply?
This commitment applies to all LV= Immediate Vesting Personal Pension Annuity applications, where TFC is payable, received at our Hitchin office from 1 June 2008.

From what point does the 5 day payment commitment start?The 5 working day period starts from the day we receive the last outstanding requirement in our Hitchin office, or from the day we issue the Final Quotation*, if one is needed.

*Final Quotations are issued on cases where the final annuity rate has fallen by more than 1% since we received the application.

How will I know when the 5 working day service commitment period starts?
Once the last outstanding requirement has been received, we will send an email acknowledging that the 5 working day period has commenced.

How will I know that the TFC has been released?
Upon completion, we will issue you with a letter confirming that the TFC has been released.

TFC is paid by BACs, where we instruct BACs to transfer the funds to your client's bank account.

If payment has been requested by cheque, we will post the cheque to your client. Note – the service commitment does not allow for delays caused by the postal service.

Released means the day we instruct BACs to make the payment to the client's bank account.

As soon as we have released the TFC payment, we will issue a letter to you, confirming that the payment has been released. In the unlikely event that the payment is released later than the expected payment date we will confirm payment of an additional £1,000 as compensation for our failure to deliver on this service commitment.

What if I wish to dispute this or have another complaint?
In this case our normal complaint procedures will apply – details are available on request.

Are there any other conditions, which apply?
The service commitment does not apply where there is no TFC payable under the plan.