RNPFN with-profits fund bonuses
Bonuses for RNPFN with-profits policies
Find out more about bonuses for the with-profits policies invested in the RNPFN With-Profits Fund.
There are two types of bonus:
- Annual bonus (also known as regular bonus on some policies), added during the policy’s term.
- Final bonus, which may be added when the policy ends.
Annual Bonus (also known as Regular Bonus)
The annual bonus (also known as regular bonus on some policies) rates added to the with-profits policies invested in the RNPFN With-Profits Fund are set in April each year (though they can also be reviewed between annual declarations).
When setting annual bonus rates the general aim is for annual bonus rates to be added at a modest stable level, taking into account:
- The underlying value of the investments,
- The current and projected financial strength of the RNPFN Fund.
More information on annual bonuses can be found in ‘Your guide to how we manage the RNPFN Fund for with-profits business’.
The annual bonus rates declared in April 2026 in respect of calendar year 2025 are shown below.
| Product type | Annual bonus declared April 2026 |
|---|---|
| Endowment Savings Plans |
2.00% |
| Whole of Life |
2.00% |
| Moneybuilder policies | 2.00% |
| Pensions - Regular Premium (excluding interest bearing pensions) | 2.50% |
| Pensions - Single Premium* (excluding interest bearing pensions) | 0.00% |
| With Profits Bond |
2.00% |
| OneISA |
4.50% |
| Product type | Annual bonus declared April 2026 |
|---|---|
| Endowment Savings Plans |
2.00% |
| Whole of Life |
2.00% |
| Moneybuilder policies | 2.00% |
| Pensions - Regular Premium (excluding interest bearing pensions) | 2.50% |
| Pensions - Single Premium* (excluding interest bearing pensions) | 0.00% |
| With Profits Bond |
2.00% |
| OneISA |
4.50% |
Final Bonus
Final bonus may be paid at the date you receive the benefits under your policy. If the regular bonuses you’ve had during your policy term are not a fair return, we’ll add a final bonus to increase your payout when your policy ends. Final bonus is not guaranteed and can be reduced (including to zero). It can be zero if the fair value of your policy is less than the guaranteed benefit*.
Final bonus may include an enhancement used to distribute the ‘RNPFN inherited estate’ of the RNPFN Fund if you’re eligible to receive it (see below).
More information on final bonus can be found in ‘Your guide to how we manage the RNPFN Fund for with-profits business'.
*We do not currently declare final bonus rates for many single premium pension policies. The benefits under these policies already exceed the amount that can be justified by the investment returns earned on them. This reflects the high level of the guaranteed benefits these policies enjoy.
Market Value Reduction (OneISA Only)
We’ll only apply a market value reduction to make sure that:
- When you cash-in your policy, your payout isn’t unfairly higher than the underlying value of the investments within the RNPFN Fund.
- The remaining policyholders in the RNPFN Fund will also get a fair share.
A market value reduction cannot be applied in certain circumstances – you can check your policy documents to find out more.
More information on market value reduction can be found in ‘Your guide to how we manage the RNPFN Fund for with-profits business’.
Closing your policy early
For conventional with-profits policies, if you close your policy early (called ‘cashing in’ your policy) guaranteed benefits do not apply. If you do this, we’ll work out how much to pay you (the cash in value) in a way that’s fair to both you and the policyholders staying in the fund.
The cash in value for conventional with-profits polices may also include an enhancement used to distribute the ‘RNPFN inherited estate’ (see section below).
Distributions from the RNPFN inherited estate
As part of the deal when the LV= group bought the business of RNPFN, we’re distributing the RNPFN inherited estate over the remaining lifetime of the eligible with-profits policies in the RNPFN Fund, where appropriate, by enhancing the payout when policies end or are cashed in. The RNPFN inherited estate is the money in the RNPFN Fund not needed to pay the RNPFN Fund’s liabilities. This has built up from profits made by the RNPFN Fund (and previously the Royal National Pension Fund for Nurses).
RNPFN with-profits policies taken out on or before 10 July 2001 are eligible to share in this distribution. Policy applications made on or before 10 July which were received by 19 July 2001 are also eligible. Top-ups to RNPFN OneISA policies made after these dates are not eligible to share in this distribution even if the original investment in the OneISA policy is.
The enhancement is added to policy benefits when they are paid, unless we are paying only the guaranteed benefits. The same percentage is used for all policies (or top-ups to policies) that are eligible for it. The rate is not guaranteed and could go up and down and could be zero. We review the amount of the distribution at least once a year.
The current rate of enhancement is 31%. The table below also shows the previous recent rates:
|
Date rate of enhancement changed |
Rate |
|
April 2026 |
31% |
|
April 2025 |
32% |
|
April 2024 |
31% |
|
Example The fair value of an eligible policy (including final bonus) at maturity was £3,000. The enhancement of 31% would increase the final bonus so that the total paid out increased by 31%. This means the amount paid out would be £3,930. |
More information on the RNPFN Inherited estate can be found in ‘Your guide to how we manage the RNPFN Fund for with-profits business’.
