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RNPFN WITH-profits Interest Bearing Pension Policies

Interest bearing pension policies

Interest bearing pensions

  • Some Liberty Pension Addplan and Liberty Personal Pension Plan policies are interest bearing pension policies which means that rather than having regular bonuses added, interest is added instead.
  • Each year we'll send these pension policyholders a statement that will show the latest value and provide policy information.
  • More information on interest bearing pension policies and how we manage the RNPFN Fund can be found in 'Your guide to how we manage the RNPFN Fund for with-profits business'.

The most recently declared interest rates for these policies are shown below

Period Beginning
 Interest Rate p.a.
6 April 2026 2.50%
6 April 2025

2.50%
6 April 2024
 2.50%
6 July 2023 2.50%
6 April 2023 0.50%
Period Beginning
 Interest Rate p.a.
6 April 2026 2.50%
6 April 2025

2.50%
6 April 2024
 2.50%
6 July 2023 2.50%
6 April 2023 0.50%
Increased financial strength of the RNPFN Fund meant that from 6 July 2023 we increased the interest rate for RNPFN interest bearing pensions. We expect the increased rate to be maintainable in future although we can’t promise this.

Final bonus

In 2016 we made some changes to how these policies work. They are now invested in the RNPFN With-Profits Fund and this means that in addition to the interest earned, a final bonus may now also be added to the value of these policies when they end. Any final bonus currently applying to a policy will be shown in the annual statement sent to policyholders. The links above include more information on the With-Profits Fund.

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 (including interest bearing 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.

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 most recent rates are below:

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 retirement date was £10,000. The enhancement of 31% would increase the final bonus so that the total value payable increased by 31%. This means the value payable would be £13,100.

More information on the RNPFN Inherited estate can be found in ‘Your guide to how we manage the RNPFN Fund for with-profits business’.