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PIPA Declared Investment Returns

For the Pension Income Plus Annuity Product

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Pension Income Plus Annuity - Declared Investment Return

We aim to add declared investment returns (or DIR) to provide steady growth. These will vary from time to time (and may be negative and reduce your income). We will add any DIR to your basic annuity after allowing for your chosen assumed investment return (AIR). If the DIR added is higher than your chosen AIR, then your income will increase. Similarly if the DIR added is lower than your chosen AIR, then your income will decrease.

Declared investment returns reflect:

  • investment performance of our With Profits Fund
  • The annual charge applied
  • Our current approach to smoothing
  • Our own and/or industry mortality experience (which means we look at trends of when people die) and how we think they might change in future.

We currently declare investment returns four times each year and these will apply from 1 February, 1 May, 1 August and 1 November. The DIR we apply to your policy will relate to the declaration on or immediately preceding your policy anniversary and depend on the entry date of your Pension Income Plus Annuity.

Any mutual bonus allocated to your policy increases the income you receive (before any guarantee is applied). Unpaid mutual bonus allocations do not form part of the guaranteed benefits, so might be taken away in the future. However, we would do so only in exceptional circumstances, for example if it were required to protect our financial solvency. Further information about the mutual bonus scheme can be found here.

We publish a brochure called "Your Guide To How We Manage Our With-Profits Fund" which describes in more detail how we decide the declared investment returns and the mutual bonus, and explains how we operate our with-profits business. You can also find further information in your Pension Income Plus Annuity policy conditions.

Our most recent declared investment returns and mutual bonus rates are shown below:

Entry date in the quarter beginning:

Declared Investment Return

Mutual Bonus

Total

1 November 2011

6.50%

0.5%

7.00%

1 November 2012

6.50%

0.5%

7.00%

1 November 2013

6.25%

0.5%

6.75%

1 November 2014

5.50%

0.5%

6.00%

1 November 2015

5.50%

0.5%

6.00%

1 November 2016

3.00%

0.5%

3.50%

1 August 2012

8.50%

0.5%

9.00%

1 August 2013

8.50%

0.5%

9.00%

1 August 2014

7.75%

0.5%

8.25%

1 August 2015

7.75%

0.5%

8.25%

1 August 2016

1.50%

0.5%

2.00%

1 May 2012

7.50%

0.5%

8.00%

1 May 2013

7.00%

0.5%

7.50%

1 May 2014

6.50%

0.5%

7.00%

1 May 2015

5.75%

0.5%

6.25%

1 May 2016

3.75%

0.5%

4.25%

1 February 2012

8.75%

1.0 %

9.75%

1 February 2013

8.00%

1.0 %

9.00%

1 February 2014

7.75%

1.0 %

8.75%

1 February 2015

5.25%

1.0%

6.25%

1 February 2016

5.00%

1.0%

6.00%