Pearl Pension

dunstonh

Just to ensure clarification for anyone reading this thread with a Pearl pension but not contributing to it... (the thread that is, not the pension )

Pre 1988 contracts with Pearl are actually very good value much of the time. Many pre 1988 contracts have guranteed annuity rates which are valuable to you. Some even have guaranteed minimum fund values which are well above reasonable growth rates and very very desirable.

Just because an insurance company has gone downhill and many of its contracts are now out of date and poor performing, does not mean that they all are.

EdInvestor

Everyone with a pre-1988 pension ( Retirement Annuity Contract or Plan RAC/RAP) at any insurance company should always check for valuable Guaranteed Annuity Rates, never convert these pensions to any other type without investigating and evaluating any guarantees. It's sensible to ask about guarantees with ALL With-profits pensions IMHO, there are many of them about.

dunstonh

Just to add to Eds comments. Some providers were offering GARs right up until 1995 (Scottish Widows for example). Also, GARs also appear on unit linked funds as well as With Profits.

You cannot assume anything really and each case, regardless of the dates, provider or type of funds, should have the question asked "are there any guarantees, of any sort, built into the pension plan, such as guaranteed annuity rates"?

ReportInvestor

The investor should be able to ask about the liablities on any fund they are joining.

Can they do that dh, or do the insurers refuse to co-operate?

dunstonh

The insurers are unlikely to respond and even if they do, they may just say refer to our PPFM and accounts.

Pal

ReportInvestor wrote:

The investor should be able to ask about the liablities on any fund they are joining.

Can they do that dh, or do the insurers refuse to co-operate?

Alas the solvency position of the fund (which is basically what you are asking for) is considered commercially sensitive information by insurers, which their competitors would use against them if they disclosed it.

Personally I agree that they should have to include solvency figures for their WP funds on a standard comparable basis each year. Investors could then review the figures before choosing to invest.

EdInvestor

One way to get a picture of the liabilities and solvency position is to check what percentage of the WP fund is invested in equities, as liabilities must now be covered by bonds. This info also gives you an idea of its likely performance going forward.

But I notice that this information, which used to be in the PPFM, is not there any more.

However it is usually revealed when annual bonuses are announced - or at the announcement of new sales figures or the company's annual results.So with a bit of digging, the figures can usually be found.

However I quite agree this is not good enough and the figures should be readily available and updated on the company's website at all times.