Standard Life windfall news

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From yesterday's Herald

"Women will receive more shares than men for the same contributions in the Standard Life pay-out, the insurer said yesterday.

"There are different mortality rates for males and females, so females get a higher sum assured," Standard said.

On £50-a-month whole-of-life policies, women will receive 20 more shares on policies started in 1994, and 128 more, worth an estimated £340, on plans dating from 1984.

Almost all policyholders will get some variable allocation shares on top of the fixed 185 shares worth £499 at the estimated flotation price midpoint of 265p.

However, a £50-a-month unitised pension taken out in 2004, will receive an extra allocation of just two shares.

Standard said a few pay-outs would be over £100,000, but those would be to trustees of pension funds holding policies as investments.

Only 250,000 members will receive shares worth more than £3000, with some 275,000 in the £2000 to £3000 bracket.

Anyone who began a £10,000 single premium unitised pension in 1984 is entitled to 5174 shares worth £13,711. The same plan taken out in 1989 is worth 2277 extra shares with an estimated value of £6034.

For regular premium £50-a-month plans, the pay-out on a 1984 policy is 1528 shares worth some £4049.

Standard said: "It does not matter how many with profit policies a member has, the member will only receive one fixed allocation. The allocations are indicative and members must be eligible at the SGM date (May 31)."
Some 1.25 million members, more than half the total, will receive shares worth less than £1000."

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The_Glasgow_Herald wrote:

"There are different mortality rates for males and females, so females get a higher sum assured," Standard said.

I wonder if the Standard spokesperson is confusing cause & effect?

Women get a higher sum assured because more of their contributions go into the WP fund since their life insurance element is smaller.

I still think it's the contributions made, rather than the sum assured, that is key.

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plumb1 wrote:

I transfered a lump sum of £3474 back in feb 1986 into the with profits pension fund, i have not added to it.
in 2003 it was worth £25,278:cool:
in 2004 £23,557:eek: and 2005 19,759,:mad: so in 2-3 yrs it has fallen greatly

How many shares should i expect to recieve????? Bet it not anywhere near the fall.

Sorry to here this, plumb1. Could you let us know when it arrives because we haven't heard from any pension fund holders. In the meantime this may give a clue - but bear in mind that the two years 1984 & 85 were good investment years and would build up greater entitlement than you.

From yesterday's Herald
"Anyone who began a £10,000 single premium unitised pension in 1984 is entitled to 5174 shares worth £13,711. The same plan taken out in 1989 is worth 2277 extra shares with an estimated value of £6034."


If your's is a similar policy - and the two years 1984/5 accrued 35% more, and if they didn't award extra for the policy size (they will because the annual charge % will be greater on yours) then you might be hoping for £3,475.

Fingers crossed.

tripnip

I haven't got time to post it, because I am going away for the day in a minute, but the Telegraph today has a small indicative table for 25yr £50 policies (whole of life, endowment and unitised pensions).
For males the variable figures for endowments are 2004-0, 1999-46, 1994-132, 1989-544, 1984-1287. Hopefully, these are illustrations only and you get more for a 1998 policy than say a 1999 policy.

10 times as much for a 20 year as opposed to a 10 year policy seems a bit too steep a gradient IMHO!

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bobber wrote:

My mum got her details through too if that helps,

We both took them out at the same time (Sept 92) but hers was for £9000 for 15 years (mine 37000 for 25). She's been paying £35.79 a month... She's been allocated 342 shares (43 less than me).

Very useful.

The variable rate windfall as a % of her contributions is 8.4% se compared to your 7.7%.

This would seem to indicate three things.
Women do get more - see the Herald article above!
The length of endowment policy is not critical as hers was 15 years and yours 25.
The sum assured [or target amount] is not important. It is the actual contributions made, and when, that matter (see my criticism of the Standard Life press spokesman above re the Herald article).

This does seem to confirm the method I'm using (it's just candygirl that doesn't fit ).

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tripnip wrote:

10 times as much for a 20 year as opposed to a 10 year policy seems a bit too steep a gradient IMHO!

I agree.

But this is how Mike Arnold - the appointed actuary - has worked in the past.

When he was appointed, we did raise these concerns.

loisamelia

ReportInvestor wrote:

Updated version of where we are:

An initial assessment of variable windfalls based on contributions into endowment policies from the start to March 2004. All 25 year endowments unless stated

February 1985 - 23.6% of contributions - Gorgeous George
?June? 1986 - 9.9% of contributions - candygirl
September 1987 - 18.3% of contributions - savingpennies
July 1990 - 9.3% of contributions - Mrs GG
September 1992 - 8.4% of contributions - bobber's mum (15 year policy)
September 1992 - 7.7% of contributions - bobber
August 1994 - 6.7% of contributions - loisamelia

Then add on the 185 share / £490 basic windfall per member

As you can see, length of investment seems to be critical

Please keep the information coming in

so the amount shown in our letters doesnt include the basic windfall then i thought it was the total we would get including the basic.HELP!

Lady_K

Sorry if I sound a bit dumb but is this thread to do with the upcoming demutualisation vote?

plumb1_2

ReportInvestor wrote:

Sorry to here this, plumb1. Could you let us know when it arrives because we haven't heard from any pension fund holders. In the meantime this may give a clue - but bear in mind that the two years 1984 & 85 were good investment years and would build up greater entitlement than you.

From yesterday's Herald
"Anyone who began a £10,000 single premium unitised pension in 1984 is entitled to 5174 shares worth £13,711. The same plan taken out in 1989 is worth 2277 extra shares with an estimated value of £6034."


If your's is a similar policy - and the two years 1984/5 accrued 35% more, and if they didn't award extra for the policy size (they will because the annual charge % will be greater on yours) then you might be hoping for £3,475.

Fingers crossed.

Arrived today, 1546 shares, so a little over £4k(@2.65p) does this seem correct?, I would rather have had the growth in my policy.

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plumb1 wrote:

Arrived today, 1546 shares, so a little over £4k does this seem correct?, I would rather have had the growth in my policy.

It seems in order. My £3.5K estimate was designed to avoid disappointment.

To lois
Your letter from Standard shows you the total.

For the purpose of calculating the variable amount I have deducted the basic rate windfall.

So your variable rate windfall = 6.7% of what you have paid in and your total windfall is that amount + 185 shares / £490.

Sorry for any confusion .