MVA's

the_doctor_2

I have checked up on my options with my StdL wp pension policy (due to flotation etc) and had a real scare when I was infomed of the amount I would have to pay to exit or move my pension.

I found this cutting whilst surfing:

Gill said: ‘Where MVRs are most likely to apply is where the bulk of investment took place when markets were at their peak in the late 1990s.’He said long-term regular premium policies and those taken out after 2002 and were least likely to face an MVR.

My policy was added to considerably in the late 90's by StdL from redress, taking this into account do I have a case that I am being penalised by the redress of StdL initial mis-selling?

Hope this makes sense, please ask for clarification.

doc

Debt_Free_Chick

the_doctor wrote:

My policy was added to considerably in the late 90's by StdL from redress, taking this into account do I have a case that I am being penalised by the redress of StdL initial mis-selling?

It rather depends on whether and how SL are applying any MVR to the redress.

You will need to get the current value and the current surrender/transfer value. If an MVR has been applied, you then need to ask SL to explain the calculation.

You are assuming that SL will penalise the redress because it was added in the late 1990s ... but this might not be the case.

EdInvestor

What level of MVA is being applied?

the_doctor_2

Thks for replies!

D_F_C. I have now asked the question to StdL and look forward to a reply that I can understand, if not watch this post! On the document sent it shows no breakdown or notation to suggest any part of the total has been treated differently.

EI. total sum 164k. sum after Transfer 146k =18k

If I were to move the share issue would redress about half the transfer fee, if the figure is being worked out on my redress and the MVA was applied only to the sum excluding redress, then it might be a feasible thing to consider moving out of WP.

doc

EdInvestor

EI. total sum 164k. sum after Transfer 146k =18k

Lump sums that came into WP bonds from c.1999 - 2001 are still attracting MVAs of more than 20%.So if half the pension was regular premium and attracted no MVA and the other half (the redress) attracted 20% or so, then an overall figure of 11% might be about right.

dunstonh

SL have some good funds on the PPP. So, it may be better to find out how much you can switch funds without incurring an MVR.

EdInvestor

If he's going out of WP, he won't be able to avoid the MVA, doesn't matter what funds he switches into.

dunstonh

Not 100% out of WP but a phased switch.

the_doctor_2

OK just received answer from StdL....

hank you for your email.

Q. How is the transfer value calculated?

A. You take the fund value and minus any adjustments for the With Profits Fund and then minus any deductions for future charges.

I hope that this may be of some help to you.

If you have any further queries please do not hesitate to contact us.

Guess thats straight forward, but will ask them how the redress was handled in the calculation which may not be so straight forward!

Thanks for other responses, will await further reply.

Doc

the_doctor_2

The question regarding transfering within StdL has been answered.
I cannot transfer to other pension schemes within StdL without incuring the same MVA. However I can stop my current contributions and place them in another scheme.
Not really the answer I wanted as I have made the bulk of my contributions and will not be seriously contributing for another five years.
I think I shall have to sweat it out for a while and see if they make any decisions themselves regarding closing the WP funds in the near future.

Thanks for previous replies!

the Doc.