Scottish Amicable Endowment - Payment Of Further Bonus

Froggitt

Nice one. I have a policy with a similar target maturing later this year. Also hoping I can get away with a few hundred quid shortie. Dont think my other policy maturing next year will do as *well*, as it was a couple of years shorter than the first policy.

Did you ask them about the payment of the "further bonus"?

Bettie

Froggitt wrote: »

Nice one. I have a policy with a similar target maturing later this year. Also hoping I can get away with a few hundred quid shortie.

me too! target £28,350 a few months left to go. :T

phil943

i still have my original letter from scot am dated april 1999 which reads ,implementatoin of prudential offer. The full value of the assets in scottish amiciable with profits fund would be distributed to the existing policyholders as their policys were paid out.This was estimated to increase the present value of further payouts by a further £530 million.

This is only valid if you took your policy out before 1/10/1997

Thermoman

phil943 wrote: »

i still have my original letter from scot am dated april 1999 which reads ,implementatoin of prudential offer. The full value of the assets in scottish amiciable with profits fund would be distributed to the existing policyholders as their policys were paid out.This was estimated to increase the present value of further payouts by a further £530 million.

This is only valid if you took your policy out before 1/10/1997

Does it mention how this money is accounted for in the payout?

I've been asking Prudential whether my policy (now matured) contains the "Further Bonus" that was to be paid out from the £530m fund. I'm still waiting for an answer but so far it seems that they do not know what I'm talking about.

phil943

Thermoman wrote: »

Does it mention how this money is accounted for in the payout?

I've been asking Prudential whether my policy (now matured) contains the "Further Bonus" that was to be paid out from the £530m fund. I'm still waiting for an answer but so far it seems that they do not know what I'm talking about.

thanks for the reply

IT SAYS.
An overwelming majority(98%) of those policyholders who voted approved the proposals that scottish amiciable shold become part of the prudential group.the benefits to qualifying with profits policyholders,which were estimated to total £1.6 billion were as follows
£600 millionin cash was allocated to qualifying members
Immediate special bonuses with a then current value of£470 million were added to with profit policies, and
the £530 million which i've already quoted

Froggitt

So they added a billion pounds to the pot. How different are the payouts from a Prudential endowment not part of the billion quid extra pot? Where is the billion quid reflected in the payouts?

bluefrew2

Froggitt wrote: »

So they added a billion pounds to the pot. How different are the payouts from a Prudential endowment not part of the billion quid extra pot? Where is the billion quid reflected in the payouts?

What does it take to tell all you SA policy holders or ex policy holders who missed out on the "further bonus" to get in touch with the Ombudsman? The Pru have stolen your money!!! Their silence on the subject tells all and I will not give up on this even if I have to go to the small claims court

thebull

Hi all,as a S.A./PRU with profit policy holder I am with bluefrew on this one the only thing I think though is from what I have read and heard the financial ombudsman seems a pretty toothless thing and dare I sugest almost part of the financial organisations nest !!!!
How about lots of us gt together and take it to court?
Anyone up for this ? I am.

hansi

My Prudential policy matured last year and paid out with a small shortfall. Regarding the "special bonus" issue, I have a letter from the Pru dated 17 Oct 1997 and I quote"

"Your Benefits

As a qualifying member you are entitled to the following benefits which are detailed on the enclosed schedule.

A fixed cash sum of £XXXXXX plus a variable cash payment. A cheque for the sum of £XXXXXX (total) is enclosed.

A special bonus to each of your qualifying policies as at 1 October 1997.

(This is the important bit)

"You may also be entitled to further bonuses, payable from the distribution of the surplus assets of the with-profits fund, to be added to your policy when it is paid out The exact amount due in each case cannot be determined until that time since it will depend, among other things, on how long each policy runs and further investement returns"

I think the word "may" be the catch!

Photonic

hansi wrote: »

"You may also be entitled to further bonuses, payable from the distribution of the surplus assets of the with-profits fund, to be added to your policy when it is paid out The exact amount due in each case cannot be determined until that time since it will depend, among other things, on how long each policy runs and further investement returns"

I think the word "may" be the catch!

The word ‘may’ used in the statement of entitlement to “further bonuses” I understood to be used as a legal safety net as we all appreciate that nothing in life can ever be truly guaranteed. However, assuming no disaster were to occur to the 1997 “further bonuses” fund of £530million, e.g. in terms of further investment returns, then “further bonuses” should be expected to be paid out with an individual policy value well in excess of that policy’s previous “special bonus” value.
And here it is important to recall – the policyholder benefits statements under the Transfer Proposals, before voting occurred, regularly used the word ‘should’, and not ‘will’, in the entitlement to receive a cash payment and special bonus under the same non-guarantee sense – and they were subsequently paid out to eligible policy holders.