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  • FIRST POST
    • rubble2
    • By rubble2 8th Feb 18, 4:22 PM
    • 294Posts
    • 49Thanks
    rubble2
    Scottish Widows - MVR-free guarantee
    • #1
    • 8th Feb 18, 4:22 PM
    Scottish Widows - MVR-free guarantee 8th Feb 18 at 4:22 PM
    Got a letter today from Scottish Widows as my chosen retirement date (65) is imminent.

    The pension policy is invested in the 'Unified with profits fund' and it states that it may have a MVR.

    Further down in the letter it states the following :-

    However you've got a valuable guarantee (MVR-free guarantee).
    If you took out your plan before 1July 1994 (I did) we wont apply an MVR if you take your pension benefits, or transfer the value of your plan, from the EARLIER of your selected retirement date and age 60.


    The above seems to make no sense to me so I rang Scottish Widows for clarification and was told that it should read that the MVR-free guarantee applies if I take my pension between ages 60 and 75, but this clearly not what is stated in the letter, customer service rep said it was an error in the letter but I cannot see how such an error in wording could happen in a letter that must be sent to thousands of policy holders over the course of the year.

    Am I being paranoid or should I push for further clarification?

    Thanks
Page 1
    • longleggedhair
    • By longleggedhair 8th Feb 18, 5:19 PM
    • 306 Posts
    • 373 Thanks
    longleggedhair
    • #2
    • 8th Feb 18, 5:19 PM
    • #2
    • 8th Feb 18, 5:19 PM
    I would request they send a letter with the correct policy in writing. Phone conversations are easily denied.
    • xylophone
    • By xylophone 8th Feb 18, 10:03 PM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #3
    • 8th Feb 18, 10:03 PM
    • #3
    • 8th Feb 18, 10:03 PM
    I would write to SW.

    Dear Sir,

    I refer to your letter of (date) (copy attached) and a telephone conversation on (date) with a Customer Service Representative (name if you have it).

    I queried the following sentence:

    If you took out your plan before 1 July 1994, we won't apply an MVR if you take your pension benefits, or transfer the value of your plan, from the EARLIER of your selected retirement date and age 60.

    I was advised that this is not correct as in fact benefits may be taken (or transferred) without MVR at any time between the policy holder's 60th and 75th birthday.

    Please confirm (or otherwise clarify) the position in regard to my pension.

    Yours faithfully,
    • Malthusian
    • By Malthusian 9th Feb 18, 1:49 AM
    • 4,084 Posts
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    Malthusian
    • #4
    • 9th Feb 18, 1:49 AM
    • #4
    • 9th Feb 18, 1:49 AM
    Where's the error? The rep said you could take your pension MVR-free from age 60. The letter said you could take your pension from the earlier of normal retirement age or age 60, i.e. 60. They sound in agreement to me.

    The detail about age 75 is incidental. The plan probably cannot run past age 75 due to the old rules that used to force you to take your pension in some form before 75. But surely you aren't planning to keep it that long anyway.
    • rubble2
    • By rubble2 9th Feb 18, 9:36 AM
    • 294 Posts
    • 49 Thanks
    rubble2
    • #5
    • 9th Feb 18, 9:36 AM
    • #5
    • 9th Feb 18, 9:36 AM
    Thanks for the replies, I will send a letter asking for clarification as suggested.

    Malthusian, Maybe I am reading it differently to you but to me it is saying that the MVR free guarantee applies if I take the benefits at age 60 as that is earlier than my selected retirement date, it suggests that taking the benefits after age 60 does not attract the MVR free guarantee.
    • greenglide
    • By greenglide 9th Feb 18, 9:46 AM
    • 3,096 Posts
    • 2,015 Thanks
    greenglide
    • #6
    • 9th Feb 18, 9:46 AM
    • #6
    • 9th Feb 18, 9:46 AM
    This is quite precise.

    If you took out your plan before 1July 1994 (which you did)

    then

    they wont apply an MVR from the EARLIER of your selected retirement date and age 60.

    Your selected retirement date is 65 so 60 is the earlier date.

    You shouldnt have had a MVR from age 60, you are still over 60!.
    • Malthusian
    • By Malthusian 9th Feb 18, 10:42 AM
    • 4,084 Posts
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    Malthusian
    • #7
    • 9th Feb 18, 10:42 AM
    • #7
    • 9th Feb 18, 10:42 AM
    Malthusian, Maybe I am reading it differently to you but to me it is saying that the MVR free guarantee applies if I take the benefits at age 60 as that is earlier than my selected retirement date, it suggests that taking the benefits after age 60 does not attract the MVR free guarantee.
    Originally posted by rubble2
    I don't see that. It says "we wont apply an MVR... from [bla bla age 60]" (my emphasis). It states clearly that it applies from 60 (or your normal retirement age if earlier, which doesn't apply), not just at 60. It really seems perfectly clear to me.
    • xylophone
    • By xylophone 9th Feb 18, 10:58 AM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #8
    • 9th Feb 18, 10:58 AM
    • #8
    • 9th Feb 18, 10:58 AM
    It really seems perfectly clear to me.
    This does not seem to me to be the point.

    The point is that the recipient of the letter did not understand it, sought clarification by phone and was still not perfectly comfortable after receiving it.

    In the circumstances, for the OP's peace of mind, the thing to do was to write to SW and have them "dot the i's and cross the t's"?
    • Spelunthus
    • By Spelunthus 9th Feb 18, 1:09 PM
    • 87 Posts
    • 84 Thanks
    Spelunthus
    • #9
    • 9th Feb 18, 1:09 PM
    • #9
    • 9th Feb 18, 1:09 PM
    "MVR-free guarantee" - hmm... Some of us remember the Equitable Life "Guaranteed Annuity Rate" fiasco. Such "guarantees" have little value, if the Company chooses not to honour them.
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