Group Personal Pension Plan Policy terms and conditions

Transcription

1 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page 1 Group Personal Pension Plan Policy terms and conditions hsbc.co.uk Issued by HSBC Life (UK) Limited We are a member of the HSBC Group, one of the world s largest banking and financial services organisations with around 9,500 offices in 76 countries and territories. HSBC Bank plc, Customer Services Centre: PO Box 1011, Bristol BS99 1GD MCP26723 RET008 09/06 Printed by Greenshires Group Ltd, Leicester. HSBC Life (UK) Limited All Rights Reserved.

2 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page 3 3 Contents section page Important Notes 3 Pension Policy 4 Standard Policy Conditions 4 Interpretation 4 Definitions 4 Instructions to the Company 7 Payment of Contributions 7 Closure of a Fund 8 Allocation of Units 8 Retirement 10 Death 10 Fund Variation 10 Recording Changes 12 Taxation and Legislation 13 Policy Alterations 13 Alteration of Units 13 Limitation of Interest 13 General 14 Contracts (Rights of Third Parties) Act Policy Provisions 14 Lump Sum Retirement Benefits 14 Retirement Pension Open Market Option 14 Benefits on Member s Death 15 Ineligible Contributions 15 Transfer Out of the Policy 15 Payment of Policy Proceeds 15 Pension Sharing on Divorce or dissolution of civil partnership 15 Requirement for Notice 15 Evidence of Age 16 Entitlement to Benefits 16 HM Revenue & Customs Registration 16 Contracting Out 16 Assignment and Surrender 16 Change to Policy Provisions 16 Fund Rules 16 Pension Funds 16 Charges 16 Fund Valuation 17 Creation and Cancellation of Units 17 Suspension of Dealings 17 Application of Income 18 Borrowing Powers 18 Powers to Make Deductions from Funds 18 Important notes This document contains the terms and conditions for a policy or policies issued by HSBC Life (UK) Limited ( the Company ) to provide benefits arising under the HSBC Life (UK) Limited Personal Pension Scheme ( the Scheme ). Please examine this document carefully and keep it in a safe place. Particulars of the policy are set out in the Schedule. The Schedule accompanying this document will specify the policy to which the document relates. The Standard Policy Conditions, the Policy Provisions, the Fund Rules and any Certificates shall apply separately to each policy so specified. Each pension policy shall constitute a separate arrangement to provide benefits under the Scheme. Upon payment under certain circumstances of an Additional Regular Contribution, the payment of a Single Contribution or an alteration to the particulars of the policy, the Company shall issue a Certificate for attachment to the Schedule. Such Certificate shall show details of the Additional Regular Contributions, Single Contribution or alteration as applicable. All references to the Schedule shall where the context requires include all Certificates issued in relation thereto. The Company cannot undertake to issue a duplicate or other substitute policy document. No Schedule or Certificate (if any) relating to this policy should ever be destroyed as its production will be required whenever title to a policy has to be proved.

3 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page Pension Policy The policy is granted by HSBC Life (UK) Limited ( the Company ) to the Member in order to secure the benefits arising under the Scheme for and in respect of the Member. The Company will in consideration of payment of the Contributions shown in the Schedule, pay and administer the lump sum and pension benefits for and in respect of the Member in accordance with this policy and the Rules of the Scheme, to or for the benefit of the Payees and subject to: the Standard Policy Conditions the Policy Provisions the Fund Rules any special conditions stated in the Schedule, and any Certificates issued in respect of the policy The payment of benefits shall not take place until the following have been provided to the Company at its Pensions Administration Centre: evidence of the title of the Payee(s) evidence of the age of the Member or other person or persons claiming benefit; and any other evidence or information which is required by the Company to establish entitlement to benefit. AND IT IS HEREBY DECLARED that the application(s), declaration(s) and any statement(s) made by the Member and his or her Employer (if any) in connection with this policy shall be the basis of the contract evidenced by this policy. The Rules of the Scheme, the Standard Policy Conditions, the Policy Provisions, the Fund Rules, the Schedule and any Certificates are part of the contract between the Company and the Member evidenced by this policy. All amounts payable or receivable shall be paid in the currency of the United Kingdom at the Pensions Administration Centre of the Company in England. The contract evidenced by this policy is subject to the laws of England and Wales. Standard policy conditions 1 Interpretation In any part of this policy or the Standard Policy Conditions, the Policy Provisions, the Schedule, the Certificate(s) (if any), the Fund Rules, any word or expression to which a specified meaning has been attached (including Standard Policy Condition 2) shall bear such specified meaning wherever it may appear and, where the context so admits, the masculine shall include the feminine and the singular shall include the plural and vice versa. In the event of any inconsistency between: (i) any part of this policy or the Standard Policy Conditions, the Policy Provisions, the Schedule, the Certificate(s) if any, the Fund Rules; and (ii) the Rules of the Scheme the Rules of the Scheme shall prevail. Any reference in this policy to any legislation shall, where the context so requires or allows, be deemed to include any statutory modification, extension, re-enactment or revision of that legislation. 2 Definitions The following expressions shall have the following meanings: Additional Regular Contribution Means any additional regular contribution (if any) paid under this policy as shown, under certain circumstances, in a Certificate. Associated Company Means HSBC Bank plc, its parent, each of their respective subsidiaries, any other member of the HSBC group of companies and any external companies appointed to provide investment management services on behalf of the Company. Business Day Means any day other than a Saturday or a Sunday on which HSBC Bank plc is open for retail business in London. Certificate Means any certificate issued by the Company, after the Commencement Date, in certain circumstances on commencement of an Additional Regular Contribution, on payment of a Single Contribution or on any alteration to the particulars of the policy. Any reference in a Certificate to the Member shall, where the context requires, be deemed to include any widow or widower, civil partner dependant, legal personal representatives or legal guardian. Commencement Date Means the date specified in the Schedule as the Commencement Date. Contribution Means a Single Contribution, Regular Contribution, Additional Regular Contribution or Protected Rights Contribution as the context may require. Date of Closure Means the date described as such in Standard Policy Condition. Default Investment Means the Lifestyle Profile or such other investment as determined by the Company or the Employer from time to time. Earnings Index Means the figures shown in the Whole Economy column of the Average Earnings Index as published by the Office for National Statistics. If such index ceases to be published, Earnings Index will mean the corresponding figures shown in a similar or equivalent index. Employer Means the current employer of the Member (if any). Expected Retirement Date Means the date specified in the Schedule as the Member s expected retirement date. Funds Means those investment funds from time to time established and maintained by the Company for the purposes of this and other policies. The references to a Fund mean such one or more of the Funds as the context may require. Further Investment Means the amount(s) specified in the Schedule as being the Single Contribution or Protected Rights Contribution in respect of this policy. Income (in respect of a Fund) Means the interest, dividends, rents or other income received from the underlying assets of the Fund. Initial Investment Means the amount specified in the Schedule as being the Single Contribution in respect of this policy. Management Charge Is described in Fund Rule 2. Member Means an individual who, having satisfactorily completed the formalities of joining the Scheme, has joined the Scheme and is named as the Member in the Schedule. Member s Fund Means the aggregate value of the Ordinary Contribution Fund and the Protected Rights Fund. Ordinary Contribution Account Means the account opened by the Company in its books of account in relation to this policy in accordance with Standard Policy Condition 6 in respect of Regular Contributions, Additional Regular Contributions and Single Contributions. Ordinary Contribution Fund Means the aggregate value at their respective Prices of the Units allocated to the Ordinary Contribution Account on the relevant day determined in accordance with the appropriate Standard Policy Condition or Policy Provision. Paid-Up Policy Means a policy to which Contributions have ceased to be paid, in accordance with Standard Policy Condition 4. The Company may allow Contributions to be made to a Paid-Up policy subject to such terms and conditions as it deems appropriate at that time.

4 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page Payees Means the payees as specified in the Schedule. Pensions Administration Centre Means the Company s Customer Services Centre at PO Box 1011, Bristol, BS99 1GD (or at such other address as the Company may notify to the Member and/or the Employer from time to time). Periodic Investment Means the proportion (as specified in the Schedule and/or any Certificate) of the Contribution to be applied by the Company in accordance with Standard Policy Condition 6. The proportion of the Contribution which will be applied by the Company in respect of new Additional Regular Contributions commencing after the Commencement Date shall be subject to such terms and conditions as may be applied by the Company from time to time. Details of such terms and conditions are available on request from the Company. Price Means in respect of each Fund the price determined in accordance with the Fund Rules at which the Company is prepared notionally to create and cancel units in that Fund on the relevant day. Protected Rights Account / Fund Means the aggregate value at their respective Prices of the Units allocated to the Protected Rights Account on the relevant day determined in accordance with the appropriate Standard Policy Condition or Policy Provision. Protected Rights Contribution Means protected payments as defined in the Rules of the Scheme. These comprise any contracting-out age related rebates received from the National Insurance Contributions Office of HM Revenue & Customs (and the tax relief thereon) and any contracted-out rights included within a transfer payment received from another contracted-out scheme. Regular Contribution Means any regular contribution paid under this policy as shown in the Schedule. Redirection Fund Means the Fund described as such in Clause 5 of these Conditions. Replacement Fund Means the Fund described as such in Clause 5 of these Conditions. Retail Prices Index Means the figures shown in the All Items general index of retail prices as published by the Office for National Statistics. If such index ceases to be published, Retail Prices Index will mean the corresponding figures shown in a similar or equivalent index selected by the Company. Retirement Date Means the date at which pension benefits vest and may be earlier or later than the Expected Retirement Date in accordance with the Rules of the Scheme and Standard Policy Condition 7. Rules of the Scheme Means the rules adopted by deed poll dated 4 February 2004, as amended from time to time. Schedule Means the Schedule issued by the Company to the Member to evidence this policy. Scheme Means the HSBC Life (UK) Limited Personal Pension Scheme. Single Contribution Means any single contribution paid under this policy as shown in the Schedule and/or any Certificate. This includes any transfer payments received from another arrangement in accordance with the Rules of the Scheme, and which represents the Member s accrued rights under that other arrangement. Total Regular Contribution Means the aggregate of all Regular Contributions and Additional Regular Contributions (if any) under this policy. Unit (in respect of each Fund) Means one of the shares of equal value into which the Fund is notionally divided and, where the context so requires, a notional share in the Fund which is allocated to the Ordinary Contribution Account and/or Protected Rights Account. Valuation Date (in respect of a Fund) Means a date on which that Fund is valued in accordance with Fund Rule 3. Words and expressions defined in the Rules of the Scheme shall, unless the context otherwise requires, bear those meanings as amended from time to time when used in this policy. 3 Instructions to the Company All directions, notifications, elections or requests as provided for in this policy should be given in a form prescribed by the Company at its Pensions Administration Centre or at such other place as the Company may from time to time notify to the Member and/or his Employer. Certain directions, notifications, elections or requests must be given in the form prescribed and supplied by the Company. The Company need not (but may, at its sole discretion) act upon any such direction, notification, election or request until it is received in such prescribed form at such place as is notified to the Member and/or his Employer. 4 Payment of Contributions Regular Contributions, Additional Regular Contributions and Single Contributions may be accepted from the Member, and/or his Employer (if any) in accordance with the Rules of the Scheme. Protected Rights Contributions may be accepted from the National Insurance Contributions Office of HM Revenue & Customs, in accordance with the Rules of the Scheme. In certain circumstances it may be possible for the Company to accept contributions made by a third party on the Member s behalf where either: The Member gives a written assurance to the Company that the payment is from his own resources and is being made by the third party for convenience, or The contribution is being made by the third party on the Member s behalf. In both cases the Member must be aware of the payment. Single Contributions, Regular Contributions and/or Additional Regular Contributions may only be accepted by the Company subject to minimum contribution requirements from time to time. Contributions other than transfer payments received from another pension arrangement or from an employer are paid net of tax relief at the basic rate of income tax prevailing at that time. The Company will credit the policy with an amount equivalent to this tax relief on the day contributions are received, except in relation to Protected Rights Contributions where a separate payment is made by the National Insurance Contributions Office of HM Revenue & Customs to cover the basic rate income tax relief (which will be credited to the policy on receipt). The first contribution (whether a Single Contribution and/or Protected Rights Contribution and/or Regular Contribution) is payable as shown in the Schedule.

5 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page If a Regular Contribution and Additional Regular Contribution(s) (if any) in respect of this policy are not paid in full when due, all further Regular Contributions (if any) will no longer be payable and this policy will become a Paid Up Policy. The Company must receive notice in the prescribed form of any election to increase or decrease the total Regular Contribution at least three days before the date from which the variation is to take effect. Single Contributions and/or Protected Rights Contributions may be paid in accordance with the Rules of the Scheme at any time prior to the Retirement Date, or the earlier death of the Member. On a Single Contribution being paid and/or Protected Rights Contributions commencing after the Commencement Date, the Company will issue a Certificate relating to such Single Contribution and/or Protected Rights Contributions. In certain circumstances prescribed by the Company, the Member will be permitted to automatically increase his Regular Contribution by a fixed percentage between 1% and 10% each year. Alternatively, where prescribed by the Company, the Member may elect to have his Regular Contribution increased each year in line with the movement in the Retail Prices Index or the Earnings Index. Increases will be subject to a maximum of 10% per annum in all cases. Should the movement in either the Retail Prices Index or Earnings Index be zero or negative the Regular Contribution will not be changed. In all cases, the increases will be applied once a year at each anniversary following the Commencement Date (known as the Increase Date ), and will be known as an Automatic Increase. Should the Member increase his Regular Contribution at any other time the Automatic Increase will be pro-rated accordingly from the time the increase is applied until the next Increase Date. Should the Member wish to cancel any Automatic Increase, notification must be received by the Company at least seven Business Days before the Increase Date, unless the instruction is received via the Internet, in which case this must be received at least three Business Days before the Increase Date. 5 Closure of a Fund The Company reserves the right to close a Fund at any time (the Date of Closure) or to decide that with effect from a specified date no further contributions should be allocated to a Fund. In either of these circumstances the Company will give at least 60 days prior notice to the Member if Units in the relevant Fund are allocated to the Member s Fund. In the event of closure of a Fund, any units in the Member s Fund allocated to the relevant Fund will be cancelled on the Date of Closure and will be replaced by Units of equivalent value at the Price in one or more other Funds (a Replacement Fund ). The Member may instruct the Company as to the choice of Replacement Fund or Funds, subject to such instruction being received by the Company at least 15 days prior to the Date of Closure. Unless the Member does so, the Replacement Fund or Funds will be the Fund or Funds specified by the Company in a notice issued to the Member. Where the Company decides that with effect from a specified date no further contributions should be allocated to a Fund, the Company shall apply the further contributions so as to allocate Units in another Fund or Funds (a Redirection Fund ). The Member may instruct the Company as the choice of Redirection Fund or Funds subject to such instruction being received by the Company at least 15 days prior to the Date of Closure or the specified date as the case may be. Unless the Member does so, the Redirection Fund or Funds will be the Fund or Funds specified by the Company in a notice issued to the Member. 6 Allocation of Units Upon the Commencement Date, the Company shall open the Ordinary Contribution Account and/or the Protected Rights Account in respect of the Member. Regular Contributions and Additional Regular Contributions The Company shall upon receipt of each Regular Contribution and Additional Regular Contribution(s) (if any) apply the Periodic Investment by notionally allocating to the Ordinary Contribution Account the number of Units including parts of Units (rounded to two decimal places) which would be secured by the Periodic Investment at the Price(s) on the relevant day as defined below or if later the first Business Day following the termination of any suspension of dealing in Units in a Fund in force on the relevant day. Such allocation is made in accordance with the selection of Funds made by the Member as shown in the Schedule or any redirection made under Standard Policy Condition 9. Should the Company not receive an instruction from the Member with regard to a selection of Funds, the Company shall invest each Regular Contribution and Additional Regular Contribution in the Lifestyle Profile by default, until the Company receives an instruction from the Member to invest in alternative Funds. For the purposes of this condition, relevant day means: (i) the current Business Day if the Regular Contribution and Additional Regular Contribution(s) (if any) are received by the Company and cleared into the bank account designated by the Company for the purpose of receiving such contributions on or before 9.30am on a Business Day; or (ii) the next Business Day if the Regular Contributions and Additional Regular Contributions (if any) are received by the Company and cleared into the bank account designated by the Company for the purpose of receiving such contributions after 9.30am on a Business Day; or (iii) if later, the first Business Day following the termination of any suspension of dealing in Units in a Fund in force on the relevant day. Single Contribution Upon receipt of a Protected Rights Contribution(s) the Company shall notionally allocate to the Ordinary Contribution Account the number of Units including parts of Units (rounded to two decimal places) at the Price on the relevant day as defined below: (i) the current Business Day if the Single Contribution is received by the Company and cleared into the bank account designated by the Company for the purpose of receiving such contributions on or before 9.30am on a Business Day; or (ii)the next Business Day if the Single Contribution is received by the Company and cleared into the bank account designated by the Company for the purpose of receiving such contributions after 9.30am on a Business Day: or (iii) if later, the first Business Day following the termination of any suspension of dealing in Units in a Fund in force on the relevant day. Such allocation is made in accordance with the selection of Funds made by the Member as shown in the Schedule. Should the Company not receive an instruction from the Member with regard to a selection of Funds, the Company shall invest each Single Contribution in the Lifestyle Profile by default, until the Company receives an instruction from the Member to invest in alternative Funds. Protected Rights Contribution Upon receipt of a Protected Rights Contribution, the Company shall notionally allocate to the Protected Rights Account the number of Units including parts of Units (rounded to two decimal places) which would be secured at the Price(s) on the relevant day as defined below: (i) the current Business Day if the Protected Rights Contribution is received by the Company and cleared into the bank account designated by the Company for the purpose of receiving such contributions on or before 9.30am on a Business Day; or

6 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page (ii)the next Business Day if the Protected Rights Contribution is received by the Company and cleared into the bank account designated by the Company for the purpose of receiving such contributions after 9.30am on a Business Day; or (iii) if later, the first Business Day following the termination of any suspension of dealing in Units in a Fund in force on the relevant day. Such allocation is made in accordance with the selection of funds made by the Member as shown in the Schedule or any redirection made under Standard Policy Condition 9. Should the Company not receive an instruction from the Member with regard to a selection of Funds, the Company shall invest each Protected Rights Contribution in the Lifestyle Profile by default, until the Company receives an instruction from the Member to invest in alternative Funds. The Protected Rights Account will be segregated from the Ordinary Contribution Account so as to ensure that the value of the Protected Rights Fund can be calculated at any time. 7 Retirement (i) Ordinary Contribution Fund The Member may, subject to the consent of the Company, elect by giving notice to the Company in a form prescribed by the Company, to have a Retirement Date other than the Expected Retirement Date in accordance with the Rules of the Scheme and subject to the Standard Policy Conditions and Policy Provisions. The Ordinary Contribution Fund shall be applied to provide benefits at the Retirement Date in accordance with the Rules of the Scheme and subject to the Standard Policy Conditions and Policy Provisions. If the Member elects to have a later Retirement Date, Contributions may be continued to the later Retirement Date. If an earlier Retirement Date is agreed, Contributions may not continue to be paid beyond that Retirement Date. If an earlier or later Retirement Date is agreed then this date shall replace the Expected Retirement Date and references to the Retirement Date shall in these circumstances be understood to be references to the earlier or later Retirement Date (as applicable) so agreed. (ii) Protected Rights Fund The Member may request, by giving due notice to the Company in a form prescribed by the Company, to have an earlier Retirement Date in respect of the Protected Rights Fund, subject to the Company s agreement, in accordance with the Rules of the Scheme and subject to the Standard Policy Conditions and Policy Provisions. At the Retirement Date the Protected Rights Fund shall be applied to provide benefits in accordance with the Rules of the Scheme and subject to the Standard Policy Conditions and Policy Provisions. 8 Death Following notification to the Company of the Member s death before his Retirement Date, the Ordinary Contribution Fund and/or the Protected Rights Fund shall be applied to secure benefits in accordance with the Rules of the Scheme and subject to the Standard Policy Conditions and Policy Provisions. 9 Fund Variation (i) Reallocation between Funds Subject to Standard Policy Condition 10, on receipt of a direction from the Member in the prescribed form the Company shall: (a) cancel some or all of the Units allocated to the Ordinary Contribution Account in respect of a specified Fund at the Price applying to Units in that Fund on the relevant day and replace them in that Account with Units of another Fund or Funds as specified in the direction at the Price of Units in that Fund on the relevant day; and/or (b) cancel some or all of the Units allocated to the Protected Rights Account in respect of a specified Fund at the Price applying to units in that Fund on the relevant day and replace them in that Account with Units of another Fund or Funds as specified in the direction, at the Price applying to Units in that Fund on the relevant day. Such cancellation and replacement will take place on the relevant day being; (i) the current Business Day if the direction from the Member is received by the Company via Personal Internet Banking on or before 9.30am on a Business Day; or (ii) the next Business Day if the direction from the Member is received by the Company by post, telephone or facsimile at any time; or via Personal Internet Banking after 9.30am on a Business Day or on any day which is not a Business Day or (iii) if later, the first Business Day following the termination of any suspension of dealings in Units in force on that Business Day. Such transactions will be effected by taking the value of the cancelled Units at the Price on the relevant day. The value of the cancelled Units at the Price on the relevant day shall be applied in the allocation of Units in the other Fund or Funds at their Price on the relevant day. The Company shall not be bound to accept a direction if the proportion of the amount to be applied in the allocation of Units in any Funds to the Ordinary Contribution Account and/or Protected Rights Account is not a whole percentage point or multiple thereof. The Company will not accept any direction which would require the reallocation of Units to a Fund, if the direction is received within 15 days of the Date of Closure for that Fund. The Company reserves the right to reject any direction in whole or in part in circumstances where it deems appropriate. (ii) Redirection of Future Regular Contributions and Additional Regular Contributions. If the Member gives a direction in a prescribed form the Company will amend the proportion of the future Regular Contributions and Additional Regular Contributions to be applied in the allocation of Units of a particular Fund to the Ordinary Contribution Account. Such amendment will take effect as follows: (a) if the direction is received less than three Business Days before the next due date of the Regular Contribution, from the due date falling immediately after the next due date; or (b) if the direction is received three Business Days or more before the next due date of the Regular Contribution, from that next due date. The Company shall not be bound to accept a direction if the proportion of the Periodic Investment to be applied in the allocation of Units in any Fund to the Ordinary Contribution Account is not a whole percentage point or multiple thereof. The Company will not accept any direction which would require the future allocation of Units in a Fund, if the direction is received within 15 days of the Date of Closure for that Fund. (iii) Redirection of Future Protected Rights Contributions. If the Member gives a direction in a prescribed form, the Company will amend the proportion of the Amount Allocated in respect of future Protected Rights Contributions to be applied in the allocation of Units of a particular Fund to the Protected Rights Account. Such amendment will take effect from the date on which that Protected Rights Contribution is received except if the direction is received less than 15 days before the date on which a Protected Rights Contribution is next received. In such cases the amendment will take effect on receipt of the next Protected Rights Contribution.

7 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page The Company will not accept any direction which would require the future allocation of Units in any Fund to the Protected Rights Account if the proportion of the amount to be applied in the allocation of Units in any Fund to the Protected Rights Account is not a whole percentage point or multiple thereof. The Company will not accept any direction which would require the future allocation of Units in a Fund, if the direction is received within fifteen days of the Date of Closure for that Fund. (iv) Lifestyle Profile If all or part of a Member s Regular, Additional Regular or Single Contributions and/or Protected Rights Contributions are invested in the Lifestyle Profile, such Contributions will be invested in the Global Equity Index Tracker Fund until ten years before the Member s Retirement Date. Funds in the Ordinary Contribution Account and/or the Protected Rights Account will then be reallocated by the Company over the next ten years so that 25% is held within the Cash Fund and 75% is held within the UK Aggregate Fixed Interest Fund at the Member s Retirement Date All Regular, Additional Regular or Single Contributions and/or Protected Rights Contributions are redirected in similar proportion over this period. If the Member does not retire at his Expected Retirement Date, and does not agree with the Company in accordance with Standard Policy Condition 7 an alternative Retirement Date, and is invested in the Lifestyle Profile, the Company reserves the right to alter the Retirement Date at its discretion and to continue to invest 75% of the Ordinary Contribution Account and/or the Protected Rights Account in the UK Aggregate Fixed Interest Fund and 25% of the Ordinary Contribution Account and Protected Rights Account in the Cash Fund. The Company will inform the Member if such alteration takes place. If the Member agrees an alternative Retirement Date with the Company in accordance with Standard Policy Condition 7, and is invested in the Lifestyle Profile, the Company will adjust the Ordinary Contribution Account and/or the Protected Rights Account so that the reallocation of holdings and the redirection of future Regular, Additional Regular, Single and/or Protected Rights Contributions will take effect so that by the alternative Retirement Date, the Ordinary Contribution Account and/or Protected Rights Account are invested 75% in the UK Aggregate Fixed Interest Fund and 25% are invested in the Cash Fund. The Company will inform the Member if such alteration takes place. The above is the Default Investment operated by HSBC Life (UK) Limited for the purposes of this policy and may be altered at any time as determined by the Company, and is subject to any suspension of dealings in Units in a Fund in force when an investment or redemption would otherwise be made. A different Lifestyle Profile other than the default referred to above, may be selected by the Employer and agreed with the Company in accordance with the procedures determined by the Company from time to time. Such alternative profiling may be designed in accordance with the Standard Policy Conditions and the Policy Provisions taking account of the range of funds available, and the reallocation period and reallocation percentages as administered by the Company from time to time. Any such alternative lifestyle profiling shall be detailed in the Schedule or in an certificate. 10 Recording Changes If reallocations or redirections take place in accordance with Standard Policy Condition 9, the Company shall record the revised number of Units allocated to the Ordinary Contribution Account and/or Protected Rights Account without endorsement to this policy. In the case of a reallocation under Standard Policy Condition 9 (i) the revised number of Units will be notified by the Company to the Member. In the case of an allocation under Standard Policy Condition 6 or a redirection under Standard Policy Condition 9 (ii) or 9 (iii) the member will be notified by the Company at intervals of no more than 12 months as to the number of units allocated to the Ordinary Contribution Account and/or Protected Rights Account. 11 Taxation and Legislation (i) The Company shall be entitled to make such deductions (of actual or estimated amounts) as are appropriate from any of the benefits payable under this policy on account of any tax, duty, levy or other imposition which may from time to time be imposed by any legislation, order, regulation or otherwise upon the Company or upon the Payees or persons claiming benefit and for which the Company may be liable to account in respect of the provision of any of the aforesaid benefits, and in respect of charges levied against the Company under the Financial Services and Markets Act 2000 (and any rules and regulations made under that Act). (ii) In the event of any change in the law or HM Revenue & Customs practice becoming effective after the Commencement Date in relation either to the Company or the benefits payable under this policy in respect of which a deduction by the Company should be permitted but which is not so permitted by these Standard Policy Conditions or the Policy Provisions such modification of these Standard Policy Conditions or the Policy Provisions shall be made by the Company as the Company shall consider appropriate to take account of such change. 12 Policy Alterations (i) The Scheme is subject to HM Revenue & Customs and other legal and regulatory requirements and practice. The Company reserves the right to amend any provisions of this policy by notice to the Member to take account of these requirements and practice and to retain HM Revenue & Customs approval. The notice will be given as soon as possible after the amendments have been made. (ii) Where a change occurs of a legal or regulatory nature which affects the right of the Company to invest in assets of its own choosing or in circumstances which in the Company s opinion renders it impractical or impossible to give effect to all or any of the terms of this policy the Company may by notice to the Member make such amendments to the terms of this policy as the Company considers appropriate to take account of the change. The notice where practical will be given at least 20 days before the amendments are made but otherwise will be given as soon as possible either before or after the amendments have been made. (iii) Subject to any applicable legal or regulatory requirements or practice (including in particular the requirements of HM Revenue & Customs) the Company may make any other amendments to the terms of this policy by 40 days prior notice to the Member. (iv) Amendments made under (i) above but not (ii) or (iii) may be retrospective. 13 Alteration of Units Units in one or more of the Funds may be consolidated, subdivided or otherwise changed, subject to notification being given to the Member at least 30 days prior to such change. The appropriate alteration shall be made to Units in the Ordinary Contribution Account and/or Protected Rights Account so as to reflect the consolidation, subdivision or change, as the case may be. 14 Limitation of Interest The allocation of Units to the Ordinary Contribution Account and/or Protected Rights Account shall be notional only and shall operate solely for the purpose of determining the value of the benefits under this policy. The assets and Income of the Funds shall

8 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page remain the property of the Company or an Associated Company at all times. Accordingly, this policy does not confer any title to or any beneficial interest in any investments, units, cash or other property in any insurance or any other assets of the Company or any Associated Company. 15 General All notices shall be given in writing, and shall be considered valid notwithstanding any accidental failure to notify a particular policyholder, or if a policyholder does not receive a notice properly sent to him. Where a number of identical policies have been effected by the Member with the same Commencement Date, the exercise of any option relating to Payment of Contributions (Standard Policy Condition 4) or Fund Variation (Standard Policy Condition 9), shall be made identically in respect of each such policy unless the Company allows otherwise. 16 Contracts (Rights of Third Parties) Act 1999 No person has rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any provision of this policy but this does not affect any right or remedy which exists or is available apart from that Act. Policy provisions 1 Lump Sum Retirement Benefits At Retirement Date the Member may elect to receive part of the value of the appropriate part of the Ordinary Contribution Fund as a lump sum in accordance with and subject to the Rules of the Scheme. After payment of any lump sum the remainder of the Member s Ordinary Contribution Fund and/or the Member s Protected Rights Fund shall be applied to provide benefits in accordance with Policy Provision 2. Where the Member s Fund is smaller in value than the triviality threshold prescribed by HM Revenue & Customs, it may be possible for the whole of the Member s Fund to be commuted for a lump sum and paid to the Member (after deduction of tax). The Company will advise the Member at the time if this is permissible. 2 Retirement Pension Open Market Option At Retirement Date the value of the Member s Fund, (less any lump sum paid in accordance with the Rules of the Scheme) shall be applied in the purchase of benefits from the Company or another insurer willing to accept such monies for the Member and for any widow, widower, legal partner and/or dependant thereof as the case may be, in accordance with the Rules of the Scheme. The provision of any pension from the Company will depend upon the annuity rates of the Company at the time the pension is to commence and shall be subject to the terms and conditions governing the issue of annuities by the Company from time to time. The terms and conditions in question shall be made available to the Member on request. Benefits in respect of the Ordinary Contribution Fund (if any) and the Protected Rights Fund (if any) may be transferred to different insurers in accordance with the Rules of the Scheme for the purpose of providing an annuity (known as the Open Market Option). Where the whole of the Member s Fund is transferred to another insurer no benefit will thereafter be payable under this policy. If only part of the Member s Fund is transferred to another insurer, any benefits payable under this policy will be the benefits provided by the value of the Member s Fund after such transfer. 3 Benefits on Member's Death Subject to the provisions in the Rules of the Scheme which apply to pensions purchased on the death of the Member from the value of the Ordinary Contribution Fund and/or the Protected Rights Fund for a widow, widower, legal partner and/or dependant of the Member, on the death of the Member, an annuity shall be purchased in accordance with the procedures referred to in Policy Provision 2. Subject to the provisions of the Rules of the Scheme which may restrict the payment of the Member s Protected Rights Fund as a lump sum, where any lump sum is payable on the death of the Member, it shall be paid by the Company. Where the whole of the Member s Fund is paid over as aforesaid, no benefit will thereafter be payable under this policy. If only part of the Member s Fund is paid over as aforesaid, any benefits payable under this policy will be the benefits provided by the value of the Member s Fund after such payment. 4 Ineligible Contributions Where a Contribution is not allowed under the Rules of the Scheme, the amount to be repaid to the Member and/or his Employer and/or a third party (if any) will be the value of the Units (if any) purchased by that Contribution, based on the Price at the time of repayment. This is subject to the restriction that the amount of the repayment will not exceed the ineligible Contribution. 5 Transfer Out of the Policy A Member may elect that the value of the Units in the Ordinary Contribution Fund and/or Protected Rights Fund on the relevant day be transferred to another scheme or schemes of which he has become a member in so far as such transfer is permitted by and in accordance with the Rules of the Scheme. Where the whole of the Member s Fund is transferred as aforesaid, no benefit will thereafter be payable under this policy. If only part of the Member s Fund is transferred as aforesaid, the relevant number of Units to the value of the desired transfer will be cancelled. Any benefit payable under this policy will be the benefits provided by the value of the Member s Fund after such transfer. 6 Payment of Policy Proceeds For the purpose of policy provisions 1, 2, 3, and 5, payment will be made on the relevant day which means the Business Day following that on which the Company has received all such evidence or information and completed all such procedures as it reasonably requires in order to make such payment in accordance with the Rules of the Scheme following receipt of a completed application or if later, the first Business Day following the termination of any suspension of dealings in units in force on that Business Day. 7 Pension Sharing on Divorce or dissolution of civil partnership Where a pension sharing order is made in respect of a Member s rights under the Policy and the Company is obliged to make a payment to discharge its liability in respect of a pension credit (within the meaning of Section 29 of the Welfare Reform and Pensions Act 1999), then Units credited to the Member s Account(s) will be cancelled as necessary and any benefits payable under the policy will be the benefits provided by the value of the Member s Fund after such payment. The Company may, at its discretion, charge for the implementation of such pension sharing orders and earmarking orders in accordance with Sections 24 or 41 of the Welfare Reform and Pensions Act 1999 by cancelling Units credited to the Member s Accounts. The Member will be advised by the Company at the time if any such charges are to be applied. 8 Requirement for Notice The exercise of any option or choice

9 26723 Group Personal Pension T & C's 11/10/06 4:25 am Page contained in the Rules of the Scheme or in these Policy Provisions shall be subject to notice being given to the Company by the Member or other relevant person and, where the Company so requires, to this policy being produced to the Company for endorsement. Subject to the exercise of any such option or choice, the Company shall provide and/or arrange for the provision of benefits in accordance with the Rules of the Scheme and the terms of this policy. 9 Evidence of Age The Company requires that evidence of age be produced by the Member or other relevant person in order to establish entitlement to benefits. If the date of birth of the member and/or other relevant person has been incorrectly stated the benefits of this policy may be adjusted by the Company accordingly. 10 Entitlement to Benefits No payment of any benefit (including instalments of an annuity, if applicable) under this policy shall be made without production of proof of the existence of the person entitled thereto on the date in respect of which any payment is due and/or is to be made. 11 HM Revenue & Customs Registration This policy is issued pursuant to the provisions of the Scheme which is registered with the Board of HM Revenue & Customs in accordance with the provisions of Part IV of the Finance Act During such time as the Company determines that the Scheme is to remain so registered, no alteration of the terms of this policy as could prejudice such registration will be made. The Company shall be under no obligation to (but nevertheless may) accept further Contributions under this policy if: the Scheme ceases to be registered by the Board of HM Revenue & Customs; or If any Contributions shall have been erroneously accepted by the Company on or after the aforementioned date, the Company shall be entitled to return such Contributions which shall be regarded as unpaid. 12 Contracting Out An Appropriate Scheme Certificate has been issued in respect of the Scheme by the National Insurance Contributions Office of HM Revenue & Customs under the Pension Schemes Act Where the Scheme is the Member s chosen scheme (within the meaning of the Pension Schemes Act 1993) the Rules of the Scheme impose restrictions on the benefits arising under this policy resulting from Protected Rights Contributions. 13 Assignment and Surrender Save as may be provided for under the terms of this policy (or as may otherwise be permitted by the Company in accordance with applicable legal and regulatory requirements), neither this policy nor any of the benefits may be assigned or surrendered, and any attempt to do so shall be void. 14 Change to Policy Provisions The Company may waive or modify any of these Policy Provisions by the issue of a certificate signed by an authorised official. Fund Rules 1 Pension Funds The selection of investments for each Fund (and all investment management, custody and related arrangements) will be made by the Company in accordance with its published investment strategy. The Company may at any time without the consent of the Members amend the investment strategy of a Fund provided that the nature of any substantial amendment has been previously notified to the Members. 2 Charges The Company shall deduct from each of the Funds a Management Charge as set out in the Member s Policy Schedule. The Management Charge will be deducted daily using the most recently available valuation under Fund Rule 3. The Company reserves the right to alter the frequency with which the Management Charge is deducted and/or the level of the charge. The Company shall notify the Member of a variation in the amount of charge by giving the Member 30 days prior notice in writing of such variation. All rounding adjustments made in accordance with these Fund Rules shall accrue to the Company. 3 Fund Valuation Each Fund will be valued at intervals of not more than one month, the date of each valuation being a Valuation Date. Where the assets of a Fund are securities listed on a recognised stock exchange the market prices will be determined by reference to the most recent quoted prices that can practicably be taken into account in the valuation. Where the assets of a Fund are not securities listed on a recognised stock exchange and are not shares of an authorised Open Ended Investment Company the Company shall obtain such independent professional advice as is necessary in order to calculate the Price of the Units on a reasonable basis determined by the Company. 4 Creation and Cancellation of Units Units may only be created in a Fund where assets equal in value to the number of Units created are added to the Fund. For the purpose of this Fund Rule the value of assets added to the Fund shall not be less than the product of: (i) the number of Units being created including parts of Units (rounded to two decimal places): and (ii) their Price on the relevant day Conversely, except as provided for by Fund Rule 8, assets may only be withdrawn from a Fund if Units equal in value to the value of such assets are cancelled. For the purposes of this Fund Rule the value of assets withdrawn from the Fund shall not be greater than the product of: (i) the number of Units being cancelled including parts of Units (rounded to two decimal places); and (ii) their Price on the relevant day. 5 Suspension of Dealings The Company is empowered to suspend at any time the creation and cancellation of Units in a Fund on any day (subject at all times to a limit for any one suspension period of 14 consecutive Business Days in aggregate) if: (i) during any period any recognised investment exchange on which a substantial part of the investments comprised in a Fund is quoted listed or dealt in is closed or if dealings on any such exchange is suspended or (ii) breakdowns occur in the means normally employed in ascertaining the value of a Fund s assets or (iii) for any other reason the value of a substantial part (in the Company s opinion) of the assets of a Fund cannot reasonably be ascertained or (iv) circumstances exist as a result of which (in the Company s opinion) it is not reasonably practical for the Company to realise or dispose of any part of the property of a Fund or the disposal or valuation of a Fund s investments is not reasonably practicable without this being seriously detrimental to the interests of policyholders or (v) the remittance of funds which will or may be involved in the realisation of or the payment of investments cannot (in the Company s opinion) be carried out without undue delay and at normal rates of exchange or (vi) such other circumstances exist as a result of which (in the Company s opinion) such suspension is desirable and necessary and will not adversely affect policyholders to any substantial extent. An exception applies for a Fund or Funds investing in real property. The Company may defer instructions to switch or redeem investments as real property within the Fund may not always be readily saleable. During periods when it is not readily saleable the Company may defer the cancellation of Units for up to six months.