Policy Provisions. CanRetire. Pension Investment Plan

Transcription

1 Policy Provisions CanRetire Pension Investment Plan

2 Contents Sections Page number 1. Introduction Interpretation and Definitions Premiums Funds and Units Fund switching Charges When benefits can be taken Your benefit options Surrenders and withdrawals HM Revenue & Customs limits on benefits Death benefits Transferring out of the Scheme Divorce or dissolution of a civil partnership Cancellation Surrender, assignment and lump sums Altering the Policy Claims General information When we may delay fund switching and paying claims Queries and complaints The Financial Services Compensation Scheme (FSCS).. 13 CanRetire: Pension Investment Plan Policy Provisions Page 2 of 16

3 1. Introduction The Pension Investment Plan (referred to in these provisions as the Policy ) is made up of one or more Elements. The Policy is issued by Canada Life Limited. The Policy is subject to the Rules of the Scheme. You can ask us for a copy of the Rules. These provisions, any application, the First Policy Schedule, any Additional Policy Schedule and any Endorsements together set out the detailed terms of the contract between you and us. 2. Interpretation and Definitions 2.1 Interpretation References to, Canada Life, we, us and our, mean Canada Life Limited. References to you and your mean the Member shown in the First Policy Schedule and in any Additional Policy Schedule. References to any act or statutory provision are references to that act or provision as amended or replaced from time to time. The singular includes the plural and the plural the singular. 2.2 Definitions We start certain expressions with a capital letter to remind you that you can look up their meaning here Act means the Finance Act 2004; Additional Policy Schedule means the separate schedule issued when an Additional Premium is accepted and for which a separate Element is set up under the Policy. It contains specific information relevant to the Additional Premium; Additional Premium means a contribution paid by you or your employer or any transfer payment we receive after the Policy Date; Adviser Charge where applicable, means the fee charged by a professional adviser in relation to the Policy or any other advice or service provided which has been arranged in advance with your professional adviser which we have agreed to facilitate as a payment from the Policy; Amount Invested means the amount of a Premium applied to an Element within the Policy and is stated in the First Policy Schedule and in any Additional Policy Schedule; Bid Price is the price we will use to credit or cancel Units from the Policy. See section 4.5 for more details; Elements means each of the separate, identifiable arrangements set up under the Policy; Endorsement means a written record of any change to the Policy made by us; External Fund means any unit linked fund that is not managed by us or another company within the Canada Life group but instead is linked to funds of external companies; First Policy Schedule means the first schedule issued when the first Premium is accepted in order to set up the Policy. It contains specific information relevant to the first Premium and the Policy; Fund means any Internal Fund or External Fund offered within the Canada Life Series 5 Pension Funds. Each fund is a separate and identifiable fund; HMRC means HM Revenue & Customs as amended or replaced; Internal Fund means any unit linked pension fund that is managed by us, or another company within the Canada Life group; Member means the person for whom the benefits under the Policy are intended and is stated in the First Policy Schedule and in any Additional Policy Schedule; Nominated Professional Adviser means the professional adviser you have authorised to act on your behalf; Normal Minimum Pension Age means age 55 or such other age specified by HMRC; Notification Date means the date we receive notification of your death at our Registered Office; Payment Date means the date we apply any Additional Premium to the Policy. It is stated on the Additional Policy Schedule; Policy means this Pension Investment Plan; Policy Date means the date the Policy started. It is stated in the First Policy Schedule; Premium means any contribution paid by you or your employer, or any transfer payment we receive. The type and the amount of each premium invested in the Policy are stated under Amount Invested in the First Policy Schedule and in any Additional Policy Schedule; Registered Office means Canada Life Place, Potters Bar, Hertfordshire, EN6 5BA; Registered Pension Scheme means a pension scheme that is registered with HMRC under Part IV of the 2004 Act; Rules means the rules of the Scheme as amended from time to time; Scheme means the CanRetire Personal Pension Scheme; CanRetire: Pension Investment Plan Policy Provisions Page 3 of 16

4 Scheme Administrator means Canada Life Limited or its successors in title; Selected Retirement Age means the age you first wish to receive benefits from the Policy as stated in your initial application. It is shown in the First Policy Schedule; Set Up Charge means the one-off charge for setting up the Policy. It is stated in the First Policy Schedule; UK means the United Kingdom; Uncrystallised Funds means the amount of any pension fund that has not yet been used to provide a benefit or allocated to provide an income. Units means the units of your chosen Fund. It is one of the equal parts into which the Fund is notionally divided for the purpose of recording the benefits that are due to you. See section 4 for more details; Valuation Day means the day we calculate the Value of the Units in each Fund in order to process certain requests, pay claims and to carry out the normal functions of the Policy. Unless stated otherwise in these provisions, the Valuation Day will be the first Working Day after we have received our requirements (see section 17) and have accepted the request or claim. The Valuation Day may have to be delayed under sections 4.4 and 19; Value of the Units means the number of Units held on the Policy on the Valuation Day multiplied by the Bid Price of the Units on the same Valuation Day; Working Day means a day other than a Saturday, Sunday or a public holiday in the UK. Where the Fund is domiciled, managed, administrated, operated or controlled in a country other than the UK, working day shall not include a public holiday in that country. 3. Premiums 3.1 General The Premium may be any of the following: (a) a single contribution paid by you or by your employer at any time before you reach age 75, but not on or after it; and (b) a transfer-in payment of Uncrystallised Funds from another Registered Pension Scheme paid at any time. All Premiums must be paid in the currency of the UK by cheque or direct credit. All Premiums must be at least the minimum amount that we will accept at the time of the proposed payment. You can contact our Registered Office for further details. Where the whole or part of any Premium is your personal contribution it will be shown in any schedule we issue as the Member contribution. The amount stated will assume that the total contribution has been received, including the basic rate of tax relief from HMRC. In the event that your personal contribution or any part of it does not qualify for tax relief, we will make a refund of that amount and reduce the number of Units held on the Policy accordingly. 3.2 First Premium and First Policy Schedule We will set up an Element under the Policy for the first Premium we receive, which may be one or more of the following: (a) a personal contribution paid by you only; (b) a contribution paid by your employer only; (c) contributions paid by you and your employer at the same time; and (d) a transfer-in payment. We will issue the First Policy Schedule stating the Amount Invested and type of Premium received. It will state the amounts of your personal contribution and that of your employer if both were received at the same time. 3.3 Additional Premiums and Additional Policy Schedule We will set up a further Element under the Policy for each Additional Premium we receive. We will issue an Additional Policy Schedule for each further Element we set up under the Policy stating the Amount Invested and the type of Premium received. It will state the amounts of your personal contribution and that of your employer if both were received at the same time. 4. Funds and Units 4.1 Purpose The purpose of the Funds and Units is to provide a way for us to calculate the value of the benefits payable to or in respect of you from the Policy. All Funds are divided into Units of equal value. Each Unit is a notional share of the Fund. The reference to the Funds and Units are made solely to calculate the benefits given by a policy. We may create additional Units or cancel existing Units. 4.2 General information about the Funds The Policy holds Units in Canada Life Series 5 Pension Funds. Within Canada Life Series 5 Pension Funds there are Internal Funds and External Funds. The difference between the two is the type of asset that they invest in and the ownership of the underlying assets that make up the Funds. We, or another company within the Canada Life group, own in our own right all assets of the Internal Funds. CanRetire: Pension Investment Plan Policy Provisions Page 4 of 16

5 Each External Fund is linked to an underlying fund operated by an external company. All the assets of the External Funds are owned by the relevant external company. Any contracts in relation to External Funds will be between the external companies and us. There is no contractual relationship between the external companies and you. The Policy can then invest in any Fund which is available within the Canada Life Series 5 Pension Funds. No one entitled to benefits under the Policy will have any rights whatsoever in the Funds or in any of the assets they hold. These will always remain our property. You can choose up to ten Funds in which to invest your Premium. We may create additional Units or cancel existing Units. 4.3 Fund closure Funds may need to be withdrawn, closed or combined if the fund manager decides. If you hold Units in such a Fund we will cancel all of the Units you hold in that Fund and replace them with Units in another Fund that has similar characteristics. We will try to tell you at least one month before we withdraw, close or combine a Fund. If it is not possible for us to do this, we will give you as much notice as we can. We will not make any charge for notifying you. When a new Fund is added to our fund range we will add details of the Fund to our website ( Funds may be suspended for reasons within or beyond our control. The actions we take depend on the circumstances of the suspension. We will notify you about the suspension of a Fund as soon as we can. 4.4 Valuation of the Funds Each Working Day we will calculate the maximum and minimum value of each Fund. Where it is not possible to value a Fund on a particular Working Day it will be valued on the next practical Working Day. Each external company values its own Funds at its complete discretion and then provides us with a price or prices, which we use in valuing the External Fund. The maximum value we place on assets in the Funds is the market price for which they could be bought plus any dealing and other related costs that we may pay on purchase. The minimum value we place on assets in the Funds is the market price for which they could be sold less any dealing and other related costs that we may pay on sale. In valuing the Funds we will make allowance for the deduction of all expenses and payments in connection with its investments. The expenses and payments include management, investment management, maintenance and property valuation expenses, mortgage interest, custody and bank charges and any borrowing costs. We calculate the value of an asset as follows: (a) for a listed security, we base the value on the price quoted on the relevant stock exchange we have chosen; (b) for real properties we base the value on a valuation prepared and certified by our appointed independent valuers. After talks with our valuers these values may change to allow for rising income and expenses and changes in property prices between the valuations; (c) for External Fund assets each external company values its own funds at its complete discretion and then provides us with a price or prices, which we use in valuing the External Fund. The exact value of each Fund is determined by whether more Units are being credited to the Fund than cancelled from it. If so, the purchase price of assets will be more relevant than the sale price, as we will be buying more assets than we are selling. However, if more Units are being cancelled than credited, the sale price of assets will be more relevant than the purchase price, as we will be selling more assets than we are buying. Where an external company cannot provide us with a price we will not be able to value the External Fund until a price is next available. 4.5 How we work out the Bid Price of each Fund We will use the Bid Price to sell and buy Units for the Policy The Bid Price will not be less than that calculated by dividing the minimum value of the Fund by the number of Units of that Fund at the time of the valuation, nor will it be more than that calculated by dividing the maximum value of the Fund by the number of Units of that Fund at the time of the valuation, both as determined in section 4.4. Both the minimum and maximum Bid Prices will be rounded down to one decimal place. CanRetire: Pension Investment Plan Policy Provisions Page 5 of 16

6 4.6 How Units are allocated to the Policy For each Premium paid we will add a number of Units, from your chosen Funds, to the Policy. The number of Units added is rounded down to the nearest 1/1000th of a Unit For the first Premium the number of Units added to the Policy, for each of your chosen Funds, is calculated in the following way. We multiply the first Premium by the proportion to be invested in the chosen Fund and divide the result by the Bid Price on the next available Working Day after the Policy Date. The calculation can be expressed by the formula: first Premium x the proportion to be invested in the chosen Fund Bid Price on the next available Working Day after the Policy Date For each Additional Premium the number of Units added to the Policy, for each of your chosen Funds, is calculated in the following way. We multiply the Additional Premium by the proportion to be invested in the chosen Fund and divide the result by the Bid Price on the next available Working Day after the Payment Date. The calculation can be expressed by the formula: Additional Premium x the proportion to be invested in the chosen Fund Bid Price on the next available Working Day after the Payment Date 5. Fund switching 5.1 General information about Fund switching You or your Nominated Professional Adviser can exchange ( switch ) some or all of the Units held in the Policy in a particular Fund for Units in a different Fund. All requests to switch must be received by us at our Registered Office in writing, by or fax. We will only allow switching between Funds if the amount being switched out and the amount left in that Fund after the switch are above our minimum levels at the time of your request. Otherwise we may refuse to carry out your request. The minimum levels are to prevent impractical amounts being switched out of Funds, or impractical amounts being left in Funds. Details of our minimum levels can be found on our website ( or by contacting our Registered Office. 5.2 Charge for switching There is no charge made for Fund switches. We may introduce a charge for switching Funds in the future if the administration cost incurred by us for dealing with Fund switching requests increases. We will normally give you three months written notice by publicising it on our website. If it is not possible for us to give you three months notice, we will give you as much notice as we can. Alternatively, you can contact us before deciding to switch. If a charge for switching Funds is to be taken from the Policy it is made by deducting Units from those already held on the Policy. 5.3 When and how we carry out a request to switch Funds If we carry out your request to switch, unless section 19 applies, it will take place using the Bid Prices of the Units on the next Valuation Day after we receive your fully and correctly completed request. You can tell us the percentage or the monetary value of the Units you want to switch from the original Fund to the selected Fund which will be applied across all Elements in the Policy. The number of Units allocated after the switch will be calculated so that their value is equal to that of the Units being exchanged, less any charge for switching Funds described in section 5.2. We will then cancel the Units being switched out of the original Fund and issue the number of new Units in the new Fund. 6. Charges 6.1 Set Up Charge The amount of the Set Up Charge at the Policy Date is stated in the First Policy Schedule. 6.2 Annual management charge An annual management charge is payable. It is paid by deducting Units, monthly in advance, proportionately across all Funds held on the Policy. The charge is calculated by multiplying the Value of the Units by 1/12th of the percentages shown in the table below. For the first charge, the Valuation Day used to calculate the Value of the Units will be the next Working Day after the Policy Date. After the first charge, the Valuation Day used to calculate the Value of the Units will be the day on which each subsequent monthly anniversary of the Policy Date falls. However, if a monthly anniversary falls on the 29th, 30th or 31st or is not a Working Day, the Valuation Day for this purpose will be the previous practical Working Day. CanRetire: Pension Investment Plan Policy Provisions Page 6 of 16

7 Band Annual Management Charge (AMC) 0 to 25, % Over 25,000 to 50, % Over 50,000 to 100, % Over 100,000 to 500, % Over 500,000 to 1 million 0.10% Over 1 million 0.00% We can review this charge and may reduce or increase it. In deciding whether to change the charge we will consider various factors. These can include the following: (a) changes in the cost of administering and managing the Policy; (b) the charging structures of policies of a similar type in the market place; (c) any past changes to this charge; (d) external factors such as changes in legislation. We will normally give you three months notice of such a change by publicising it on our website. If it is not possible for us to give you three months notice, we will give you as much notice as we can. 6.3 Investment management charge An investment management charge will be taken from the Funds when they are valued. It is taken in addition to the annual management charge and is reflected in the unit prices of the Funds. The amount of this charge depends on the Funds you have chosen. We can increase or reduce this charge if the amount charged by a fund manager changes. We will normally give you three months notice of such a change by publicising it on our website. If it is not possible for us to give you three months notice, we will give you as much notice as we can. The current investment management charges and any changes to these charges can be found on our website ( or by contacting our Registered Office. 6.4 Adviser Charge deductions You can ask us to facilitate the payment of an Adviser Charge from the Policy at any time. If we agree to facilitate the payment of an Adviser Charge, it will be taken proportionately from all the Funds held on the Policy. It is made by deducting Units Initial Adviser Charge Once we have received your fully and correctly completed application form for each Premium we will, if we agree, pay an amount equal to the initial Adviser Charge. We will calculate the number of Units to be deducted from the Policy using the Bid Prices of the Units on the next Working Day following: (a) the Policy Date for the first Premium; and (b) the Payment Date for any Additional Premium One-off Adviser Charge Once we have received your fully and correctly completed adviser charge payment request form we will, if we agree, pay an amount equal to the one-off Adviser Charge. We will calculate the number of Units to be deducted from the Policy using the Bid Prices of the Units on the next Valuation Day On-going Adviser Charge Once we have received your fully and correctly completed request we will, if we agree, facilitate the payment of an on-going Adviser Charge. You can ask us to pay the on-going Adviser Charge monthly, quarterly, half-yearly or yearly and you can specify the date on which it is to be paid. This date must be between the 1st and the 28th inclusive. If you tell us the month but not the date on which the on-going Adviser Charge is to be paid, we will use the day of the Policy Date and will commence the payment from the month you requested. Example: Policy Date is 10 February 2015 On-going Adviser Charge to be paid from March 2016 On-going Adviser Charge will commence from 10 March We will calculate the number of Units to be deducted from the Policy using the Bid Prices of the Units on the date the Adviser Charge is to be paid. Once an on-going Adviser Charge has started to be taken from the Policy we will continue to pay it until one of the following happens: (a) you write and ask us to cancel or change the request; or (b) the Policy is placed under a trust deed; or (c) the Policy does not have enough Units to pay the on-going Adviser Charge; or (d) the date you specified that the on-going Adviser Charge payments are to stop is reached; or (e) on your death. CanRetire: Pension Investment Plan Policy Provisions Page 7 of 16

8 We reserve the right to cease facilitating the payment of the on-going Adviser Charge. If we are going to stop (or have stopped) facilitating the payment of the on-going Adviser Charge we will contact you. We will normally give you three months notice of such a change. If it is not possible for us to give you three months notice, we will give you as much notice as we can. 7. When benefits can be taken 7.1 General You can take benefits under the Policy at any time provided you have reached Normal Minimum Pension Age. Benefits may have to be restricted to keep them within HMRC s limits. See section Before Selected Retirement Age or Normal Minimum Pension Age If you want to take any benefits/further benefits before the Selected Retirement Age you should contact us If you have not yet reached Normal Minimum Pension Age you may be able to take benefits due to ill health or incapacity. We will consider but are not bound to pay benefits to you if: (a) we receive evidence from a registered medical practitioner that you are and will continue to be, medically incapable of carrying on your current occupation as a result of physical or mental impairment; and (b) you have ceased to carry on your occupation; and (c) you satisfy the ill-health conditions set out in Part 4 of the 2004 Act. 7.3 At the Selected Retirement Age We will write to you at the last address we hold for you on our records shortly before you reach the Selected Retirement Age to find out if you want to take any benefits/further benefits If you tell us that you do not want to take any benefits/further benefits at the Selected Retirement Age you can defer this to a later age or date. This will become your new Selected Retirement Age If we do not receive your instructions by the Selected Retirement Age or if we cannot locate you, we will defer the Selected Retirement Age under the Policy to your 75th birthday, or for a further five years if you have already reached age 75. See section 10 for the actions we will take at age 75 in relation to HMRC s limits on benefits. 8. Your benefit options Provided you have reached Normal Minimum Pension Age, or qualify to take your benefits due to ill health or incapacity (see section 7.2.2), you can take benefits from the Policy in one or more of the ways described in this section. Any benefits will be paid in the currency of the UK. Benefits may have to be restricted to keep them within HMRC s limits. See section Income or tax free lump sum and income You can totally surrender the Policy (see section 9.1) or request a one-off partial surrender (see section 9.2) and use the amount surrendered to provide an income by: (a) purchasing an annuity contract from us or from any other insurer that is authorised to sell annuities under the relevant UK legislation; or (b) designating an amount to be invested in an income drawdown contract within the Scheme or with another provider. You can usually ask us to pay up to 25% of the amount surrendered to you as a tax free lump sum and use the balance for annuity purchase or income drawdown purposes as in (a) or (b) above. A tax free lump sum paid in association with (a) or (b) is known as a pension commencement lump sum. If you select (b) and you wish to invest in an income drawdown contract with another provider, the amount surrendered (less any tax free lump sum you ask us to pay to you) must be paid as a transfer payment directly to a Registered Pension Scheme with the other provider (see section 12). If you wish to invest in an income drawdown contract with another provider, instead of first designating the amount surrendered to income drawdown within this Scheme, as in (b) above, you can instead transfer it directly to a Registered Pension Scheme with the other provider in order to make your designation and take any associated tax free lump sum (see section 12). 8.2 Taxable lump sum withdrawals You may be able to take a total withdrawal (see section 9.1), a one-off partial withdrawal (see section 9.2) or a series of regular partial withdrawals (see section 9.3) and have the amount of each withdrawal paid to you as a taxable lump sum. 25% of the amount of the withdrawal is paid tax free. The balance is taxed as income. We will deduct tax as instructed by HMRC before we make a payment to you. This type of payment is known as an uncrystallised funds pension lump sum (UFPLS). CanRetire: Pension Investment Plan Policy Provisions Page 8 of 16

9 8.3 Serious ill health lump sum We will consider but are not bound to pay a sum equal to the total Value of the Units held on the Policy to you as a serious ill health lump sum if: (a) we receive evidence from a registered medical practitioner that you are expected to live for less than one year; and (b) you satisfy the serious ill-health lump sum conditions of Part 4 of the 2004 Act. If you qualify for the payment, the Policy will be totally surrendered as described in section 9.1. A serious ill health lump sum is tax free if it is paid before age 75. If it is paid on or after age 75, the total payment is taxed. We will deduct tax as instructed by HMRC before we make a payment to you. 9. Surrenders and withdrawals All requests must be made by fully completing the relevant claim form. 9.1 Total surrender or withdrawal The amount available for the purposes of taking the benefits described in sections 8.1, 8.2 and 8.3 or a transfer payment to another Registered Pension Scheme described in section 12, will be a sum equal to the Value of the Units. All the Units held on the Policy will be cancelled, the Policy will end and no further benefits will be payable. 9.2 One-off partial surrender or withdrawal General Information You must tell us the amount you wish to surrender or withdraw from the Policy for the purposes of taking the benefits described in sections 8.1 and 8.2 or a transfer payment to another Registered Pension Scheme described in section 12. The amount requested must be at least the minimum that we will allow at the time of the payment. You can contact our Registered Office for further details. You can take the surrender or withdrawal in one of the following ways: (a) proportionately across all the Funds held on the Policy; or (b) proportionately from Funds specified by you, subject to an overall maximum of five Funds. If you do not tell us how you wish to take the surrender or withdrawal, we will take it proportionately from all Funds held on the Policy as in (a) above. If you are taking it from a specific Fund as in (b) above, and there are not enough Units left in that Fund to pay the amount requested, we will contact you to find out which other Fund you want it to be taken from. If there are not enough Units left on the Policy to pay the amount requested, we will treat your request as a total surrender or withdrawal as described in section 9.1 in order to close the Policy, for which we will require your instructions How the one-off partial surrender or withdrawal operates We will calculate the number of Units to be deducted from the Policy by dividing the amount requested by the Bid Prices of the Units on the Valuation Day. These Units will then be deducted from the Units already held on the Policy in the way you have selected under section Regular partial withdrawals General Information You can only have regular partial withdrawals for the purposes of taking a series of taxable lump sum payments of the type described in section 8.2. You must tell us the amount you wish to withdraw from the Policy and if you wish to receive this amount monthly, quarterly, half-yearly, or yearly. The amount requested must be at least the minimum that we will allow at the time of the payment. You can contact our Registered Office for further details. You can only have one series of regular withdrawals at a time. You can take the withdrawals in one of the following ways: (a) proportionately across all the Funds held on the Policy; or (b) proportionately from Funds specified by you, subject to an overall maximum of five Funds. If you do not tell us how you wish to take the withdrawals, we will take them proportionately from all Funds held on the Policy as in (a) above. If you are taking the withdrawals from a specific Fund as in (b) above and there are only enough Units left in that Fund to take one more withdrawal, we will contact you to find out which other Fund the further withdrawals are to be taken from. If we do not receive your instructions before the further withdrawal is due, the regular withdrawals will stop. If there are only enough Units left on the Policy to take one further withdrawal, we will pay that withdrawal and will contact you about taking a total withdrawal, as described in section 9.1 in order to close the Policy, for which we will require your instructions. CanRetire: Pension Investment Plan Policy Provisions Page 9 of 16

10 Once a series of regular withdrawals have started to be taken from the Policy, we will continue to pay them until one of the following happens: (a) you write and ask us to cancel or change the request; or (b) we contact you due to one of the reasons described within this section; or (c) it becomes necessary to stop the withdrawals in order to comply with the requirements of a pension sharing order made against the Policy; or (d) we establish or have reason to believe that taking further withdrawals would exceed your lifetime allowance, described in section 10; or (e) on your death How the regular partial withdrawal operates You can tell us the date on which you wish the regular partial withdrawals to be paid. This date must be between the 1st and the 28th inclusive. Where any date between the 1st and the 28th inclusive is not a Working Day, the payment will be made on the next available Working Day. We will calculate the number of Units to be deducted from the Policy by dividing the amount requested by the Bid Prices of the Units on the date each payment is due. These Units will then be deducted from the Units already held on the Policy in the way you have selected under section HMRC s limit on benefits In keeping with the 2004 Act, we must establish at certain times if the value of your benefits is within or exceeds your lifetime allowance, being the overall limit on an individual s pension savings set by HMRC. The times are: (a) each time you take benefits from the Policy before you reach age 75, including at the start and at any time during the payment of regular taxable lump sum withdrawals under section 8.2; and (b) on transferring out to a qualifying recognised overseas pension scheme before age 75; and (c) automatically when you reach age 75; and (d) such other times as HMRC may specify. Benefits in excess of HMRC s limit are liable to a tax called the lifetime allowance charge. If we find that there is an excess and you tell us to treat part or all of it as arising in this Scheme, we will deduct Units equal in value to the amount of the lifetime allowance charge due from the Policy, report the excess and pay the charge to HMRC. Where (c) applies, we will write to you shortly before you reach age 75 to obtain the information we need to check that your benefits are within HMRC s limit. If by your 75th birthday you do not provide the information we require or we cannot locate you, we may assume that the total value of the Units remaining on the Policy on your 75th birthday is in excess of HMRC s limit. We may deduct Units from the Policy in order to pay a lifetime allowance charge as part of this process. 11. Death benefits The amount available to provide benefits on your death will be: a) the Value of the Units. The Valuation Day for this purpose will be the next Working Day after the Notification Date; plus b) any payments (including but not limited to ongoing Adviser Charges and regular partial withdrawals) paid after the date of your death but before the Notification Date that have since been returned to us. Payment of the death benefits will only be made once we have received all the fully and correctly completed documents we need to accept the claim. The death benefits will be paid in the currency of the UK. The Rules of the Scheme set out the types of death benefits payable and who may receive them. In accordance with the Rules the Scheme Administrator decides who to pay. As a result of paying the death benefits, all the Units held on the Policy will be cancelled, the Policy will end and no further benefits will be payable. 12. Transferring out of the Scheme You can: (a) totally surrender the Policy in the way described in section 9.1 at any time; or (b) provided that you have reached Normal Minimum Pension Age, partially surrender the Policy in the way described in section 9.2, in order to make a transfer payment to another Registered Pension Scheme or a qualifying recognised overseas pension scheme (QROPS). If the transfer is to a QROPS, the amount of the transfer payment may have to be reduced to comply with HMRC s limit described in section 10. Any transfer payment made under this section shall be in keeping with the 2004 Act. CanRetire: Pension Investment Plan Policy Provisions Page 10 of 16

11 13. Divorce or dissolution of a civil partnership 13.1 General We will place a value on the Policy to assist you in reaching a financial settlement on your divorce or the dissolution of your civil partnership. We will only do this if legal divorce or dissolution proceedings have commenced and may ask for proof of this. The value we quote will be the Value of the Units Pension sharing orders General The Policy can be totally or partially surrendered to meet the requirements of a pension sharing order or provision made under UK law on your divorce or the dissolution of your civil partnership (referred to in these provisions as the Order ). The pension share made in favour of the former spouse or civil partner named in the Order or provision is called the pension credit. Our liability to the pension credit arises on the effective date of the Order. Once the effective date of the Order has been reached, we will not accept any new requests you make to totally or partially surrender the Policy or to take withdrawals from it, until we have discharged (paid) the pension credit in the way selected by your former spouse or civil partner. The valuation day to be used for the purposes of calculating the value of a pension credit will be the first Working Day after the later of: (a) the effective date of the Order; and (b) the date we receive our pre-stated pension sharing requirements. The pension credit can only be paid once this valuation day has been reached. Payment of the pension credit will be met by deducting Units from the Policy on the same valuation day. In the case of a 100% pension share, all the Units held on the Policy will be cancelled, the Policy will end and no further benefits will be payable If regular partial withdrawals are in payment If you are already taking regular partial withdrawals from the Policy under section 9.3 on the effective date of the Order, we will stop the withdrawals as follows: (a) for a 100% pension share, from the next payment due on or after the effective date of the Order; and (b) for a pension share of less than 100%, at any time on or after the effective date of the Order, we are satisfied that there will not be enough Units on the Policy for us to meet our liability to discharge the pension credit. We will do this even if the pension credit has not been settled because the valuation day described in section has not been reached. We cannot change this to assist any maintenance arrangements contained in the financial settlement made on your divorce or the dissolution of your civil partnership Pension share specified as an amount (Scotland only) If the pension share is expressed as an amount in the Order rather than as a percentage, the maximum amount of the pension credit we will pay will be the value of the Units using the Bid Price on the valuation day described in section We will take the same actions described in section in relation to regular partial withdrawals being taken from the Policy on the effective date of the Order. 14. Cancellation You have the right to change your mind and cancel the Policy. You have 30 days from the date the Policy is issued to change your mind. You also have the right to change your mind and cancel any Additional Premium. You have 30 days from the date the Additional Policy Schedule is issued to change your mind. 15. Surrender, assignment and lump sums You cannot surrender or assign this Policy, nor have any benefits paid to you as a lump sum, except as stated in these provisions. 16. Altering the Policy If there is a change in law, taxation, regulation or guidance from our industry so that: (a) it becomes unreasonable or impossible to carry out the provisions of the Policy; (b) the basis of taxation which applies to us or the Policy is changed; or (c) any existing taxes, charges or levies are changed, or any new taxes, charges or levies are imposed, we may change the terms and benefits of the Policy. If we have to change the terms of the Policy we will send you an Endorsement. We will normally give you three months written notice of such change. If it is not possible for us to give you three months notice, we will give you as much notice as we can. CanRetire: Pension Investment Plan Policy Provisions Page 11 of 16

12 17. Claims 17.1 We will ask for certain documents in order to make a payment (or to commence a series of payments) from the Policy. Examples of documents we may ask for are: (a) these provisions, the First Policy Schedule, any Additional Policy Schedule and any Endorsement; (b) your original birth certificate; (c) in the event of a Death claim, the original death certificate; and (d) the duly completed claim form(s). We may ask for further documents or information if needed to accept the claim. We will not pay or reimburse you or any other party for any evidence supplied to support a claim. Once we have received all the documents and information we require and have accepted the claim, we will begin the process of paying the benefit under the Policy You [or any other claimant] who provides incorrect information when claiming benefits under the Policy will be responsible for paying to us, any reasonable costs, losses or expenses that we incur as a result of the incorrect information. 18. General information 18.1 Law The Policy is governed by the laws of England and Wales. Court proceedings may be commenced in any court within the UK Communication You may contact us by letter, , fax or telephone. Important documents are sent to us at your own risk. As such, you may want to send them by recorded or registered delivery. Postage costs are your responsibility. We will return documents sent to us by recorded or registered delivery by recorded delivery. All communication sent to you will be sent to your last known postal address. We will regard the communication as having been received by you within five days of posting. We will confirm receipt of any communication we receive from you. If you have not heard from us within a month please contact us as we only act on communication we receive. We will write and tell you if our address changes. You must write and tell us if your address changes Policy rights Only you or we may exercise any of the rights found within the Policy. This means that the Contracts (Rights of Third Parties) Act 1999 does not apply Non-participating The Policy will not take part in any way in the distribution of our profits. 19. When we may delay fund switching and paying claims We may delay: (a) the valuation, cancellation and issue of Units under section 5; and (b) the payment of an Adviser Charge under section 6.4; and (c) the valuation of Units and payment of benefits under section 8 and 9; and (d) the valuation and cancellation of Units for the purposes of sections 12 and 13, if there is insufficient liquidity in the underlying assets of the Fund and/or if there are events or circumstances beyond our reasonable control that prevent us from placing a value on the Units. This may happen where the Fund concerned invests directly or indirectly in freehold or leasehold property, land or non-sterling securities. We will not delay in respect of (a), (b), (c) or (d) above beyond six calendar months. We will contact you if we are going to delay. CanRetire: Pension Investment Plan Policy Provisions Page 12 of 16

13 20. Queries and Complaints If you have any questions about either the Policy or your benefits please contact our Registered Office. If you wish to complain about the service you have received from us, in the first instance, please contact our Registered Office and we will deal with your complaint through our normal complaints procedure. If we are not able to resolve your complaint, through our normal complaints procedure, you can then contact the Financial Ombudsman Service in writing or by telephone: The Financial Ombudsman Service Exchange Tower London E14 9SR Phone: or, for mobile users org.uk Website: Making a complaint will not affect your right to take legal action against us. 21. The Financial Services Compensation Scheme (FSCS) The FSCS is designed to pay compensation if a company is unable to pay claims, because it has stopped trading or been declared in default. If we are unable to meet our liabilities, you may be able to claim compensation from the FSCS. Further information is available from the Financial Conduct Authority and the FSCS. CanRetire: Pension Investment Plan Policy Provisions Page 13 of 16

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16 For further information about Canada Life Limited, please visit or call us on Canada Life Limited, registered in England no Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Telephone: Fax: Member of the Association of British Insurers. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. ID R CanRetire: Pension Investment Plan Policy Provisions Page 16 of 16