RETIREMENT ACCOUNT ADDITIONAL POLICY PROVISIONS FOR RETIREMENT INCOME RARI (2016)

RETIREMENT ACCOUNT ADDITIONAL POLICY PROVISIONS FOR RETIREMENT INCOME RARI (2016)

INTRODUCTION This booklet provides additional details for those wishing to take Retirement Income Benefits through a Scottish Widows Retirement Account Policy. This booklet forms part of the Policy Documents for your Policy if we have confirmed in a Schedule that it applies to your Policy. If any term or provision is inconsistent between this booklet and the Policy Provisions Booklet, the term or provision in this booklet will apply. This booklet should be read with the other Policy Documents. Notes to help you understand your Policy. Because this is a complicated legal document, we have provided explanations in the right-hand margin (just like the information you are reading now). However, please note that these explanations do not form part of the contract between you and us. They are included only to help you understand this booklet. If this booklet applies to your Policy, it will form part of the contract between you and us. The Policy Provisions Booklet we issued to you at the start of your Policy (or if relevant, at the time of a valid Endorsement to it) explains the main terms and conditions of the Policy. These include making contributions, the types of investment that can be chosen, how we take charges and how benefits can be taken. This Additional Policy Provisions For Retirement Income booklet details additional terms and conditions to your Policy that are necessary to allow you to take Retirement Income Benefits. This booklet also explains the differences between a Retirement Income Arrangement (a part of your Policy from which you can take income withdrawals) and any Retirement Planning Arrangement (a part of your Policy before you take income withdrawals and which is dealt with just in the Policy Provisions booklet). You may therefore need to refer to both booklets if you wish to find out certain details about your Policy. Please keep this document in a safe place. Also please remember to inform us if you change your name, address, bank account or employer. You can reach us at our main administrative office: 15 Dalkeith Road, Edinburgh, EH16 5BU or telephone number 0131 655 6000. We may monitor and record calls to help us to improve our service. It will help if you can quote your Policy number(s) when you contact us.

RI 1 PAGE 2 FURTHER DEFINITIONS RI 2 PAGE 3 CONTRIBUTIONS TO A RETIREMENT INCOME ARRANGEMENT RI 3 PAGE 6 FURTHER CONTROL ACCOUNT MOVEMENTS RI 4 PAGE 7 CHANGES TO CHARGES RI 5 RI 6 PAGE 9 INCOME WITHDRAWALS FROM A RETIREMENT INCOME ARRANGEMENT PAGE 11 PURCHASE OF PENSION FROM A RETIREMENT INCOME ARRANGEMENT RI 7 PAGE 12 DEATH BENEFIT FROM A RETIREMENT INCOME ARRANGEMENT RI 8 PAGE 13 TRANSFER PAYMENT FROM A RETIREMENT INCOME ARRANGEMENT 1

RI 1 FURTHER DEFINITIONS Contribution From Retirement Planning Arrangement means a single contribution that results from an amount moved at a Designation Date from a Retirement Planning Arrangement to a Retirement Income Arrangement. Designate means to make a Contribution From Retirement Planning Arrangement to a Retirement Income Arrangement. Designating and Designation will be construed accordingly. This provision deals with some definitions used elsewhere in this booklet. The definitions here are further to those in the Policy Provisions Booklet. The Contribution From Retirement Planning Arrangement is after any cash sum taken at the Designation Date or any tax charge that may apply then. Further details on Designation and a Contribution From Retirement Planning Arrangement are given in provision RI-2. Designation Date means the date a Designation occurs. Drawdown Pension Fund means a part of a pension policy or pension scheme from which income withdrawals can be taken directly. Drawdown Pension Year means a year starting on the anniversary of the first Designation Date. However, if this Policy started with a Retirement Income Transfer Contribution, it means either or if your Policy is on a Flexi-Access Drawdown basis, a year starting on the anniversary of the payment of the Retirement Income Transfer Contribution, if your Policy is on a Capped Drawdown basis, a year starting on the anniversary of when your Drawdown Pension Fund originally began. Policy Provisions Booklet means the policy provisions booklet referred to in the Policy Schedule (or any valid Endorsement to it). Retirement Income Arrangement means an Arrangement from which you can take Retirement Income Benefits. Retirement Income Benefits means any immediate lump sum paid at the Designation Date, and any income withdrawals. Retirement Income Transfer Contribution means a single contribution that results from a transfer payment of Drawdown Pension Fund from another policy or pension scheme. Other terms are used throughout the provisions in this booklet or the Policy Provisions Booklet and their meanings or descriptions are established in the Schedule or in particular provisions. If a Policy is on a Capped Drawdown basis, legislation restricts the amount of income that can be taken. A Policy on a Flexi- Access Drawdown basis has no such restrictions. More details can be found in Part 4 of the Finance Act 2004. The Policy Provisions Booklet referred to here is the policy provisions booklet issued at the start of your Policy (or if relevant, at the time of a valid Endorsement to it) it s not this Additional Policy Provisions For Retirement Income booklet. We divide the Policy into various parts. Each part is called an Arrangement. A Retirement Income Arrangement refers to a part of the Policy from which you can take Retirement Income Benefits before entering on pension. The Retirement Income Transfer Contribution is a transfer payment made to us from another policy or pension scheme from which you had started taking Retirement Income Benefits. Such a policy or pension scheme may also be referred to as a Drawdown Pension Fund. Please contact us for further details. 2

RI 2 CONTRIBUTIONS TO A RETIREMENT INCOME ARRANGEMENT This provision deals with how a contribution can be made to a Retirement Income Arrangement. Contributions to a Retirement Planning Arrangement are dealt with in the Contributions provision of the Policy Provisions Booklet. RI 2.1 TYPES OF CONTRIBUTIONS The types of contribution that can be made under a Retirement Income Arrangement will be a Retirement Income Transfer Contribution and a Contribution From Retirement Planning Arrangement and they must be made in accordance with provisions RI-2.2 and RI-2.3 respectively. Each such contribution will be a separate Contribution Layer. RI 2.2 RETIREMENT INCOME TRANSFER CONTRIBUTION The amount of any Retirement Income Transfer Contribution paid at the start date of the Policy in respect of a Retirement Income Arrangement will be stated in the Policy Schedule. We will not accept a Retirement Income Transfer Contribution after the start date of the Policy. If the Retirement Income Transfer Contribution is in respect of a Drawdown Pension Fund which started before 6 April 2006, we will not accept any further contribution (of any type) to the Policy. The meaning of each of the following terms is given in the Policy Provisions Booklet: Contribution Layer, Policy, and Policy Schedule. The start date of the Policy is shown in the Policy Schedule. If before 6 April 2006 you started taking Retirement Income Benefits from another policy or pension scheme and you ve transferred the remaining value of those benefits to this Policy, you won t be able to pay any further contributions to this Policy. RI 2.3 CONTRIBUTION FROM RETIREMENT PLANNING ARRANGEMENT AND IMMEDIATE LUMP SUM RI 2.3.1 General details about a Designation request You can request to Designate a Contribution From Retirement Planning Arrangement in respect of the whole or a specified proportion of a Retirement Planning Arrangement, unless it is a Retirement Planning Protected Rights Arrangement. For a Retirement Planning Protected Rights Arrangement a request must be in respect of the whole Arrangement. Your request must be accompanied with instructions as to the options required and such information as we may reasonably require, and be made in a form acceptable to us. Your request is subject to our agreement, to the following paragraphs and to provisions RI-2.3.2 to RI-2.3.6. If we do not agree to your request, we will inform you and we will not give effect to any part of it. If your Policy has two Retirement Planning Arrangements and you wish to Designate from both of them at the same time, we will treat these as two separate Designation requests. We will set up a separate Retirement Income Arrangement in respect of each Retirement Planning Arrangement from which there has been a Designation. Only a Policy that started before 6 April 2012 may have a Retirement Planning Protected Rights Arrangement. If your Policy has such an Arrangement, a Schedule previously issued by us will refer to it. We ll need certain information before we can agree to a Designation request. For example, we will need to know how much of the value of a Retirement Planning Arrangement is to be moved to the Retirement Income Arrangement and full details of how this is to be achieved. Taking income withdrawals can give you an income from your Policy while keeping the remaining value of the Policy invested. Alternatively, you may decide after taking any cash sum to keep your Policy invested and to not take any income withdrawals. A Policy started on or after 6 April 2012 will have, at most, one Retirement Planning Arrangement and, at most, one Retirement Income Arrangement. However, a Policy started before that date may have up to two Retirement Planning Arrangements and up to two Retirement Income Arrangements. If a Policy has two Retirement Income Arrangements, there will be no difference in how benefits can be taken from each. 3

RI 2.3.2 Designation Date Subject to the following paragraphs, a Designation Date will be the latest of (c) such date as you request, the day that we receive all the documentation we reasonably require at our main administrative office, and if applicable, the day we receive all details of any valuation of the relevant Retirement Planning Arrangement that we reasonably require. The date in above cannot be more than 30 days after the day in above. Any valuation costs incurred under (c) will be deducted from the Policy by such method as we decide. Designating at a date other than the chosen retirement date stated in the Schedule before any endorsement to it is subject to (i) (ii) the provision of the Rules, and your age at that time not exceeding any maximum age limit we decide. We may change the maximum age limit in (ii) above at any time and without notice. We will not proceed with a Designation from a Retirement Planning Arrangement and any payment of an immediate lump sum under provision RI-2.3.3 if a Deferred Charge applies to that Arrangement at the Designation Date, or if the Designation would otherwise result in such a charge applying to any Arrangement. RI 2.3.3 Immediate Lump Sum You can request that an immediate lump sum benefit be paid at the Designation Date in accordance with the Rules. The amount of the lump sum will be deducted from the balance of the Control Account of the Retirement Planning Arrangement immediately before the Designation occurs. We will confirm the amount in writing. RI-2.3.4 Method of Designation You can request to Designate by one or a combination of the following methods: (c) by moving an amount from the Control Account of a Retirement Planning Arrangement to the Control Account of a Retirement Income Arrangement, by cancelling an allocation of units to a Retirement Planning Arrangement and allocating equivalent units to a Retirement Income Arrangement, and by moving an amount from a Cash Deposit Account of a Retirement Planning Arrangement to Cash Deposit Account of a Retirement Income Arrangement. The units in are any units in the Scottish Widows Pension Funds, any Supermarket Units and any PMF Units. We will confirm the Contribution From Retirement Planning Arrangement in a Schedule. If we have accepted a contribution to a Retirement Planning Arrangement and immediately allowed you to Designate some or all of that contribution, the Schedule will state that the Contribution From Retirement Planning Arrangement is an immediate vesting amount. If the Designation involves method above, the Schedule will state that it is an assumed amount. There are a number of risks associated with taking income withdrawals. In particular, you may receive less income overall than if you had immediately started your pension. We strongly recommend that you speak to a financial adviser before taking income withdrawals and that you regularly review whether their level is still appropriate for your circumstances. For example, if a commercial property is held we may require a valuation of it to be done first. Please contact us for current details of our requirements for the minimum value of a Policy before starting Retirement Income Benefits or increasing those benefits, the minimum amount of a Policy to be used to provide those benefits or increase those benefits, and (c) the maximum age for first starting to take those benefits or increasing those benefits. The meaning of Deferred Charge is given in the Control Accounts provision of the Policy Provisions Booklet. At a Designation Date, you can use some of the amount used to provide Retirement Income Benefits (usually up to a quarter) to provide an immediate cash sum with the rest being used to provide income withdrawals (see provision RI-5). If a contribution is paid to a Retirement Planning Arrangement and you immediately wish to take Retirement Income Benefits, this is commonly referred to as immediate vesting. The Schedule will show both a contribution paid to the Retirement Planning Arrangement and a Contribution from Retirement Planning Arrangement paid to the Retirement Income Arrangement. However, the value of the Retirement Planning Arrangement will have been immediately reduced by the total of (i) the amount moved to the Retirement Income Arrangement, (ii) any immediate cash sum paid, and (iii) any tax due. Any amount under method is assumed because we are not actually selling any investments at that time and so the value placed on some types of investment may be based on an estimate. The Contribution From Retirement Planning Arrangement does not include any immediate cash sum paid or any tax charge payable at the Designation Date. The value of a Retirement Planning Arrangement under the Policy immediately before a first Designation must be at least a minimum amount that we decide at that time. We will calculate the value of the Arrangement in accordance with the provision Value of an Arrangement of the Policy Provisions Booklet. Also, for the first and any subsequent Designation we will decide a minimum amount of Contribution From Retirement Planning Arrangement. We may change each of these minimum amounts at any time and without notice. 4

If the Designation involves method above, we will cancel the allocation of all or some of the units allocated to the Retirement Planning Arrangement. If not all of the units allocated to the Retirement Planning Arrangement are to be cancelled, we will select the units to be cancelled. The type and value of units cancelled will be as close as is reasonably possible to that specified in your request. We will then allocate units of the same type, number and value as just cancelled to the Retirement Income Arrangement. If a Designation involves just part of a Retirement Planning Arrangement, we would normally expect you to request which types of investment are to be Designated and how much of each type. Subject to our agreement and to such conditions as we may reasonably decide, you may request in connection with a Designation involving methods and (c) that (i) (ii) a PMF investment or Cash Deposit Account investment as appropriate of a Retirement Planning Arrangement is split in such proportions as you specify so that part remains with the Retirement Planning Arrangement and the other part becomes an investment of the Retirement Income Arrangement, and for such an investment (i) above which is already split, that the Retirement Planning Arrangement proportion is decreased and the Retirement Income Arrangement proportion is correspondingly increased. Unless we reasonably decide otherwise, all aspects of the PMF investment such as its value, and any income, charge, expense, cost, fee, tax, duty, levy, loan, and liability arising will be split between the two Arrangements using the then current proportion of the investment that applies to each Arrangement. For example, you could ask us to split a commercial property investment of a Retirement Planning Arrangement so that part of it remains with that Arrangement and the other part becomes an investment of the Retirement Income Arrangement. Any mortgage, rent received or Property Expense incurred etc. would then be divided between the two Arrangements using the split you requested at the Designation. If an investment is split at a Designation, you won t be able to later return any of the Retirement Income Arrangement s share of the investment to the Retirement Planning Arrangement. The only exception would be if you were to cancel a Designation during any cancellation period we tell you about. RI-2.3.5 Cancellation of Retirement Planning Arrangement If your request to Designate, and, if applicable, take an immediate lump sum, is in respect of the whole of a Retirement Planning Arrangement, we will cancel that Arrangement at the Designation Date and we will have no further obligation under it. RI-2.3.6 Insufficient Control Account balance If there is insufficient balance in the Control Account of the Retirement Planning Arrangement to pay any requested immediate lump sum benefit under provision RI-2.3.3, plus Adviser Payment Charge Contribution at the Designation Date, we may reasonably decide to not proceed with your request to Designate under provision RI-2.3.1. However, if there are Scottish Widows Pension Fund units allocated to that Arrangement and their value plus the balance of the Control Account would be at least the sum of and above; (i) (ii) we will cancel some or all of those units as we reasonably decide, in accordance with the relevant provision for the cancellation of units of the Policy Provisions Booklet, and use the value to increase the balance of the Control Account to be equal, or as close as possible, to that sum before proceeding with your request to Designate. If you don t want any Scottish Widows Pension Fund units to be automatically cancelled, you or your adviser will need to increase the balance of the Control Account of the Retirement Planning Arrangement by requesting one or more Retirement Planning investments are sold so that the proceeds are paid into the Control Account. 5

RI 3 FURTHER CONTROL ACCOUNT MOVEMENTS The types of movement in or out of the Control Account of an Arrangement listed in the provision Types and order of movements of the Policy Provisions Booklet will also include: The Control Accounts provision in the Policy Provisions Booklet gives details of the movements into and out of an Arrangement. This provision details further movements to allow Retirement Income Benefits to be paid. (c) (d) (e) For the Control Account of a Retirement Planning Arrangement, any movements in and out to provide an immediate lump sum under provision RI-2.3.3, and any amount moved out of the Control Account of a Retirement Planning Arrangement and then in to the Control Account of a Retirement Income Arrangement under of provision RI-2.3.4. For the Control Account of a Retirement Income Arrangement, any movements in and out for securing an immediate pension under provision RI-6, death benefits under provision RI-7, and transfer payment under provision RI-8. For the Control Account of a Retirement Income Arrangement, any movement out because of an Additional Service Charge under provision RI-4.2.1. For the Control Account of a Retirement Income Arrangement, any movement out because of a charge under provision RI-5.5. For the Control Account of a Retirement Income Arrangement, any movements in and out to pay an income withdrawal under provision RI-5.4. 6

RI 4 CHANGES TO CHARGES This provision details possible changes to the charges taken under the Policy. RI 4.1 CHANGE TO ADVISER PAYMENT CHARGE CONTROL ACCOUNT PROVISION In the provision Adviser Payment Charge Control Account of the Policy Provisions Booklet, the following replaces (A) to (C) of the existing paragraph: (A) (B) (C) secure retirement benefits from a Retirement Planning Arrangement or secure pension from a Retirement Income Arrangement, provide a transfer payment, or Designate a Contribution From Retirement Planning Arrangement, RI 4.2 ADDITIONAL SERVICE CHARGE FOR A RETIREMENT INCOME ARRANGEMENT This provision only applies if the Schedule we issued at the time of the first contribution paid to a Retirement Income Arrangement under your Policy shows an Additional Service Charge rate table applying. RI-4.2.1 Deduction of Additional Service Charge On each Monthly Charging Day we will make a charge called an Additional Service Charge for each Retirement Income Arrangement in accordance with provision RI- 4.2.2. We will reduce the balance of the relevant Control Account by the Additional Service Charge amount for that Arrangement in accordance with provision RI-3. RI-4.2.2 Additional Service Charge amount The Additional Service Charge amount for a Retirement Income Arrangement will be equal to a percentage of the value of that Arrangement subject to Provision 4.2 describes how we may make an Additional Service Charge. This is an additional charge to the Service Charge for Retirement Income Arrangements only. It only applies if we have issued you with a Schedule showing that an Additional Service Charge rate table applies. The Service Charge of an Arrangement, including that from a Retirement Income Arrangement, is dealt with in the Service Charge provision of the Policy Provisions Booklet. The meaning of each of the following terms is given in the Policy Provisions Booklet: Control Account, Monthly Charging Date, and Schedule. the percentage will be not greater than one-twelfth of the Yearly Charge Percentage determined from the Additional Service Charge rate table applying on the Monthly Charging Day using the total value of the Retirement Income Arrangement, and the value of the Retirement Income Arrangement will be calculated in accordance with the provision Value of an Arrangement of the Policy Provisions Booklet. Subject to the following paragraphs, the Additional Service Charge rate table will be as shown in the relevant Schedule. (A) We may, on giving three months notice in writing increase the scale of yearly charge percentages shown in the Additional Service Charge rate table, but only to a level which we consider in good faith will result in our margin of charges over costs (excluding investment costs) in respect of the relevant policies being not excessive. The relevant policies are all Scottish Widows Retirement Account policies with a Retirement Income Arrangement. (B) Valid reasons for us increasing the standard scale of yearly charge percentages are: (i) any change in law or taxation that affects us or the policies, or (ii) exceptional circumstances resulting in either (1) our costs of managing the policies being significantly more than we anticipated, or (2) our income from Additional Service Charges being significantly less than we anticipated. It is not possible to give an exhaustive list of the types of changes in law, taxation and exceptional circumstances as the future is not known. However, one example of an exceptional circumstance could be a large and sustained fall in stock market values which significantly reduces our anticipated future income from the Additional Service Charges. 7

The changes in law or taxation and exceptional circumstances must be such that they could not have been reasonably foreseen, be outside our control and result in a significant reduction to our margin of charges over costs (excluding investment costs). (C) In forming our opinion, we will take into account the general level of such margins referred to above in the market for policies of similar types, actuarial principles for life and pensions business, and any previous increase in the scale. 8

RI 5 In this provision, RI-5.1 INCOME WITHDRAWALS FROM A RETIREMENT INCOME ARRANGEMENT you means the Member shown in the Policy Schedule or, after the Member s death, any person entitled to benefits under the Policy in respect of a Retirement Income Arrangement, there being no more than one such person for the Policy, and any reference to Arrangement applies only to a Retirement Income Arrangement in respect of which you are entitled to benefits and in respect of which units are allocated to the Arrangement. GENERAL DETAILS ABOUT A REQUEST Subject to the following paragraphs you may request us at any time to pay under an Arrangement regular income withdrawals at yearly or monthly intervals, or at such other intervals as may be agreed by us, or a single income withdrawal at a specified date as may be agreed by us. Your request will be valid only if it is in a form acceptable to us and is in accordance with the Rules. Subject to provision RI-5.2 the amount of any regular income withdrawals under a request of type above will be fixed during a Drawdown Pension Year. You may change a request of type at any time, provided that notice of the change is in a form acceptable to us and, unless we allow otherwise, we receive it at our main administrative office at least 10 days before the change is to take effect. RI-5.2 MAXIMUM AND MINIMUM INCOME WITHDRAWALS For any period for which legislation or the Rules set a maximum or minimum for the income withdrawals which may be paid from an Arrangement, the following paragraph will apply in respect of that Arrangement. During the period we may at any time adjust the regular income withdrawals under a request of type in provision RI-5.1, or pay an additional income withdrawal. However, we will do this only to such extent as we reasonably consider appropriate to ensure that the total amounts payable under provision RI-5.4 during the period will not exceed the maximum or fall below the minimum. RI-5.3 CONTROL ACCOUNT BALANCE AND CANCELLATION OF SCOTTISH WIDOWS PENSION FUND UNITS Each income withdrawal amount requested and any charge applying under RI-5.5 will be made in accordance with the Control Account provision of the Policy Provisions booklet. However, if a Deferred Charge applies to the Control Account, we will not pay that income withdrawal, This provision deals with income withdrawals that you can take from a Retirement Income Arrangement you cannot take income withdrawals from a Retirement Planning Arrangement. If you die while taking income withdrawals, subject to the Rules of the Scheme any dependant of yours may continue to take income withdrawals instead of death benefits under provision RI-7. Unless we tell you otherwise, you will not be able to continue taking income withdrawals under this Policy once you reach age 99. Instead, before age 99 you must either start taking pension benefits from the remaining value of the Retirement Income Arrangement (see provision RI-6) or transfer that value to another pension scheme (see provision RI-8). Provision RI-5.4 gives more detail on the date an income withdrawal is payable. The meaning of the Rules is given in the Policy Provisions Booklet. The meaning of Drawdown Pension Year is given in provision RI-1. Your Policy will be on a Flexi-Access Drawdown basis unless we agreed at the start to accept a Retirement Income Transfer Contribution on a Capped Drawdown basis. You can ask to change from a Capped Drawdown basis to a Flexi-Access Drawdown basis, but you can t change back. If your Policy is on a Capped Drawdown basis, an upper income withdrawal limit, set by legislation, will apply during each Drawdown Pension Year. We ll normally review your limit every three years. The Government could in the future change the upper limit (or even introduce a lower limit). If this happens, we will let you know how this affects your Policy. If your Policy is on a Flexi-Access Drawdown basis, there is no such restriction. We will not allow a Deferred Charge to arise because of an income withdrawal. 9

and (c) if payment of the income withdrawal would otherwise result in a Deferred Charge applying, we will (i) restrict the amount of income withdrawal, if necessary, to be equal to a maximum of the balance of the Control Account plus the value of any Scottish Widows Pensions Fund units allocated to the Arrangement less any charge made under provision RI-5.5, and (ii) we will cancel some or all of those units as we reasonably decide, in accordance with the relevant provision for the cancellation of units of the Policy Provisions Booklet, and use the value to increase the balance of the Control Account to be equal, or as close as possible, to the income withdrawal amount, if under RI-5.2 the Rules at that time specify that a minimum income withdrawal amount must be paid and the requested income withdrawal is less than that minimum, we will reasonably decide what actions we must take to allow the minimum income withdrawal to be paid. We will reduce the balance of the Control Account by the amount of any income withdrawal paid. Payment of income withdrawals will be made by a means decided by us. You should regularly check the Control Account balance and the value of any Scottish Widows Pension Fund units held in the Retirement Income Arrangement. If these are insufficient to meet an income withdrawal amount, we will restrict that amount. If you don t want any Scottish Widows Pension Fund units to be automatically cancelled, you or your adviser will need to increase the balance of the Control Account by requesting one or more Retirement Income investments are sold so that the proceeds are paid into the Control Account, and/or if applicable, and subject to our agreement, designating an amount from a Retirement Planning Arrangement to that Retirement Income Arrangement it may be possible for you to first pay a contribution to the Retirement Planning Arrangement and then immediately designate it. RI-5.4 DATE AN INCOME WITHDRAWAL IS PAYABLE Subject to provisions RI-5.1 to RI-5.3 and unless we agree otherwise: each income withdrawal requested under provision RI-5.1 will become payable on the date requested (provided that date is on or before the 28th day of the month) or on the next working day, and any income withdrawal requested under provision RI-5.1 will become payable on the day or the next working day after we receive your request at our main administrative office or on such later date as we agree. Any additional income withdrawal under provision RI-5.2 will become payable on such date as we reasonably decide in accordance with that provision. RI-5.5 ADMINISTRATION CHARGE We may make a charge: (c) for any change in a request of type under provision RI-5.1 if the change is not effective from the first day in an Drawdown Pension Year or such other date each year as we allow, for any request of type under provision RI-5.1, and if we pay an additional income withdrawal in accordance with provision RI-5.2. If we intend to do so, we will inform you before we proceed with the request and you can decide whether or not to continue. The meaning of Drawdown Pension Year is given in provision RI-1. Any charge under this provision will not be greater than our then minimum administration charge, reflecting our costs in carrying out the request, as we may reasonably decide from time to time. We will reasonably determine the date on which the charge is to be made. Unless we reasonably decide otherwise, we will deduct the charge from the Control Account of the Arrangement in accordance with provision RI-3. RI-5.6 CANCELLATION OF A RETIREMENT INCOME ARRANGEMENT If an income withdrawal is in respect of the whole of a Retirement Income Arrangement, we will cancel that Arrangement when the income withdrawal becomes payable and we will have no further obligation under it. 10

RI 6 PURCHASE OF PENSION FROM A RETIREMENT INCOME ARRANGEMENT In this provision, you means any person in respect of whom an immediate pension is to be secured under a Retirement Income Arrangement in accordance with the Rules. Unless we agree otherwise, for any such Arrangement there can be only one such person. Subject to the following paragraphs, the provision Retirement Benefits from a Retirement Planning Arrangement in the Policy Provisions Booklet will also apply for starting on pension in respect of a Retirement Income Arrangement. Any reference in any other provision of the Policy Provisions Booklet to that provision will also apply for starting on pension under this provision RI-6. The Pension Start Date that you request must be no later than your 99th birthday. However, after your 75th birthday, it will not be possible to secure pension benefits with us, instead, you must instruct us to secure pension benefits with another insurer. In the sub-provision Types of retirement benefit(s) of the provision detailed above, it will not be possible to secure a lump sum benefit or a Pension Encashment from a Retirement Income Arrangement. If you choose to secure pension benefits with another insurer, as provided for in the Rules, the Open market option will apply. If by the day before your 99th birthday, we have not received a request to secure pension benefits then we will secure a pension or other type of retirement benefit for you in accordance with the Rules as we may reasonably decide. The Pension Start Date will be the later of that day, and the last day we receive the proceeds from cancelling all of the units allocated to the Arrangement. Provision RI-6 deals with what happens when you wish to start taking pension benefits from a Retirement Income Arrangement. The payment of any pension is subject to the Rules of the Scheme. The Retirement Benefits provision details deciding to take pension benefits, determining the value available for those benefits, the types of pension available and how alternatively you can choose to buy a pension from another provider by requesting an open market option. While you must take all Retirement Planning pension benefits by age 75, you must take Retirement Income benefits by age 99. Before age 75 you can choose to buy your pension benefits from us or another provider, but once you reach age 75 it must be bought from another pension provider. If this ever changes, we will tell you. Legislation prevents a lump sum benefit or a Pension Encashment being paid from a Retirement Income Arrangement. All other aspects of starting a pension in respect of a Retirement Income Arrangement will be as for starting a pension from a Retirement Planning Arrangement. If you don t tell us by age 99 that you wish to start taking pension benefits, we may buy a pension for you. 11

RI 7 DEATH BENEFIT FROM A RETIREMENT INCOME ARRANGEMENT This provision applies to a request made to us after your death for the payment of a lump sum in return for the cancellation of a Retirement Income Arrangement. The lump sum will be applied by the Scheme Administrator to provide benefits (including an annuity payable to your spouse and/or dependant if you have so chosen) in accordance with the Rules. Provision RI-7 deals with what happens if you die, you have not entered on pension in respect of the whole of a Retirement Income Arrangement of your Policy and there is no requirement for income withdrawals to continue under provision RI-5. The lump sum is paid out in the first instance to the Scheme administrator of the Scheme under which the Policy is held, and is paid out of the Scheme in a form (normally a cash sum) allowed by the Rules of the Scheme. Subject to the following paragraph, the provision Death Benefit from a Retirement Planning Arrangement in the Policy Provisions Booklet will also apply for a lump sum paid from a Retirement Income Arrangement. Any reference in any other provision of the Policy Provisions Booklet to that provision will also apply for the payment of the lump sum under this provision. The Accidental Death Benefit Amount will always be zero for a Retirement Income Arrangement. An Accidental Death Benefit increase to the lump sum can only apply to a Retirement Planning Arrangement it won t apply to a Retirement Income Arrangement. All other aspects of death benefits in respect of a Retirement Income Arrangement will be as for the death benefits from a Retirement Planning Arrangement. 12

RI 8 TRANSFER PAYMENT FROM A RETIREMENT INCOME ARRANGEMENT Subject to the Rules, you may at any time surrender in return for a transfer payment to another insurer the whole of a Retirement Income Arrangement in respect of which you have not started on pension. If there is more than one such Arrangement, all such Arrangements must be surrendered at the same time. Subject to the following paragraph, the provision Transfer Payment from a Retirement Planning Arrangement in the Policy Provisions Booklet will apply also for a transfer payment in respect of a Retirement Income Arrangement. Any reference in any other provision of the Policy Provisions Booklet to that provision will also apply to a transfer payment under this provision. Provision RI-8 allows you to give up before you have finished buying your pension or taking income withdrawals a Retirement Income Arrangement in return for the value of what you have given up being transferred to another pension scheme. All of a Retirement Income Arrangement must be given up we won t agree to a request for just part of an Arrangement to be given up. All other aspects of the transfer payment in respect of a Retirement Income Arrangement will be as for a transfer payment from a Retirement Planning Arrangement. Any reference to surrendering a specified proportion of an Arrangement in return for a transfer payment will not apply in respect of a Retirement Income Arrangement. 13

Scottish Widows Limited. Registered in England and Wales No. 3196171. Registered office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 181655. 48217 05/16