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Clerical Medical Investment Group Limited
Clerical Medical’s Individual Stakeholder Plan is a personal pension – a tax-efficient investment
designed to help you save for your retirement.
Clerical Medical’s Individual Stakeholder Plan aims to give you consistently good long-term returns
and personal control over your pension benefits. It could ultimately help you realise the retirement
lifestyle you want.
Clerical Medical strongly recommends you seek professional advice from a financial adviser before you
make any decisions about your pension.
The value of investments can go down as well as up and is not guaranteed.
INDIVIDUAL STAKEHOLDER PLAN
FutureProof
● A range of investment funds to choose
from.
● Competitive charges which comply with
the Stakeholder Pension regulations:
● Annual management charge only.
● No difference between the buying and
selling price of units.
● No plan fees or set-up charges.
● Currently no charge for switching
between investment funds.
● You can pay contributions regularly and/or
make one-off contributions or transfer
payments from previous pension schemes
you may have belonged to at any time.
● You can increase, decrease, miss or stop
regular contributions at any time without
charge.
● Contributions will need to be maintained
in order to help meet the required fund for
the income you want in retirement.
● Gives you the opportunity to create a fund
portfolio that suits your individual
circumstances and attitude to risk.
● Low costs which provide value for money.
● You can change the plan to suit you, as
your circumstances change. The plan
offers real control over the amount you
want to pay.
Product features Benefits for you
Product information
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Clerical Medical Investment Group Limited
● No charges for taking early retirement or
transferring to another provider.
● Please remember that if you retire early
your income in retirement will be lower
than planned.
● Return of fund on death.
● Choice of benefits.
● You can retire earlier than you originally
planned or transfer your fund to another
provider without a charge being applied.
● If you should die before you take your
benefits, your beneficiaries will receive the
full value of your fund.
● Subject to Inland Revenue requirements,
you can take your benefits when and in the
format most suited to your circumstances
at that time – in most cases you will be
able to take part of your fund as a tax-free
cash lump sum. The remainder will need
to be used to buy a pension at that time.
Product features Benefits for you
Options Benefits for you
● Automatic increase option available for
regular contributions. Contributions can
be set to increase each year by a fixed
percentage or in line with the National
Average Earnings Index or Retail Prices
Index.
● Contracting-out facility.
● Should you become ineligible to pay into
the Individual Stakeholder Plan you can
transfer to any other type of approved
pension arrangement without charge.
● You protect your contributions against
inflation by arranging for them to increase
by a set rate each year.
● You can use your plan to ‘contract-out’ of
the State Second Pension. You will need to
investigate if this is the best option for
you.
● You have peace of mind knowing that you
are able to continue providing for your
retirement whatever your circumstances.
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The following charges comply with the
Government’s Stakeholder Pension legislation.
Clerical Medical’s Individual Stakeholder Plan is
approved by the Inland Revenue and registered
by the Occupational Pensions Regulatory
Authority.
Minimum initial contribution amounts
(net of tax)
Monthly/Annual/Single/Transfer: £20
Additional contribution amounts
The minimum additional contribution if you
want to increase your regular contribution is £1.
The minimum additional contribution if you
want to pay an additional single contribution or
transfer is £20.
Minimum term
There is no minimum term.
Allocation rates
100% of your contributions will be invested in
your plan.
Annual management charge
We take a daily charge equivalent to 1% of the
value of the fund each year for managing your
investment.
It is reflected in the unit prices of our
unit-linked funds.
Other charges
If your circumstances change, your regular
contributions can be reduced, missed or
stopped without charge.
You can also take your benefits earlier than you
originally planned or transfer your fund to
another provider without charge.
Technical details and charges Large fund bonus
At the end of each plan month your plan will be
valued. When the value exceeds the levels
shown in the table below, additional units will
be added to your plan. The amount of
additional units is calculated as one twelfth of
the annual calculation rates shown below times
the total value of your plan.
Total fund value Annual calculation rate
Less than £10,000 0.00%
£10,000 – £19,999 0.05%
£20,000 – £49,999 0.10%
£50,000 + 0.20%
The amount of additional units added may vary
each month depending on the size of your fund
at the time.
If, during the plan month, the total value of
your plan decreases due to market conditions,
the rate of large fund bonus is guaranteed not
to be less than that applied the previous
month.
If the fund value decreases because some
funds were transferred out to another pension
plan or were used to buy a pension or benefits,
the annual calculation rate used will be based
on the fund value at the end of the plan month
and may reduce.
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Eligibility
Clerical Medical Investment Group Limited
Many people are able to pay at least £3,600
(gross) per year into a stakeholder pension
scheme without any reference to earnings. You
are eligible to pay this amount into a
stakeholder pension if:
● you are under the age of 75
● you are a UK resident, a crown servant or
the spouse of a crown servant
and any of the following apply to you:
● you are an employee (who works either
full-time, part-time or on a casual basis)
without access to a company pension
scheme
● you are an employee (who works either
full-time, part-time or on a casual basis)
who is a member of your company pension
scheme, and you are not, and have not
been, a controlling director of any company
at any time in the current tax year or in any
of the five tax years preceding it (excluding
tax years prior to 2000-2001). On 5 April of
any one of the five tax years preceding the
current tax year (excluding tax years prior to
2000-2001) you held an office or
employment (self-employment does not
count for this purpose) and in that tax year
the annual equivalent of your P60 earnings
did not exceed £30,000
● you are a controlling director and not a
member of that company’s pension scheme
● you are self-employed
● you are retired
● you are not working.
If you want to pay more than £3,600 (gross)
per year into your Individual Stakeholder Plan,
you are able to do so as long as:
● we have evidence of your earnings at some
point within the last five years and that
evidence supports your proposed
contribution level
● you are not a member of a company
scheme.
Anybody is able to pay in to the Individual
Stakeholder Plan on behalf of somebody else.
Investment funds
A range of unit-linked funds is available for you
to invest in.
When you are considering making an
investment it is important to note that, as well
as the prospect of making a gain, all forms of
investment involve a degree of risk, some more
than others.
Clerical Medical’s funds each have a different
degree of risk and potential for gain.
As a general rule, lower risk can mean
potentially lower gains with potentially lower
losses and higher risk can mean potentially
larger gains with potentially larger losses:
Your contributions can be invested in different
assets in differing proportions. Each particular
fund could invest in one or more of the
following:
● UK Shares
● Foreign Shares
● Gilts & Overseas bonds
● Property
● Cash deposits
When you are selecting your funds for your
Individual Stakeholder Plan you should think
about:
● Your attitude towards investment risk
● The amount of time before you wish to take
benefits.
The funds available to you through this plan are
shown overleaf.
Possible gain
Possible loss
Low risk
High risk
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Clerical Medical Investment Group Limited
A range of unit-linked funds are available for
investment.
Unit-linked funds
Balanced Managed Fund
Cautious Managed Fund
Adventurous Managed Fund
Non-Equity Managed Fund
International Fund
UK Equity Fund
Equity High Income Fund
UK Smaller Companies Fund
European Fund
Japan Fund
North American Fund
Pacific Fund
Ethical Fund
Cash Fund
Gilt & Fixed Interest Fund
Index-Linked Fund
Property Fund
Halifax Fund
Retirement Protection Fund
UK Equity Tracker Fund
You will find more information about these
funds in our ‘Investment funds portfolio’ leaflet
(reference X695).
You can change your choice of investments at
any time by switching all or some of your units
into a different fund or funds. There is currently
no charge for doing this.
With-profits is not an available fund choice for
the FutureProof Individual Stakeholder Plan.
Further information
Full written details of Clerical Medical’s
Individual Stakeholder Plan are available on
request from your financial adviser, or direct
from our head office in Clevedon. Please write
to Clerical Medical Investment Group Limited,
Castlewood, Tickenham Road, Clevedon
BS21 6BD.
Details of the exact charges that will apply to
your plan will be shown in your personal
illustration. The charges may be more or less
than shown above.
We reserve the right to change the amount of
any charge, but in the case of the annual
management charge we aim to give three
months’ notice of any such change.
The withdrawal of any investment may, in
exceptional circumstances, be deferred for up
to one month.
If you choose to invest in a fund that invests
partly in property, where property valuation is a
matter of judgement by a valuer, we may
postpone encashment for up to six months.
This is because those assets can be less easy
to sell than stocks and shares.
Every care has been taken to make sure that
the information given in this leaflet is correct
and in accordance with our understanding of
current legislation and Inland Revenue practice.
The law and Inland Revenue practice are
subject to change, which cannot be foreseen.
Fund details
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Part of the HBOS GroupClerical Medical Investment Group Limited. Registered Office 33 Old Broad Street, London EC2N 1HZ.Registered in England and Wales, Registered No. 3196171. Authorised and regulated by the Financial Services Authority. A member of ABI.www.clericalmedical.co.uk