pension life assurance

The following is a summary of the positions taken by each of the Life Offices in respect of the 'new' 1% Levy on Protection/Pension/Investment/Savings policies, as at 30/07/2009.

Standard Life

The levy will be deducted from any premiums invested into Standard Life savings and investments policies on or after 1 April 2010.

Standard Life will continue to absorb the cost of the levy on premiums paid on protection policies. Updated 30/03/2010

Eagle Star Zurich

Will be collecting the 1% premium levy from 1st August 2009 on all protection and group risk policies.

For new ( Self-employed Pensions(RACs),PRSAs, ARFs, Annuities, Personal Buy-Out-Bonds, Investment and Savings contracts) business transacted after 1st of August, they will meet the cost of the 1% premium levy for premiums paid in August on any new business (including single premium top-ups) that are introduced before 1st September. They will not make any retrospective charge for such payments regardless of how the IIF proposals are received. They will review the situation in the coming weeks and will advise if this interim approach is to continue for September.

The 1% Levy applies to regular contributions to savings plans with effect from 01/07/2010. Levy applies to Single Premium Investments from 01/09/2010. Updated 13/09/2010

For existing ( Self-employed Pensions, PRSAs and Savings) business they intend to defer applying the 1% premium levy on these contracts pending the conclusion of discussions with the Department of Finance. Given the uncertainty as to what changes to the levy might be made as a result of these discussions, they reserve the right to deduct outstanding levies from the contracts when and if it is appropriate to do so.

Quinn Life

As part of Quinn Life's 10th anniversary celebrations, Quinn Life will cover the cost the levy for new and existing investments and savings business for their customers in 2010. Updated 02/03/2010

Caledonian Life

If a client has a Regular Premium protection policy (for example payable monthly or annually) their payment will increase by 1% from 1st August. If a client makes their payment by direct debit their payment will increase automatically. If a client makes their payment by other methods, Caledonian Life we will notify them of the increased payment in their next renewal notice.

The levy does not apply to existing Single Premium Investments. However, the levy will apply to all top-ups to existing policies and all new policies taken out from 1st August. 1% of any single premium received by us from 1st August will be deducted for the levy and paid to Revenue.

Irish Life

Irish Life implemented the Government levy for protection plans on the 01 August 2009.Protection plans include life cover, mortgage protection plans and plans which pay an amount on disability or the diagnosis of a specified illness.

This levy will also be introduced on Savings plans from the 01 February and on new investment plans from 01 March 2010. Updated 30/03/2010

Hibernian Aviva

Hibernian Aviva will apply the levy on all protection policies from August 1.

Pending the outcome of industry discussions with the Department of Finance, Hibernian Aviva will not apply the 1% levy to pension and investment products while the discussions with the Department continue. Hibernian Aviva will review this position when they have greater clarity.

Hibernian Aviva will not apply the 1% levy retrospectively to premiums for pension and investment business received during this period. Therefore, we will not be going back to customers to apply the levy to pension or investment premiums already paid.

Friends First

For Executive Pension, Group Defined Benefit and Defined Contribution Schemes no levy will apply.

For Individual Protection, Group Protection and PRSA type contracts; pending outcome from Revenue, the Levy will only be collected from 1st January 2010

For Single Premium Pensions, Investments, ARFs and Buy-Out-Bonds; pending outcome from Revenue, the Levy will only be collected from clarification date. There will be no retrospective collection.

For Regular Premium Pensions, Savings and Life Insurance; pending the outcome from Revenue the Levy will be collected retrospectively to 1st August 2009.

New Ireland

Will collect the additional 1% of the premium from customers on the following policies with effect from 1st of August: life cover policies,mortgage protection policies and policies which pay an amount on a specified illness or on disability.

They are deferring collecting the levy for investment and pension customers pending the outcome of discussions with the Department of Finance.

Canada Life

Protection Business - The levy will be applied with effect from 1st August 2009

Existing Pension & Investment Business - Since August 2009 Canada Life has been applying the levy in arrears on existing savings and investment policies. However, from April 2010 Canada Life will collect the new 1% levy as part of a policyholder's existing payment method by adding it to their premium. In addition, Canada Life will begin to apply the levy on certain policies which it has exempted from the levy up until now.

Letters informing savings and investment policyholders of the changes to their policies, as well as a list of frequently asked questions, have been posted this week. Meanwhile, all new and existing pension clients will receive a letter later in the month to inform them that the 1% levy no longer applies to pensions (as per the Finance Act 2010) and that the levy is no longer being applied to their policies.

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