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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