Release date: 24 August 2006

Earlier this year we advised Self Employed Retirement Plan (SERP) customers that we had to withdraw projections due to a problem with our systems. We have now fixed the problem and we are in the process of issuing revised projections to all affected customers. This mailing exercise should be complete by the beginning of October.

We have also taken the opportunity to refine our calculation approach for SERP policies, so that we can provide each policyholder with a better indication of their potential projected benefits.

The changes that we have made will mean that in many cases the projected fund values will have increased, although some will have reduced. This is because the values have been reviewed to more closely reflect the policy's fair share of the with-profit fund. Please be assured that your projection will be no lower than the guarantees set out in your policy. In most cases the difference between the projected values at the lower and higher growth rates will have narrowed. This is because the projections are now more realistic and reflect the guarantees in the policy.

We have also amended the way we calculate transfer values on these policies, again taking the opportunity to refine our calculation approach. The refinement will mean that transfer values for policyholders under the age of 60 years will more closely reflect the policy's fair share of the with-profits fund. For policyholders aged 60 and over, we will continue to pay transfer values equal to the value of immediate pension benefits payable at the time of the claim.

Our Questions and Answers page may provide you with answers to any questions you may have if you have been affected by these changes. If you require any further help please visit our contact us section.

Please remember that projected values are not guaranteed, and we may change the values and the basis of calculation on any future date without notice.