Eagle Star Buy-out Bond. Customer Brochure

Transcription

1 Eagle Star Buy-out Bond Customer Brochure

2 Why Zurich Life Pensions for your retirement needs? Financial strength Investment options Award winning customer service Online Access Proven investment performance

3 Eagle Star What is a Buy-out Bond? A Buy-out Bond (also called a Personal Retirement Bond) is a retirement investment contract approved under Chapter One, Part 30 of the Taxes Consolidation Act, It may be used to transfer the cash value of a former occupational pension scheme member s retirement benefits into the ownership of the individual member. The value can be transferred to a Buy-out Bond where the scheme member leaves the scheme due to: the member leaving employment, or the scheme closing down, or the member deciding to leave the pension scheme. The value is invested in the Eagle Star Pension Funds through the Buy-out Bond contract. As the Trustees have responsibility for the occupational pension scheme, they transfer the value to the Buy-out Bond. The Buy-out Bond continues to be subject to the rules of the scheme and the legislation governing occupational pensions. Why an Eagle Star Buy-out Bond from Zurich Life? By investing in an Eagle Star Buy-out Bond you are investing with a company that has extensive experience of providing Buy-out Bonds and other retirement contracts. We also have extensive experience of assisting Trustees with bulk Buy-out Bond purchases. Zurich Life provides Buy-out Bonds with clear and competitive charging structures; has an award-winning service excellence track record; and, has produced consistent investment returns through our Matrix range of funds. And, if you do not wish to make your own investment choices from our range of funds you can avail of PensionSTAR our Lifestyle Investment Strategy. PensionSTAR - Lifestyle Investment Strategy The PensionSTAR Investment Strategy is an automatic mechanism that gradually transforms your Buy-out Bond investment from a higher reward/risk fund to a lower reward/risk fund five years from the normal retirement age under your occupational pension scheme. This protects you from the impact of a stock market crash prior to retirement. The Eagle Star Dynamic, Performance, Balanced and Active Fixed Income Funds are the four main funds used in the PensionSTAR Investment Strategy. The fund used initially will depend on the number of years to run to the normal retirement age under your occupational pension scheme. Years to Retirement Age Fund Name Risk / Return Profile Indicative Equity Range More than 25 years Dynamic High 75% - 100% More than 15 years Performance High 65% - 90% More than 5 years Balanced Medium 50% - 75% 5 years or less Active Fixed Income [PensionSTAR (Annuity) only] Moderate 0% The Government has recently announced an insurance levy of 1% to be applied on a range of life assurance policies. Where this is applicable to your policy Zurich Life will alter your premium or benefits accordingly.

4 Buy-out Bond There are two PensionSTAR Investment Strategies, PensionSTAR (Annuity) and PensionSTAR (ARF). These have been designed to accommodate clients funding for either an annuity or an ARF* on retirement. Your Buy-out Bond investment is switched into a lower risk fund during the last five years of the contract the Active Fixed Income Fund if you opt for the Annuity strategy and the Balanced Fund if you opt for the ARF strategy. The fund is transferred across on a monthly basis (i.e. 1/60th, 1/59th, 1/58th...each month) so that at retirement age your fund is invested 100% in the respective fund. Under PensionSTAR (Annuity) the value of the Active Fixed Income Fund will change broadly in line with changes in the cost of annuities as interest rates fluctuate, thus helping to protect you against the risk of a sudden rise in the price of annuities close to retirement. The Balanced Fund is used under PensionSTAR (ARF) as it is typical of the type of fund used for an ARF investment. Frequently Asked Questions When can I take the value of the Buy-out Bond? You can draw benefits from the bond at any time after age 50, provided you are not then working with the employer from whose scheme the transfer came. You do not have to retire from your then current employment to draw the benefits. What form will the benefits take? In general, you will be entitled to take part of the value of your accumulated fund as a tax-free lump sum and to use the balance to provide a pension through the purchase of an annuity for your lifetime (and the lifetime of your spouse, if required). The amount of the lump sum benefit will be dependent on your term of service with the employer, your earnings at the time of leaving the scheme, and the application of a Consumer Price Index (CPI) related factor applied to those earnings. Where you were a 5% Director at any time within three years prior to leaving the scheme you may be able to invest the balance in an Approved Retirement Fund (ARF) as an alternative to purchasing an annuity. (Further details on ARF investments are available from your Financial Advisor.) How do I find out what my Buy-out Bond is worth? If you select the option to have access to your policy details online, you will be issued with a secure user name, password and pin number. You can log on to and view the current and projected values of your Buy-out Bond along with other details of all policies you hold with Zurich Life. How do I apply for an Eagle Star Buy-out Bond? To apply for an Eagle Star Buy-out Bond you must complete and sign an application form, including a declaration that you are giving up your rights under the pension scheme. The application form must also be signed by the scheme Trustees. Under certain circumstances the scheme Trustees are also entitled to transfer the value of your benefits to a Buy-out Bond, but they must inform you of this in writing beforehand. * Revenue restrictions mean that not all clients can invest in an ARF at retirement. For more information please consult with your Financial Advisor. Talk to your Financial Advisor about Buy-out Bonds or other alternative pension arrangements on leaving employment.

5 Why choos Financial strength Market Capitalisation* to the nearest billion S&P Financial Strength Ratings Zurich 19.6bn AA- Great West Life 15.9bn AA Aviva 11.3bn AA- Standard Life 5.1bn A+ Bank of Ireland 2.0bn A ** AIB 1.6bn A ** Irish Life & Permanent 0.9bn BBB+ ** As at 31/07/2009. * Source: Bloomberg. ** The rating highlighted is the long term credit rating as a financial strength rating is not available. Standard & Poor s (S&P) a ratings agency, provides ratings on the financial strength of companies. The highest rating possible is AAA with AA, A, BBB, etc. being lower financial strength ratings. In the table above therefore, the AA- rating is a superior rating to A+. Deposit: Managed: Protected: Choice of high-quality investment options Deposit Plus Focused on Equity: 5 5 Global 5 5 Asia Pacific 5 5 Americas 5 5 Europe Irish Equity International Equity Dividend Growth Eurozone Equity American Select* European Select* Global Select* Unitised With Profits: Dynamic Performance Balanced Cautiously Managed Secure Fixed Interest/Bonds: Active Fixed Income Long Bond Strategy: Diversified Assets Earth Resources Green Resources Protected Balanced Protected International Equity Protected Dividend Growth Protected Dynamic (Series B) Index Tracker / ETF India Equity Europe ex-uk Index Japan Index UK Index TopTech 100 Global Commodities Gold European (Ex-UK) Property Australasia Property SuperCAPP Lifestyle Strategy PensionSTAR * These funds are managed by Threadneedle Investments and are subject to an additional management charge of 0.5% per annum. These funds are managed by Barclays Global Investors.

6 e Zurich Life? Award winning performance & service Most recent MoneyMate & Investor Magazine Awards Best Investment Fund Manager Best Balanced Managed Pension Fund Best Balanced Managed Investment Fund Best Insurance Provider 600 Proven 400 investment 300 performance Pension fund performance from 01/11/89 to 31/07/09 Friends First 186% 190% 194% 205% 230% Hibernian Life Standard Life Irish Life New Ireland 569% 541% 689% 260% Canada Life Eagle Star Performance Eagle Star Balanced 1000 Source: MoneyMate. All figures relate to the individual pension managed balanced sector. The returns shown are based on investments in these funds and do not relate to premiums paid into a policy % 689% Warning: Past performance is not a reliable guide to future performance. The value of an investment may go down as 600 well as up. Benefits may be affected by changes in currency exchange rates. Online % The innovative Life Client Centre at gives clients access to live information about their pension: Current fund values Hibernian Life Friends First Projected fund values Contribution history 257% 260% 284% 301% 318% Standard Life Irish Life New Ireland Canada Life Sample of Client Centre access Eagle Star Performance Eagle Star Balanced Eagle Star Dynamic

7 Presenting the Eagle Star Buy-out Bond Competitive charging structure Experience in providing Buy-out Bond solutions Innovative individual lifestyle strategy

8 Print Ref: PB Zurich Life Assurance plc Eagle Star House, Frascati Road, Blackrock, Co. Dublin, Ireland. Telephone: Fax: Website: Zurich Life Assurance plc is regulated by the Financial Regulator. Intended for distribution within the Republic of Ireland. The information contained herein is based on Zurich Life s understanding of current practice as at August 2009 and may change in the future.