ACORN LIFE PERSONAL PENSION PLAN SINGLE CONTRIBUTION PROVISIONS

Transcription

1 ACORN LIFE PERSONAL PENSION PLAN SINGLE CONTRIBUTION PROVISIONS 1. Summary (a) This Policy is a Single Contribution Personal Pension Plan issued by us, Acorn Life Limited (the Company ). The purpose of the Policy is to provide you, the Policy Owner, with retirement benefits under Section 784 of the Taxes Consolidation Act (b) The Single Premium is used to purchase units in the Acorn Life Deposit Fund 4 and the BCP Asset Management Limited ( BCP ) Structured Fund or Funds that you have chosen to invest in. These units are allocated to your Policy Unit Account. (c) When you decide to draw benefits from your policy, (which will normally be between your 60th and 70th birthday), the value of the Policy Unit Account is used to provide you with your retirement benefits. 2. Definitions Acorn Life Limited The Company providing the benefits under this policy. All references to we, us, the Company, Acorn Life etc, refer to Acorn Life Limited. BCP Structured Funds The Funds offered to you by BCP and that are available to this policy; namely the Split Deposit Absolute Return Bond 9, the 90 Absolute Return Bond 5 and the 120 Absolute Return Bond 3. These Funds provide a high level of capital security (between 95% and 100%) plus a potential additional return linked to the performance of the Carmignac Patrimoine Fund. Commencement Date The date on which the policy legally comes into force as shown in the Policy Schedule. Fund The policy invests in the available Fund(s) that you have chosen. Each Fund is a group of assets and liabilities which we identify and account for separately. The purpose of the Funds is to allow us to calculate the benefits under the policy. We remain the sole owners of the assets of each Fund. Maturity Date The end date of the term of the BCP Structured Funds i.e. 3 rd April Policy Anniversary Any annual anniversary of the Commencement Date. Policy Owner The person entering into the contract with us and responsible for paying the Single Contribution. All references to you and your refer to the Policy Owner. Policy Schedule The policy document which details in full the cover provided under the policy, the Single Contribution payable, the Commencement Date and the selected Fund(s). Provisions The entire contents of this document. Policy Unit Account The Policy Unit Account at any date means the Units then credited to the policy. Its value at anytime is the value of the Units in the account at the then current Unit Bid Price. Acorn Life Limited is regulated by the Central Bank of Ireland Page 1 of 8 AC

2 Single Contribution This is the amount payable into the Policy before it may commence, as stated on the Policy Schedule. Unit Bid Value The Unit Bid Value of a Fund at any date means the value of the units in the Fund at that date at the then current Unit Bid Price. 3. General Conditions (a) The Provisions of the Policy are based on current legislation and taxation. Sometimes changes may occur in relation to taxation, legislation or other circumstances which make it impractical, or unfair, to implement the Provisions fully. In this case, the Company may vary the Provisions. (b) When considering if a change in circumstances results in the Provisions becoming unfair the Company will consider: (i) the effect of the change on the balance between your interests and our interests, and (ii) the effect of the change on the balance between the interests of different groups of Policy Owners. (c) You can question any decision of the Company if you feel that it is not in accordance with Provisions 3 (a) or 3 (b) above. If you and the Company do not agree on a decision it will be referred to the Financial Services Ombudsman, or a person nominated by the Ombudsman, for adjudication. (d) You should note that the Company carries out regular reviews of the adequacy of the charges applicable to this class of Policy. When considering if a change to any of the charges is required, we will advise you at least 30 days in advance of the change taking effect. 4. Revenue Approval This contract is approved by the Revenue Commissioners under Section 784 of the Taxes Consolidation Act No alterations will be permitted unless they are first approved by the Revenue Commissioners. This approved status means that the Revenue Commissioners will allow the Policy to benefit from the favourable tax treatment available to this type of pension policy. 5. Payment of Contribution The Single Contribution is payable before the Commencement Date. No further Contribution may be paid into this Policy. 6. Funds General (a) Each Fund is a group of assets and liabilities which we identify and account for separately. The purpose of the Funds is to allow us to calculate the benefits under the Policy. We remain the sole owner of the assets of each Fund. (b) Each Fund receives all income and profits that arise from its assets, pays all costs incurred in the purchase and sale of its assets, and pays any interest and expenses related to its liabilities. (c) Each Fund is divided into a number of Fund Units of equal value. Whenever assets are added to the Fund, we create Fund Units with a value equal to that of the assets added, less any related liabilities. Whenever assets are withdrawn from the Fund, we cancel Fund Units with a value equal to that of the assets withdrawn. Acorn Life Limited is regulated by the Central Bank of Ireland Page 2 of 8 AC

3 7. Allocation of Contribution to Funds (a) The Acorn Life Deposit Fund 4 (i) On the Commencement Date we will allocate 7% of your Single Contribution investment to the Acorn Life Deposit Fund 4. On 3 rd July 2014 and on every anniversary of that date up to and including 3 rd July 2019, we will make a deduction from the Acorn Life Deposit Fund 4 to cover the cost of the 1% per annum management charge that applies to your policy from 3 rd July 2014 to 3 rd April The amount deducted in respect of this charge is based on the total Policy Value as at the date of deduction. (ii) Two working days following 3 rd April 2020, the remaining units, if any, in the Acorn Life Deposit Fund 4 will be exchanged for an equal value of units in the Acorn Life Pension Deposit Fund 2. Other options may be made available at that time at the Company s absolute discretion. (iii) If you wish for your retirement benefits to start prior to the Maturity Date of the BCP Structured Funds you will lose the value of the units purchased by the 7% investment in the Acorn Life Deposit Fund 4 on the Commencement Date. (iv) The units purchased by the 7% investment in the Acorn Life Deposit 4 on the Commencement Date may not be transferred out to another approved pension contract prior to the Maturity Date of the BCP Structured Funds. (b) The BCP Structured Funds (i) 93% of your Single Contribution investment is allocated to the BCP Structured Fund(s) that are available to this policy (as described in Provisions 9, 10 and 11) according to the fund selection chosen by you at outset. The purpose of your investment in the BCP Structured Fund(s) is to provide you with capital security on maturity of the fund(s) after five years and nine months, with a potential further bonus relating to the performance of the Carmignac Patrimoine Fund. (ii) The BCP Structured Fund(s) have a 5 year and 9 month investment term from 3 rd July 2014 to 3 rd April Two working days following the 3rd April 2020, the units in the BCP Structured Fund(s) will be exchanged for an equal value of units in the Acorn Life Pension Deposit Fund 2. Other options may be made available at that time at the Company s absolute discretion. (iii) The units purchased by the 93% investment in the BCP Structured Fund(s) may not be transferred out to another approved pension contract prior to the Maturity Date of the BCP Structured Funds. (iv) For each of the BCP Structured Funds, Acorn Life will effect a deposit contract with Investec Bank PLC (Irish Branch) ( Investec ) under which Investec will provide Acorn Life Limited with the capital security and investment returns for your investment. Acorn Life s liability is limited to the maturity amounts that it actually receives from Investec under the terms of this deposit contract with them. In the event that Investec does not repay the full maturity amount to Acorn Life, the Unit Bid Prices calculated in Provisions 9 (e), 10 (c) and 11 (c) below, and therefore the value of your investment, will be reduced to reflect the amount of maturity proceeds actually received by Acorn Life compared to those due. The BCP Structured Funds are not sponsored, endorsed or promoted by Investec. Investec will make payments only to Acorn Life Limited and will have no liability to any potential investor or any member of the public. Investec is regulated by the Central Bank of Ireland. 8. Acorn Life Deposit Fund 4 (a) The Company values the Acorn Life Pension Deposit Fund 4 each working day. Quoted investments are valued at market dealing prices. Other investments are valued at amounts provided by the investment managers of the fund. The Fund Unit Value will be calculated by dividing the value of the fund by the number of fund units in existence. (b) Unit Offer and Bid Prices are calculated by the Company from the fund s Policy Unit Value. The Policy Unit Value is calculated by increasing or reducing its value at the previous time the Acorn Life Limited is regulated by the Central Bank of Ireland Page 3 of 8 AC

4 fund was valued to take account any change in the Fund Unit Value (as calculated in Provision 8 (a)) since the previous time the fund was valued. (c) The Unit Bid Price and the Unit Offer Price will generally be equal to the Policy Unit Value rounded to the nearest one tenth of one cent. (d) Despite Provision 8(c), if it is in the interests of Policy Owners in general, the Company may further adjust the Unit Offer and Bid Prices as we deem necessary. 9. BCP Split Deposit Absolute Return Bond 9 Fund ( SDARB 9 Fund ) (a) The Company will determine the value of the SDARB 9 Fund every three months or more frequently as it shall determine. The value of the Fund so determined divided by the number of Fund Units then outstanding shall be the Fund Unit Value. (b) For the SDARB 9 Fund the Unit Bid Price is equal to the Fund Unit Value. The Unit Offer Price only applies on the 3 rd July 2014 and is equal to 100 cent on that date. (c) 20% of any investment in the SDARB 9 Fund is placed in a 12 month fixed high yield deposit account. This account matures on 3 rd July 2015 and will return 105% of this portion of the investment which will then be reinvested to the Acorn Life Deposit Fund 4, or other Funds that may be made available at that time at the Company s absolute discretion. On 3 rd July 2015 the Unit Bid Value of the SDARB 9 Fund will be reduced in accordance with the reinvestment to the Acorn Life Deposit Fund 4 (or other Funds). (d) 80% of any investment in the SDARB 9 Fund is linked to 80% of the performance of the Carmignac Patrimoine Fund over the 5 year and 9 month term of the SDARB 9 Fund from 3 rd July 2014 to 3 rd April (e) The Unit Bid Price of the SDARB 9 Fund on the working day following 3 rd April 2020 will be set to 100 cent and will then be increased to allow for the growth, if any, in the Carmignac Patrimoine Fund. This growth will be calculated by: i. subtracting the closing value of the Carmignac Patrimoine Fund on the 3 rd July 2014 from the average of the closing value of the Carmignac Patrimoine Fund on the 3 rd of each month from 3 rd April 2019 to 3 rd April (Note: where the 3 rd is not a trading day, the closing level of the index on the following scheduled trading day is used.) ii. the result from (i) will then be divided by the closing value of the Carmignac Patrimoine Fund on the 3 rd April 2020 and multiplied by 80%. iii. the result from (ii) will then be subject to a minimum of 0%. (f) The Unit Bid Price will generally be equal to the Policy Unit Value. (g) Notwithstanding Provisions 9 (b) and 9 (e) above the Company may, for the protection of the interests in general of Policy Owners, increase or reduce the Unit Offer and Bid Prices as it may deem necessary. (h) A 1% per annum management charge applies to your policy from 3rd July 2014 to 3rd April 2020, as referred to in Provision 7 (a). The charges that apply to the SDARB 9 Fund are implicit within the structure of the Fund and are in addition to the management charge. Details of these implicit charges can be seen in the policy issue pack that you receive once your policy is issued. 10. BCP 90 Absolute Return Bond 5 Fund ( 90 ARB 5 Fund ) (a) The Company will determine the value of the 90 ARB 5 Fund every three months or more frequently as it shall determine. The value of the Fund so determined divided by the number of Fund Units then outstanding shall be the Fund Unit Value. (b) For the 90 ARB 5 Fund the Unit Bid Price is equal to the Fund Unit Value. The Unit Offer Price only applies on the 3 rd July 2014 and is equal to 100 cent on that date. Acorn Life Limited is regulated by the Central Bank of Ireland Page 4 of 8 AC

5 (c) The Unit Bid Price of the 90 ARB 5 Fund on the working day following 3 rd April 2020 will be set to 100 cent and will then be increased to allow for the growth, if any, in the Carmignac Patrimoine Fund. This growth will be calculated by: i. subtracting the closing value of the Carmignac Patrimoine Fund on the 3rd July 2014 from the average of the closing value of the Carmignac Patrimoine Fund on the 3rd of each month from 3rd April 2019 to 3rd April ii. (Note: where the 3rd is not a trading day, the closing level of the index on the following scheduled trading day is used.)the result from (i) will then be divided by the closing value of the Carmignac Patrimoine Fund on the 3 rd April 2020 and multiplied by 90%. iii. the result from (ii) will then be subject to a minimum of 0%. (d) The Unit Bid Price will generally be equal to the Policy Unit Value. (e) Notwithstanding Provisions 10 (b) and 10 (c) above the Company may, for the protection of the interests in general of Policy Owners, increase or reduce the Unit Offer and Bid Prices as it may deem necessary. (f) A 1% per annum management charge applies to your policy from 3rd July 2014 to 3rd April 2020, as referred to in Provision 7 (a). The charges that apply to the 90 ARB 5 Fund are implicit within the structure of the Fund and are in addition to the management charge. Details of these implicit charges can be seen in the policy issue pack that you receive once your policy is issued. 11. BCP 120 Absolute Return Bond 3 Fund ( 120 ARB 3 Fund ) (a) The Company will determine the value of the 120 ARB 3 Fund every three months or more frequently as it shall determine. The value of the Fund so determined divided by the number of Fund Units then outstanding shall be the Fund Unit Value. (b) For the 120 ARB 3 Fund the Unit Bid Price is equal to the Fund Unit Value. The Unit Offer Price only applies on the 3 rd July 2014 and is equal to 100 cent on that date. (c) The Unit Bid Price of the 120 ARB 3 Fund on the working day following 3 rd April 2020 will be set to 95 cent and will then be increased to allow for the growth, if any, in the Carmignac Patrimoine Fund. This growth will be calculated by: i. subtracting the closing value of the Carmignac Patrimoine Fund on the 3rd July 2014 from the average of the closing value of the Carmignac Patrimoine Fund on the 3rd of each month from 3rd April 2019 to 3rd April ii. the result from (i) will then be divided by the closing value of the Carmignac Patrimoine Fund on the 3 rd April 2020 and multiplied by 120%. iii. the result from (ii) will then be subject to a minimum of 0%. (d) The Unit Bid Price will generally be equal to the Policy Unit Value. (e) Notwithstanding Provisions 11 (b) and 11 (c) above the Company may, for the protection of the interests in general of Policy Owners, increase or reduce the Unit Offer and Bid Prices as it may deem necessary. (f) A 1% per annum management charge applies to your policy from 3rd July 2014 to 3rd April 2020, as referred to in Provision 7 (a). The charges that apply to the 120 ARB 3 Fund are implicit within the structure of the Fund and are in addition to the management charge. Details of these implicit charges can be seen in the policy issue pack that you receive once your policy is issued. 12. Acorn Life Pension Deposit Fund 2 (a) The Company values the Acorn Life Pension Deposit Fund 2 each working day. Quoted investments are valued at market dealing prices. Other investments are valued at amounts provided by the investment managers of the fund. The Fund Unit Value will be calculated by dividing the value of the fund by the number of Fund Units in existence. Acorn Life Limited is regulated by the Central Bank of Ireland Page 5 of 8 AC

6 (b) Unit Bid Price is calculated by the Company from the fund s Policy Unit Value. The Policy Unit Value is calculated by increasing or reducing its value at the previous time the fund was valued to take account of: (i) any change in the Fund Unit Value (as calculated in Provision 12 (a)) since the previous time the fund was valued; (ii) a Management Charge equal to the daily equivalent of one half of one percent per annum of the Policy Unit Value. We reserve the right to vary the amount of this charge in the future. If future legislation should introduce any taxes or levies for which we are liable on this class of business, then we also reserve the right to make any other adjustments to the Policy Unit Value for our own benefit when Units are allocated. (c) The Unit Bid Price will generally be equal to the Policy Unit Value rounded to the nearest one tenth of one cent. (d) Despite Provision 12(b), if it is in the interests of Policy Owners in general, the Company may further adjust the Bid Prices as we deem necessary. 13. Allocation of Contribution to Units (a) The Single Contribution you pay will be used in full to purchase Units when we receive them. (b) The number of Units purchased will be equal to the Single Contribution divided by the next calculated Unit Offer Price. These Units are added to the Policy Unit Account. The value of the Policy Unit Account at any time will be equal to the number of Units of each Fund remaining in the Policy Unit Account multiplied by the Fund s Unit Bid Price. 14. Unit Deductions (a) On 3rd July 2014 and on every anniversary of that date up to and including 3rd July 2019, we will make a deduction from the Acorn Life Deposit Fund 4 to cover the cost of the 1% per annum management charge that applies to your policy from 3rd July 2014 to 3rd April The amount deducted in respect of this charge is based on the total Policy Value as at the date of deduction. We will provide you with details of the amounts of these deductions on a written request. (b) Units will also be deducted from the Acorn Life Deposit Fund 4 to cover the cost of the Pension Fund Levy and any other levies that may be applied to your policy. (c) If there are insufficient Units in the Acorn Life Deposit Fund 4 to cover the cost of the management charge and any levies that may apply we will make the relevant deduction from the BCP Structured Fund in which your policy is invested. If you have Units in more than one BCP Structured Fund, unit deductions will be split between the funds, generally in proportion to the value each fund contributes to the Policy Unit Account. 15. Commencement of Payment of Retirement Benefits (a) You can decide when you wish your retirement benefits to start, simply by writing to us. This notification can be given at any time prior to the time you wish your benefits to commence but note (b), (c) and (d) below. (b) If you wish for your retirement benefits to start prior to the Maturity Date of the BCP Structured Funds you will lose the value of the units purchased by the 7% investment in the Acorn Life Deposit Fund 4 on the Commencement Date. (c) Retirement benefits cannot start any later than your 75th birthday. Therefore we will pay your retirement benefits from that date even if we have not received your instructions. (d) Retirement benefits cannot start any earlier than your 60th birthday unless: Acorn Life Limited is regulated by the Central Bank of Ireland Page 6 of 8 AC

7 (i) you have become permanently incapable for medical reasons of carrying on your occupation or any occupation of a similar nature for which you are trained. We will need medical evidence to satisfy ourselves that you meet these requirements. (ii) your occupation is one in which a person normally retires before the age of 60. In this case your retirement benefits can commence at an earlier age providing the Revenue Commissioners will allow this. 16. Type of Retirement Benefits (a) Under current Revenue rules, the retirement benefits available can include: (i) a lump sum of an amount of up to one quarter of the value of the Policy Unit Account (subject to Provision 15 (b)) at the date retirement benefits are to commence, and (ii) a pension providing a guaranteed income in any form which you choose and which is permitted by the Revenue Commissioners and/or an investment in an Approved Minimum Retirement Fund (AMRF) or Approved Retirement Fund (ARF) The amount of any pension you receive will be determined by applying the value of the Policy Unit Account (subject to Provision 15 (b)), less any lump sum payable or any investment in an AMRF or ARF, to the relevant annuity rates that are available in the market at the date the pension commences. (b) Under current Revenue requirements, you must inform us of the way in which you wish to take your retirement benefits before you reach age 75. (c) At your request, we will pay the whole of the value of the Policy Unit Account (subject to Provision 15 (b)) to another life assurance company which is authorised to write business in Ireland. This other company will then provide you with your retirement benefits. Once we make such a payment, we will have no further liability under the Policy. (d) You should note that it is the Revenue rules in force at the date of retirement that will determine your retirement options. 17. Death Benefit If you die before the retirement benefits have commenced, we will pay a cash sum equal to the value of the Policy Unit Account. The value will be calculated the next time Unit Bid Prices are set following receipt of written notification. Where a death benefit is payable on your policy before the Maturity Date of the BCP Structured Fund(s), the policy unit value for the BCP Structured Fund(s) that will be used for the purposes of calculating the death benefit payable on your policy will be calculated as follows; If invested in the SDARB 9 Fund or the 90 ARB 5 Fund, the greater of: (i) The Unit Bid Value of the relevant fund calculated the next time Unit Bid Prices are set following the receipt of written notification of death, and (ii) 100 cent If invested in the 120 ARB 3 Fund, the greater of: (i) The Unit Bid Value of the 120 ARB 3 Fund calculated the next time Unit Bid Prices are set following the receipt of written notification of death, and (ii) 95 cent 18. Surrender, Assignment or Commutation You cannot surrender, commute or assign to another person, the benefits under this Policy, except as provided by the Taxes Consolidation Act Acorn Life Limited is regulated by the Central Bank of Ireland Page 7 of 8 AC

8 19. Notices and Claims (a) Any amounts payable under this Policy are payable to you, your Estate or your Administrators from our Head Office. We will need: (i) Completion of the relevant forms, (ii) Satisfactory evidence of the event leading to the claim, (iii) Proof of your date of birth, and (iv) Proof of the entitlement to the benefit of the person claiming. (b) All elections or notifications to be given to us must be sent in writing to our Head Office and will be effective only on receipt. 20. General (a) The Policy, the Application Form, any statements or medical information and any other written or oral statement by you or any person concerned with the Policy and any endorsement attached to the Policy when issued will be the entire contract between you and us. (b) No provision of this Policy may be changed except by an endorsement issued by us and signed by one of our authorised officials. (c) All references in these Provisions to the Taxes Consolidation Act 1997 also apply to any reenactment or modification of that Act. (d) If there is disagreement between you and us over the interpretation of any Provision it shall be referred to an arbitrator who is mutually acceptable to both of us. Should we fail to agree an arbitrator the matter will be referred to the Financial Services Ombudsman, or a person nominated by the Ombudsman, for adjudication. (e) The Policy will be governed by the laws of Ireland. Premiums and benefits will be payable in the currency of Ireland. Acorn Life Limited is regulated by the Central Bank of Ireland Page 8 of 8 AC