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Standard Life Demutualisation

On 31 May 2006 Standard Life announced that they had received well in excess of the votes necessary to seek approval to demutualise from the Court of Session in Scotland. The proposal has now been approved by the Court and Standard Life floated shares on the London Stock Exchange on 10 July 2006. All those partnership pension account, stakeholder and NICSAVCS members who have a with-profit policy and are eligible for a windfall payment should have received a letter. There are some Questions and Answers below which hopefully will answer any questions you may have on Standard Life’s demutualisation.
For questions not covered please email cspensions.cpg@dfpni.gov.uk
Q 1. I have a NICSAVC with Standard Life am I going to get a windfall payment?
A. This will depend on two things:
  • where your money is invested and
  • the duration of your investment.
NICSAVCS members are eligible for a windfall payment only if
  • they have a with-profit investment with Standard Life and
  • the investment commenced on or before 30 March 2004 and continued to be invested in with profits up until 31 May 2006.
Q 2. How much will I get?
A. If you meet the above criteria you should be entitled to the following:
  • a share of the 185 fixed share allocation which will be divided equally between all eligible NICSAVCS members and
  • a variable share allocation depending on the value and duration of your with-profit investment.
On the instruction of Civil Service Pensions (CSP) the shares will be sold immediately and the proceeds will be added to eligible members’ with-profit funds.
All eligible members should already have received a letter from CSP indicating their policy enhancement. If you think you should have been contacted please email us at cspensions.cpg@dfpni.gov.uk giving your full name and national insurance number and we will investigate.
Q 3. Will eligible members receive the full share value or will Standard Life take commission from the shares?
A. Standard Life have confirmed that they will meet all of the trading costs of selling the shares and will reinvest based on nil commission terms to ensure 100% allocation.
Q 4. How much are the shares worth?
A. On 10th July Standard Life floated shares on the London Stock Exchange. The Offer Price per share was £2.30.
Q 5. When will the money go into my fund?
A. The shares allocated to CSP were sold immediately and Standard Life will pay the money into eligible members’ with-profit funds as soon as practicable.
Q 6. I have been told I will have shares added to my with-profit fund but why can’t I have the cash value instead?
A. The rules of the NICSAVCS only allow cash payments to be made to members in specific circumstances as defined in the scheme rules. Consequently it is not possible for members to receive their windfall payment as cash but instead it will be paid into their with-profit fund.
Q 7. I have a NICSAVC with Standard Life why wasn’t I allowed to vote?
A. The NICSAVCS is a contract between the Northern Ireland Civil Service and Standard Life. The scheme is not set up under trust but CSP act as the manager of the scheme and hold the with-profits policy. It is therefore the CSP who is entitled to the single vote.
Q 8. How did CSP vote?
A. CSP, as manager of the NICSAVCS, did not consider it appropriate to simply abstain from voting and therefore voted to follow Standard Life’s recommendation to support demutualisation. This is in keeping with the stance adopted by the Cabinet Office who, as manager of the Civil Service Additional Voluntary Contribution Scheme in GB, also voted to follow Standard Life’s recommendation to support demutualisation after taking advice from their financial advisers.
Q 9. How many people voted for demutualisation?
A. There were 1,577,788 votes cast and 1,545,314 (98%) voted for and 32,474 (2%) voted against.
Q 10. I have a unit-linked investment with Standard Life will demutualisation affect my investment?
A. No, demutualisation will not affect unit-linked investments.
Q 11. Will I get a new benefit statement once my share allocation has been added to my with-profit policy?
A. Standard Life has just issued 2005/2006 benefit statements and will not be sending out a further benefit statement until next year. CSP has recently written to members informing them of the amount that has been added to their with-profits investment. The benefit enhancement will also be clearly shown on your 2006/2007 Standard Life NICSAVC benefit statement.
Q 12. I have a partnership pension account with Standard Life will I be entitled to a windfall payment?
A. This will depend on two things:
  • where your money is invested and
  • the duration of your investment.
It is only those partnership account holders who have a with-profit investment with Standard Life who are eligible for a windfall payment and only if the investment commenced on or before 30 March 2004 and continued to be invested in with-profits up until 31 May 2006. Standard Life has written to all partnership account holders personally about individual entitlement. If you think you should have been contacted please ring Standard Life on 0845 275 3000.
Q 13. I have a stakeholder pension with Standard Life will I be entitled to a windfall payment?
A. This will depend on two things:
  • where your money is invested and
  • the duration of your investment.
It is only those with a stakeholder pension who have a with-profit investment with Standard Life who are eligible for a windfall payment and only if the investment  commenced on or before 30 March 2004 and continued to be invested in with-profits up until 31 May 2006. Standard Life has written to all Stakeholder members personally about individual entitlement. If you think you should have been contacted please ring Standard Life on 0845 275 3000.
Q 14. I took out a with-profit annuity with Standard Life will I receive anything?
A. Standard Life has already contacted eligible members directly. If you think you should have been contacted please ring Standard Life on 0845 275 3000.
Q 15. I left the Civil Service a few years ago but left my NICSAVC with Standard Life - will I get anything?
A. If you meet the set criteria set out in the answer to Q 1 you should have already received a letter from CSP. If you believe you should have been contacted please email CSP at cspensions.cpg@dfpni.gov.uk or you can write to the address below giving your full name and national insurance number.
Civil Service Pensions
Waterside House
75 Duke Street
Derry/Londonderry
BT47 6FP