Standard Life reduces surrender/transfer values for some with-profits plans

The significant investment market falls of the second half of 2008 have unfortunately continued through into 2009 with the UK stock market currently at levels not seen since early 2003.

Our Stakeholder with-profits pension plans, Homeplan with-profits endowments and With Profits Bonds are designed so that surrender values and transfer values automatically change each day in response to fluctuations in asset values. However, the structure of our other with-profits product lines, including many pension and endowment plans mean that surrender values and transfer values change less frequently to reflect recent investment experience.

Today, we have implemented reductions to the surrender/transfer values of these with-profits plans to allow for poor investment returns experienced since the beginning of the year. These changes are consistent with the changes automatically made to the surrender/transfer values of our Stakeholder plans, Homeplans and With Profits Bonds.

Reductions are typically between 5% and 8%, depending on type of plan and the asset mix.

Margaret Flaherty, With-Profits Communications Manager, Standard Life Assurance Limited, said: "These changes have been made to ensure fair treatment for both customers choosing to leave with-profits and those choosing to remain. Today's changes have had no effect on payouts on maturity or at normal retirement age.

"We will continue to monitor changes in the value of assets backing with-profits plans and will make further changes as and when appropriate to reflect future investment performance, positive or negative."