Following intense speculation in the financial press, Zurich Financial Services have today announced the sale of Threadneedle Asset Management to American Express for a cash consideration of GBP 340 million. This sale is part of the ongoing efforts of the group to focus on core operations and key geographic areas.

The good news is that Threadneedle, American Express and Zurich have signed terms which guarantee that Threadneedle will continue to be the fund manager for the Zurich group. The sale will have no impact on the relationship between us and Threadneedle, and in fact we anticipate that our arrangements with American Express may produce other benefits going forward.
Do you currently have an UK Pension Plan either "Frozen" or "Live". if so, please read on, as this will be of interest:

Key Features

Its Aim

• To enable you to give up any benefits to which you are entitled under a previous company pension scheme or individual arrangement in exchange for a lump sum to be invested in your own plan, as an alternative to leaving your entitlement in that previous scheme or to transferring the value to the scheme of a new employer.
• To give you the opportunity to improve your potential retirement benefits and the flexibility to decide how you want benefits to be paid.
• To build up a fund to provide you with a pension in your retirement and, if appropriate, a pension for your spouse or dependants.
• To give you the choice of taking a cash lump sum at retirement free of UK tax in exchange for a smaller pension if you prefer.
• To provide benefits for your dependants should you die before retirement.

Your Commitment

• The only payment is the transfer value from your previous scheme or arrangement; no contributions are required directly from you. Once the plan has commenced, you cannot change your mind and have the value of your fund returned to that previous scheme or arrangement.
• Once the transfer value has been paid and the plan commences, you will not have any rights to benefits under your old scheme or arrangement.
• In order to gain the maximum benefit from the plan it should run its full term to selected retirement age.
• You cannot surrender the plan for cash.
• Pension benefits cannot be taken earlier than allowed by the Inland Revenue, normally age 50.

Risk Factors

• The value of your plan is not guaranteed and can go up and down depending on investment performance.
• You may be giving up:
  - A pension that is guaranteed or linked to your earning when you left the company
  - Increase in the value of your pension in the period up to and after retirement
  - Any Guaranteed Minimum Pension rights earned it you were contracted - out of the State Earnings Related Pension Scheme (SERPS) before 6 April 1997.

If this is of interest for you, please click on the above image for more detailed information and read