# Retirement Bond



## Tall Chapy (31 Jan 2003)

I have a single premium Personal Retirement Bond. 
Eagle Star ESI-Tran Personal Retirement Bond 

- Can you tell me if there are any annual charges with this type of Bond ( I believe there should not be !!)
- Am I entitled to an annual statement
At the start up I was informed that I was entitled to an annual statement.
I have just noticed that at the start I had 571 units in the fund  now I only have 565 ??I know the unit price can rise or fall, but there should be no change in the amount units that I have.
I assume it just sits there & rises or falls
Can any bright sparks shine a light on this ??

:hat 

Thanks in advance


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## US (31 Jan 2003)

There will certainly be an annual charge.  You think they're going to manage the fund for nothing?

I am puzzled by the fall in units.  Possibly the annual charge is paid by the cancellation of units?


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## Liam D Ferguson (31 Jan 2003)

Annual management charge for this product is 0.75% for Eagle Star-managed funds, and 1.25% for Threadneedle Investment or Deutsche Asset Management Funds.  If the sales-person is receiving "trailer commission" (an ongoing commission from your bond), this may account for the reduction in units.  If your bond was issued post commission disclosure, check your quotations and documents as you'll see there if this applies.  If not, ask the salesperson.


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## Larry (31 Jan 2003)

I didn't think there aws disclosure on this type of product? :\


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## Liam D Ferguson (31 Jan 2003)

As the ultimate policyholder is an individual rather than a corporate entity, I think disclosure rules _do_ apply to Personal Retirement Bonds.  But I'm open to correction on this.


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## d53 (31 Jan 2003)

*Retirement bond disclosure*

Although the policyholder is an individual, the purchaser is the trustees of the original scheme, who are a corporate entity for these purposes.  There is therefore no obligation for initial disclosure.

As far as I know, there is no legal obligation for the insurance company to provide annual statements.  But if they said they would, there is an obligation of some sort.

d


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## Liam D Ferguson (1 Feb 2003)

*Re: Retirement bond disclosure*

Well there you go.  I told you I was open to correction on that.     I trust that all the ethical advisors on this board would disclose anyway, irrespective of their obligations...


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## Tall Chapy (1 Feb 2003)

Thanks to all that replied.
Thanks for your views.
A little more, info (Didn't want to overload you the 1st time  :d )
The bond was part of a redundancy package, special terms were negotiated.Company closed down.

The Policy states that charges can be levied, (Deducted from fund or reduced units)
But I have a document stating that 
" The full total current value of your Plan benefits would be invested with Eagle Star, with no commission to Irish pensions Trust or any other agency" 
Does mean, Irish Pension Trust or others did not charge me for setting up the retirement bond & but they excluded saying that there will be charges levied by Eagle Star for managing the bond.
There was also no policy fee. 

Needless to say your comments are always appreciated.


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## Liam D Ferguson (1 Feb 2003)

Hmmm...sounds like Irish Pensions Trust set up the bonds without entry charge or commission as there were presumably a group of employees in the same predicament as yourself.  But Eagle Star will always have an ongoing management charge.  

What do Marsh say?  (Current name for Irish Pensions Trust).


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## Tall Chapy (10 Jul 2003)

*I'm back..*

Hi Liam,
How do I contact Mercer.
Irish Pension Trust set this up

Can anybody explain this actuarial stuff & the need for complicated ‘initial and accumulator units’, initial allocations’, policy fees.

Full details are suppose to be on the original policy document.Regular Management charge I can understand (0.75%)Additional management charges to recoup initial expenses & charges.

d53/Liam
"Although the policyholder is an individual, the purchaser is the trustees of the original scheme, who are a corporate entity for these purposes. There is therefore no obligation for initial disclosure"
Can you explain this. Does it mean that they do/did not have to disclose what their initial charges were.

Needless to say your comments are appreciated again.


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## ClubMan (10 Jul 2003)

*Re: I'm back..*

*How do I contact Mercer.*

There are some contact details for Mercer here in case that's any use?


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