Annuity Plan: Charges

The charges depend on the nature of the annual pension increases selected.

For policies with pension increases fixed at between 0% and 3% there are no specified charges. All charges are included within the premium for the benefits to be paid.

For policies where the annual pension increases depend on a discretionary bonus, the expenses are as follows:

The initial charge is 4% of the single premium plus an allowance for payment expenses in deferment and in payment.

The allowance for expenses while the annuity is in payment depends on the frequency of the annuity payments.

Nordben also reserves the right to make a charge on the Annuity Plan policyholders' funds but this charge has no effect on policies that have fixed annual pension increases. At present, Nordben has determined that, this charge will not exceed a half of one percent per annum. Nordben reserves the right to increase the level of this charge.

.