Flex Plan Bonus: Overview

Bonus rates are announced in December.

Over a period of time, these bonus rates will normally reflect the return on the assets underlying policyholder funds, currently short term fixed interest bonds (largely 1 to 3 year).

The bonus rates are determined by reference to available surplus which arises primarily from the investment return earned.

Bonuses once declared are guaranteed in full.

Bonus rates are not expected, necessarily, to remain at constant levels from year to year. The above information is not provided as a guarantee of future bonus rates or future investment strategy but to provide a current indication of future bonus rates. The rate of return on short-term fixed interest securities should not be regarded as the upper or lower limit of future bonus rates.

Bonus rates are ratified each year following the results of the annual actuarial valuation. These rates also apply to the Save Invest Plan.