Personal Pension Plan Terms and Conditions

Definitions

Throughout the Plan there are words and phrases that have special meanings and are shown in italics.

"Fund" means each separately identifiable account maintained by us.

"Fund Switch" means the cancellation of units in one Fund and their allocation instead to an alternative Fund or Funds. The Unit account value on the effective day of the fund switch will be the same before and after the fund switch.

"Intended Retirement Date" means the date specified in the Schedule.

"Plan" means the Forester Life Personal Pension Plan that you have applied for and which is evidenced by this document and the Schedule.

"Rules" means the Integrated Model Rules (IMR2003SHP) for Personal Pension Schemes as amended or re-enacted from time to time.

"Schedule" means the personal information relating to the Plan.

"Stakeholder Pension Scheme" means a scheme that meets the requirements set out in the Stakeholder Pensions Regulations.

"Stakeholder Pension Regulations" means the Stakeholder Pension Schemes Regulations 2000 as amended or re-enacted from time to time.

"Start Date" means the date specified in the Schedule.

"Unit Account" on a given date means the units of the Funds that remain allocated to the Plan at the end of the previous day. Any units cancelled before that time for any reason described in this document do not form part of the Unit account.

"Unit Account Value" effective on a given date means the sum of the units of each Fund of the Unit account on that date multiplied by the respective unit price effective on that date.

"We" and "Us" mean Forester Life Limited. "Our" has a corresponding meaning.

"You" means the Planholder. "Your" has a corresponding meaning.

Scheme Registration

  The Forester Life Personal Pension Plan is established under Deed Poll.  Your Plan is subject to the terms of the Deed Poll and the Rules and is issued on the basis that The Forester Life Personal Pension Plan is and remains recognised by HM Revenue & Customs as a registered pension scheme under Part 4 of the Finance Act 2004.

  Nothing in this document or in the Schedule may be taken to modify or override the Rules.

  The benefits and options described in this document correspond with your rights under the arrangement to which your Plan relates. They are subject to the limits and other provisions contained in the Rules.

Contributions

  You may invest regular monthly and/or single contributions to your Plan up to the maximum limits allowed by the Rules. The minimum contribution is £20. Contributions must be in the currency of England.

  Single contributions can be made by cheque or direct credit. Monthly contributions can be made by direct debit or standing order and are due on the Start date and monthly thereafter until the due date immediately preceding the date from which your pension becomes payable.

Optional Changes to Monthly Contributions

  You may increase or decrease your monthly contributions at any time subject to a minimum increase or decrease of £5. Monthly contributions may not be reduced below the minimum of £20. Increases are subject to the maximum allowed under the Rules.

  You may stop your monthly contributions at any time. If monthly contributions have stopped they may be restarted at any time subject to the limits allowed by the Rules and to any conditions or restrictions we may apply.

Automatic Increases on Monthly Contributions

  Your monthly contribution will increase automatically on each anniversary of the Start date. The rate of each Automatic Increase in monthly contributions will be equal to the proportion by which the Retail Prices Index for the month six months before the month in which the anniversary falls exceeds the Index for the month eighteen months before the month in which the anniversary falls.

  The rate of the increase will be applied to the amount of your monthly contribution, payable on the due date immediately preceding the anniversary, allowing for any contribution changes attributable to Optional Changes. If the increase in the Index for a year is negative, no Automatic Increase will be made on the respective anniversary date and your monthly contribution will remain unchanged. If the Retail Prices Index is replaced or discontinued, we will decide which other suitable Index we should use for calculating Automatic Increases. Automatic Increases will be reduced or cancelled if the requirements of the Rules prevent an Automatic Increase from being made in full.

  Automatic Increases will be cancelled on all future anniversaries of the Start Date if you request them to be cancelled, subject to 14 days’ written notice. If Automatic Increases have previously been cancelled you may request their reinstatement at any time. The first Automatic Increase after reinstatement will be made on the following anniversary of the Start Date, subject to 14 days’ written notice. The reinstatement will not take account of any Automatic Increases that would have been made previously but for their earlier cancellation.

Investment of Contributions

  Contributions will be invested in the Fund(s) selected for your Plan. The investment objectives of the Fund(s) are set out in our Personal Pension Plan Brochure and

Key Features. Subject to meeting the conditions for a Stakeholder Pension Scheme, we have discretion as to how the assets of each Fund are invested. Any income arising from the assets of a Fund will be added to the Fund.

  Each Fund is divided into units of equal value. We will increase or reduce the number of units into which a Fund is divided at our discretion, in which case we will transfer in to or out of the Fund an amount of money so that the value of each unit is unaffected.

  We will value each Fund each business day based on the closing prices of the assets for the previous business day, or such other time as we may decide. We will calculate the value of the assets in each Fund on a fair and reasonable basis and check that the investment limits for each Fund are in accordance with the Stakeholder Pension Regulations.

  We will calculate the value of a unit of each Fund at a valuation by dividing the total value of the Fund calculated at that day’s valuation by the total number of units of the Fund existing at that time. We will then set a price for a unit of the Fund for the purpose of allocating units to plans and computing the benefits under Plans that are linked to the Fund. It will be equal to the value of a unit of the Fund rounded to the nearest one-tenth of a penny. Unit prices set at a valuation will be effective from the following day.

  We may open new Funds from time to time or close or combine existing Funds if we think this is appropriate. Where we open new Funds, and subject to any conditions or restrictions we may apply, you may request that we redirect future contributions and/or Fund Switch existing units, using the unit prices effective on the later of the date you select and the day after we receive your written instructions. Where we close or combine Funds we will redirect future contributions and/or Fund Switch existing units, as we decide are appropriate, using the unit prices on the effective date.

Allocation of Units to Your Plan

  On each monthly due date, we will allocate to the Plan units of the Fund(s) using the unit price or prices effective on that date. The total value of the units we allocate at that price will be equal to the monthly contribution due.

  If a monthly contribution is paid after its due date then we reserve the right to allocate units of each Fund selected at the unit price effective on the day after we receive the monthly contribution rather than at the unit price effective on the due date. If we have allocated units in respect of a monthly contribution that is not paid, those units will be cancelled.

  For each single contribution received, we will allocate units to your Plan using the price effective on the later of the day we receive the payment and the Start Date. For each transfer payment received we will allocate units to your Plan using the price effective on the later of the day after we receive the payment and the Start Date. The total value of the units we allocate at those prices will be equal to the payment received.

  The number of units of a Fund allocated in respect of each payment, and each Fund Switch, will be rounded down to the next lower 1/100th of a unit.

  If the effective date for any unit cancellations under the Plan is the same day as the effective date for any unit allocations, the allocations will take place first.

Lifestyling

  We will maintain a set of lifestyling rules in order to progressively reduce the investment volatility of your Plan as you approach your Intended Retirement Date. Unless you provide us with written instruction to opt out of lifestyling, lifestyling will commence from the date five years before your Intended Retirement Date and continue until the maturity date.

  The lifestyling rules set out the criteria to be used for determining which Funds contributions should be allocated to, and which Funds should have units switched. A Fund Switch will be carried out using the unit prices effective on the day(s) stated in the lifestyling rules.

  We may amend the lifestyling Rules from time to time.

Fees and Charges

  The charges that we will levy are set out in our Personal Pension Plan Brochure and

Key Features and include management and administration fees. In addition we will make a deduction from each Fund before the Fund is valued, to cover the costs of taxation, dealing charges and any expenses incurred in complying with our legal requirements.

Annual Statements

  We will prepare and send to you, at least annually, a statement including valuation of your Plan and the amount of all regular and lump sum contributions made since the previous statement date.

Transfers

  On receipt of your written instructions before your pension becomes payable we will transfer the Unit Account Value of your Plan with all rights and obligations to another registered pension scheme as allowed by the Rules. No contributions will be payable on and after the date on which your request becomes effective.  We do not make any charge for the transfer.

  Before the transfer can take place we will require written authority from the scheme administrator of the receiving scheme and the return of this document, the Schedule and any endorsements issued in connection with your Plan. We will issue you with a Statement of your Plan at the date of transfer. Transfer of the Unit Account Value will release us from all of our obligations under the Plan.

  You may transfer to us the amount of another registered pension scheme as allowed by the Rules, which we will manage under these Terms and Conditions. The transfer must be made in a manner acceptable to us.

Retirement Benefits

  Your pension will normally become payable on your Intended Retirement Date. However, on your written request, your pension may become payable from a date other than your Intended Retirement Date.  This request will be put into effect on the later of the date you select and the day after we receive your request. Your pension may not become payable before or after the dates permitted by the Rules.

  We will calculate your pension under the Plan based on the Unit Account Value at your retirement date and the form of pension to be provided. Your pension under the Plan will normally be payable yearly in advance in equal amounts throughout your lifetime with the final payment being the last one that falls due before your death. However on receipt of your written instructions before your pension becomes payable, you may choose a pension in any other form permitted by the Rules, subject to our agreement.

  On receipt of your written instructions before your pension becomes payable, we will pay to you a portion of the Unit Account Value as a cash lump sum. This amount will be calculated in accordance with the Rules. The balance of your Unit Account Value will be applied to purchase a pension as described above.

  Before we make payment of any pension, we will require you to return this document, the Schedule and any endorsements issued in connection with the Plan.  We will also require proof of your age, sex and identity and those of any other person for whom a pension may prospectively be payable. Before we make payment of any pension due after your death, we may require proof of entitlement satisfactory to us. We may at any time require evidence as to the continued existence of any person entitled to receive a pension under the Plan as a condition of continuing to make payment of that pension.

  In the event that your date of birth or sex, or those of any person who becomes entitled to receive a pension under the Plan, is incorrectly stated to us at any time, the benefits will be adjusted at our discretion.

Death Benefit Before Retirement

  In the event of your death before your pension becomes payable we will pay the Unit Account Value effective on the day after we receive notice, satisfactory to us, of that event. Payment of this benefit will be in accordance with the Rules.

  Before we make payment, we will require the return of this document, the Schedule and any endorsements issued in connection with the Plan. We will also require proof to our satisfaction of your age, sex, identity and death. Payment of the Unit Account Value will release us from all of our obligations under the Plan.

Open Market Option

  On receipt of your written instructions before your pension becomes payable, we will pay the Unit Account Value effective on the later of the date you select and the day after we receive your request, less any portion payable in the form of a cash sum, as a contribution to another Insurer (as defined in The Rules) to provide pension benefits in substitution of those which we could provide. Payment of the Unit Account Value to the other Insurer will release us from all of our obligations under the Plan.

  Before we make payment, we will require you to return this document, the Schedule and any endorsements issued in connection with the Plan.  We will also require proof to our satisfaction of your age, sex and identity.

Commutation and Assignment

  No benefits under this Plan shall be capable, in whole or in part, of surrender, commutation or assignment unless in accordance with The Rules.

Termination

  If the registration of The Forester Life Personal Pension Plan ceases or is withdrawn we will cancel your Plan and, in accordance with the Rules, we will transfer the Unit Account Value to another Stakeholder Pension Scheme to secure your pension rights.  This will release us from all of our obligations under the Plan.

  We will not accept any further contributions under the Plan if we cease to be satisfied that you remain eligible to pay contributions under the Rules.  If this happens contributions will stop. The effective date of the cessation of contributions will be taken to be the due date of the first contribution we do not accept.

  If we find that contributions to the Plan have exceeded the limits contained in the Rules, the excess will be refunded to you subject to any tax charge we are required to remit to the HM Revenue & Customs.  Any units previously allocated to the Plan and attributable to the excess contributions will be cancelled.

Cancellation Rights

  Your Plan Documents are issued together with a Notice of your right to cancel. You have 30 days from receipt of this Notice in which you can change your mind about taking out your Plan and have your contributions returned.

  If you wish to cancel you should complete and return this Notice to Foresters House, Cromwell Avenue, Bromley, BR2 9BF. The amount returned to you may be lower if the value of units bought on your behalf has fallen.

Disputes

  We take the concerns of our Planholders very seriously. If at anytime you wish to make a complaint, please write to the Customer Relations Officer at Foresters, Foresters House, Cromwell Avenue, Bromley, Kent, BR2 9BF.

  In the unlikely event that your complaint cannot be resolved to your satisfaction, you can write to the Financial Ombudsman Service (FOS), South Quay Plaza, 183 Marsh Wall, London, E14 9SR (telephone 0845 080 1800).

  The existence of the FOS or this complaints procedure does not prejudice your right to take legal action.

Data Protection

  We will record the personal information contained in your application on computer and use it to assess your application and to administer your policy. The information may be used for fraud prevention or money laundering prevention.

  We may share your information with organisations who are our business partners. We, or they, may contact you by mail, telephone, SMS, fax or e-mail to let you know about any goods, services or promotions, which may be of interest to you. If you do not wish to receive such information please write to our Data Protection Officer, Foresters House, Cromwell Avenue, Bromley BR2 9BF.

  By applying for this Plan you consent to our processing your sensitive personal data, such as health data, for the above purposes. You have a right to ask for a copy of your information (for which we may make a small charge) and to correct any inaccuracies. When you give us personal information about another person we will assume that they have appointed you to act for them and have consented to the processing of their personal data, including sensitive personal data.

General

  This document and the Schedule contain all the Terms and Conditions of the Plan. We will not be liable for any condition, claim, statement, warranty or representation, whether expressed or implied, and whether collateral to this agreement or not, which differs from these Terms and Conditions.

  No term or condition in this document or the Schedule can be modified or waived (unless this document expressly provides that it can be) except by an endorsement issued by us from our registered office and signed by one of our authorised officials.

  We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities under these Terms and Conditions is competent to carry out those functions and responsibilities.

  Any requests made in connection with these Terms and Conditions must be made in writing and delivered to us at our registered office at Foresters House, Cromwell Avenue, Bromley BR2 9BF. We will use certain procedures and forms when any change to your Plan or any payment is to be made. We will only make changes when all normal procedures have been complied with.

  We will retain all the charges and deductions described in this document for our own use and benefit.

  Your Account complies with HM Revenue & Customs requirements for a Stakeholder Pension Scheme. You authorise us to provide HM Revenue & Customs with relevant information about your Plan and its investments.

  We are authorised and regulated by the Financial Services Authority.

  We will send any notices or other correspondence to the address that you have given to us in your application form, or to a new permanent residential address provided you have advised us of it in writing.

  We will update our literature from time to time.

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