CIS Personal Pension - Royal London


Reminder of important facts


This guide applies to all variations of The

CIS Personal Pension product (sold prior

to April 2001), including:

– Voluntary contributions

– State Earnings Related Pension

Scheme (SERPS)/State 2nd Pension

(S2P) contributions

– Free-standing AVC contributions.

What is a Personal Pension Policy?

Your pension policy is a tax-efficient way of

building up a pension pot to provide you

with pension benefits in your retirement.

The options available to you are included in

the Taking your pension benefits section.

Do I get tax relief on my pension


To encourage people to save for their

retirement, the Government gives basic

rate income tax relief on your pension


Basic rate taxpayers

For basic rate taxpayers this means that if,

for example, you pay £80 a month into

your Personal Pension policy, we would

collect an additional payment of £20 from

the Government and pay this into your

policy. You would then have £100 a month

being invested in your policy.

Higher and additional rate taxpayers

Higher rate and additional rate taxpayers

also qualify for basic rate income tax relief.

If you are a higher rate or additional rate

taxpayer, and you pay the same £80 a

month into your Personal Pension policy,

we would collect the same additional

payment of £20 from the Government and

pay this into your policy. You may then be

able to claim further tax relief through

your Self Assessment tax return if you

complete one, or by asking H.M. Revenue

and Customs to adjust your PAYE (Pay

As You Earn) tax code if you don’t.

Where does Royal London invest my


We invest your contributions, together

with the contributions of other with-profit

policyholders, into the RLCIS OB & IB

Fund, referred to here as the with-profits

fund. The fund is managed by an

experienced fund manager and aims to

achieve steady growth by investing in a

wide range of assets such as shares,

property and government bonds.

The value of the investments in the

with-profits fund will go up and down,

reflecting daily price changes in the

underlying assets. However, we ‘smooth’

our investment returns to protect against

extreme changes in investment markets.

By smoothing we mean that instead of

sharing out the actual profits or losses

made in the with-profits fund each year,

we reduce the impact of variations in these

from one period to another by spreading

the profits and losses from one period to

the next.

We also aim to pass on a share of the

with-profits fund’s investment returns to

you. We do this by adding annual and final

bonuses to your policy. However, please

note that the addition of bonuses depends

on the fund’s performance and there is no

guarantee that we will add future bonuses

to your policy. The bonuses also allow for

deductions to cover the costs of managing

your policy.


We explain how we manage our

with-profits fund in the Principles and

Practices of Financial Management

(PPFM) of the RLCIS OB & IB Fund

document available on our website or on

request. In the event of conflict between

this guide and the PPFM, the PPFM shall


What are the Fund Guarantees?

Your policy will provide you with a

Guaranteed Cash Sum (GCS) at your

Chosen Retirement Date* as long as you

pay all your contributions up to that date.

Your GCS and any bonuses, once added,

are guaranteed to be paid on your Chosen

Retirement Date, even if the investment

markets fall. This provides the pension pot

from which you can take your pension

benefits at retirement.

What is a Guaranteed Annuity Rate?

For any pension contributions in respect

of proposal forms signed before 1st March

1999, we guarantee a certain level of

regular income for you if you retire at your

Chosen Retirement Date and you use your

pension benefits to buy a regular income

with us. This is known as a Guaranteed

Annuity Rate.

Our Guaranteed Annuity Rates could be

higher than the annuity rates offered by

other pension providers, meaning that you

could get a higher regular income by

staying with us.

The policy document we sent to you when

you took out your Personal Pension policy

will tell you if you are entitled to a

Guaranteed Annuity Rate.

When can I take my pension benefits?

Pension benefits can be taken from age 55.

We will write to you in the months

leading up to your Chosen Retirement

Date to inform you of your retirement

options, unless you contact us to request

an earlier retirement date.

Taking your pension benefits

The Government has made a number of

changes to the way in which you can take

your pension benefits. This means that you

now have more choice than ever before in

how you can take the pension pot you

have saved. In summary, these choices are:

Option 1 – Take all your pension pot as a

single lump sum (25% is tax free).

Option 2 – Convert your pension pot into

a guaranteed income for the rest of your

life. This is called an annuity (including

the option to take up to 25% as tax free


Option 3 – Take some of your pension pot

and leave the rest invested for another

time. You can take a series of lump sum

payments or income at different times or a

mix of both (including the option to take

up to 25% as tax free cash).

Option 4 – Postpone taking your pension

pot – you can leave your pension benefits

with us until you are age 75, after which

you will be required to take your pension


You cannot normally take advantage of

these options until you have reached age

55. However, if you are unable to work

because of poor health then you may be

able to take your benefits earlier.


As you approach your Chosen Retirement

Date, we will send you a detailed pack

with all your options and details of what

you need to do.

To help you understand your options and

make the right choices, the Government is

making available a free and impartial

guidance service - Pension Wise. We

strongly recommend that you use this

service to help you understand your

options and make the right decision. You

can access Pension Wise online by visiting

This service will not provide advice or

recommend specific products or providers.

If you feel you need advice, we recommend

you talk to a financial adviser. If you do

not have a financial adviser, you can get

details of local financial advisers by visiting Advisers may charge for

providing such advice and should confirm

any cost to you beforehand.

What happens if I die before I take

my pension benefits?

If you die before you take your pension

benefits, we will return the value of your

pension pot to your beneficiaries.

If you die before the age of 75, it will

normally be paid tax free. If you die after

the age of 75, it will be subject to tax at

45% if it is paid before 6 April 2016.

After this date it will be taxed as income,

i.e. depending on their total taxable income

in a year, your beneficiary may pay income

tax on these payments.

If you purchased separate life cover with

your pension, and this cover is in force

when you die, then we will pay an

additional lump sum benefit.

Previously, there were certain restrictions

applying to Protected Rights benefits,

which meant that a regular income would

automatically have been payable to a

surviving spouse or civil partner, but this is

no longer the case.

You will still be able to choose to have a

regular income payable to a surviving

spouse, civil partner or any other person

who is financially dependent on you,

however if one is not chosen the pension

pot will be paid as a lump sum.

What happens if I am in ill-health?

If you took out the Waiver of

Contribution cover option with your

policy, and are still paying for this cover,

please contact us if you are unable to work

for any significant period due to sickness

or accident. We may be able to pay your

pension contributions for you.

If you are unsure whether you have waiver

of contribution cover please contact us on

0345 605 7777.

If you retire early due to ill health, we may

be able to make special arrangements for

when and how you take your pension


Can I transfer my policy?

You can transfer your policy to another

pension provider at any time before you

take your pension benefits. We will not

charge for doing this

However, if you do transfer your policy,

you will lose any Fund Guarantees and

any Guaranteed Annuity Rate.


We recommend that you speak to a

financial adviser before you transfer your


Can I stop paying my pension


You can stop paying your pension

contributions at any time but this will

reduce the size of your pension pot.

Additional information

This guide is a short reminder of the main

features of your Personal Pension policy

and any important changes that might

affect your policy. You should refer to the

policy document we sent to you when you

took out your policy, together with any

contract endorsements, for more detailed

information. In the event of conflict

between this guide and the policy

document, the policy document will



*Throughout this document, whenever we

refer to ‘Chosen Retirement Date’, this is

the date that you originally stated you

would like to retire and is the date shown

on your annual statement (unless

subsequently changed).


If you would like a copy of this leaflet in large print,

audio or Braille, please call us on 0345 605 7777.

Royal London

Churchgate House, 56 Oxford Street, Manchester, M1 6EU

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority

and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in

England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.

MKT2613_RL 04/2015

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