Pearl - Restructuring our Business

Transfer of National Provident Life Limited Self Employed Retirement Plans (SERPs) to Pearl Assurance Limited

Any information published on this website before 15 March 2010 may reference Pearl Group as our owner. Any new documentation will reference the new company name. To find out more about Phoenix Group Holdings, visit their website www.thephoenixgroup.com

Note: For up to date information, please see our news article dated 11 February 2010.

Update - 30 January 2010
Revisions to proposals and documents

Following discussions with the Financial Services Authority (FSA) , we have made some changes in relation to the proposals explained below (see 'About the Proposals'). The changes are summarised here.

New documents, including a revised Scheme document, have been produced to reflect these changes. Supplementary reports have also been produced by the Independent Expert, the Actuarial Function Holder and With Profits Actuary of NPLL and the Actuarial Function Holder and With Profits Actuary of Pearl. These reports set out the respective opinions on the likely effect of the Scheme on policyholders, in light of the above changes and of the estimated financial position of NPLL and Pearl at 31 December 2009. The supplementary reports should be read alongside the original reports.

Click here for full details of all the new documents available.

Update - 11 January 2010
Revised date for Court hearing (5 February 2010)

The Court hearing to consider the proposals (explained below) has been rescheduled from 20 January and will now take place on 5 February 2010.

The proposed transfer of certain policies requires the approval of the Courts in Jersey and Guernsey. Click here for the dates and times of the Jersey and Guernsey Court hearings.

About the proposals

We are proposing to make some changes to our business (referred to as ‘the Scheme’) which will involve transferring National Provident Life Limited (NPLL) With-Profits Self Employed Retirement Plans (SERPs) to Pearl Assurance Limited (Pearl). Pearl and NPLL are members of the Phoenix group of companies. In connection with the Scheme, NPLL is also seeking to obtain the approval of the High Court to some changes to the NPLL Demutualisation Scheme.

If approved, the Scheme will enhance security for NPLL policyholders and, combined with the changes to the NPLL Demutualisation Scheme, allow us to improve the flexibility we have in managing our investments, while ensuring all policyholder guarantees remain secure. It will also ensure we can continue to treat all our customers fairly, with full regard to current market conditions.

There will be no impact on existing Pearl policyholders as a result of the Scheme or the proposed changes to the Demutualisation Scheme, and NPLL policyholders transferring to Pearl will not be entitled to a share of the Pearl Estate.

The proposed changes:

Need the approval of the High Court, which will only approve the changes if it is satisfied that they are fair to both NPLL and Pearl policyholders.
Involve safeguards such as the appointment of an Independent Expert to consider the likely effect of the changes on policyholders.

If the High Court approves the Scheme and the changes to the Demutualisation Scheme, we expect the changes to take effect on 15 February 2010. The High Court hearing will take place on 5 February 2010 at The Royal Courts of Justice, The Strand, London WC2A 2LL. After the Court hearing, we will put a note on this website to confirm the High Court’s decision.

UK Timetable of Events

29 October 2009	Initial (Directions) Hearing at the High Court to give us the go-ahead to contact policyholders about the proposals
6 to 25 November 2009	Letters and documents sent out to NPLL policyholders, interested parties and IFAs, to inform them about the proposals
From 25 November 2009	Legal notice of proposed changes published in the press
5 February 2010	Final High Court Hearing to approve the proposals
15 February 2010	Date on which the policies transfer under the Scheme and the changes to the Demutualisation Scheme are expected to take effect

More detailed information on the Scheme is set out in the documents below. To download a document, click on the document title.

Note: You need Adobe Acrobat Reader to view pdf files. You can obtain Adobe Acrobat Reader free from here.

If you would like this information in large print, in Braille or on cassette or CD, please call our Scheme Helpline on 0845 602 9296.

	Scheme Guide - Restructuring Our Business (pdf file, size: 717kb)

	Restructuring Our Business - Your Questions Answered (pdf file, size: 155kb)

	Full Scheme document - revised February 2010 (pdf file, size: 151kb)

	Full Scheme Document (February 2010), showing changes compared to original Scheme document (October 2009) (pdf file, size: 195kb)

	Full report of the Independent Expert (Mr Michael Arnold, Milliman Consultants and Actuaries) (pdf file, size: 310kb)

	Supplementary report of the Independent Expert (Mr Michael Arnold, Milliman Consultants and Actuaries) - January 2010 (pdf file, size: 126kb)

	UK Press Notice (pdf file, size: 15kb)

Technical information
For further technical information relating to the Scheme, click here.

Changes to Demutualisation Scheme
Alongside the Scheme, NPLL has also applied to the High Court to amend the terms of the ‘Demutualisation Scheme’. Click here for more information.

Jersey and Guernsey Schemes
The proposed transfer of certain policies requires the approval of the Courts in Jersey and Guernsey. Click here for more information.

For more information about the Scheme and the proposed changes to the NPLL Demutualisation Scheme , please contact us on our Scheme Helpline 0845 602 9296.

Please note that this Helpline is for enquiries about the Scheme and the proposed changes to the NPLL Demutualisation Scheme only. If you have any general enquiries about your policy(ies), please contact us on the normal customer number which you will find on previous letters from Pearl.