Member Bonuses
Sharing Success
If you have a With Profits policy other than a Flexible Income Annuity, your MGM Advantage With Profits policy will be invested in either our Conventional or Unitised (Bonus Growth) With Profits Funds. The annual bonus rates for these policies are as follows.
Note that for Conventional With Profits policies each year we normally declare a level of annual bonus in respect of the previous year. So, the 2012 announcement relates to performance in 2011. For Unitised With Profits policies the annual bonuses may be changed at any declaration.
Bonuses for Conventional With Profits policies were announced on 1 April 2012, and for Unitised With Profits policies on 1 February 2012.
Conventional
| With Profits Life policies | With Profits Pension policies |
|---|---|
| Annual bonus in respect of 2011 is 1% of the sum assured. From 1 April 2012, the interim annual bonus rate is 1% of the sum assured. | Annual bonus in respect of 2011 is 0.25% of the guaranteed annuity plus declared bonuses. From 1 April 2012, the interim annual bonus rate is 0% of guaranteed annuity plus declared bonus. |
Unitised (MGM Advantage Bonus Growth Fund)
| Life policies | Pension policies |
|---|---|
| The annual bonus rate is 2% from 1 February 2012. | The annual bonus rate is 2.5% from 1 February 2012. |
If you have a Maturity Plus Plan Option (MPPO) policy, the annual bonus rate is 1.5% from 1st February 2012.
Final Bonus
Conventional With Profits Life Policies
The final bonus for policies vesting on or after 1 April 2012 will depend upon when you started your policy.
Conventional With Profits Pension Policies (excluding Self Employed Retirement Plans)
The final bonus for policies vesting on or after 1 April 2012 will depend upon when you started your policy.
Conventional With Profits Self Employed Retirement Plans
For Self Employed Retirement Plans the final bonus will depend upon the year of commencement of benefit.
Unitised With Profits Life Plans
The final bonus for plans vesting on or after 1 February 2012 depends on the month of investment.
Unitised With Profits Pension Plans
The final bonus for plans vesting on or after 1 February 2012 depends on the month of investment.
Market Value Reductions
Market Value Reductions (MVRs) are currently being applied to a number of Unitised With Profits policies. This would affect the amount you would receive if you decide to cash in your policy before your chosen retirement date for pension policies and before the maturity date of a life policy.
To find out whether a market value reduction or a final (terminal) bonus could apply to your policy, please contact our customer centre.
Flexible Income Annuity
The Flexible Income Annuity Annual Bonus in respect of 2011 is 0.25%. This is applied in April 2012 in the form of additional units to your policy. The effect on your fund will be shown on your annual statement. If your policy started in 2011, you will receive a bonus for the part of the year your policy was in force.
More information about With Profits funds and Flexible Income Annuity funds can be found here.
Useful documents:
MGM Bonus Growth Fund (pdf 38.3KB)
MGM Report and Accounts 2010 (pdf 8.6MB)
Principles and Practices of Financial Management (pdf 137KB)
2010 Directors Annual Report To With Profits Policyholders (pdf 34.7KB)