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Catch up with the latest press releases from LV=

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LV= comments on new regulations for USP transfers and annuity purchases

Press release: 23/12/2010

Ray Chinn, LV= head of pensions, comments: "The clarification published today by the Treasury regarding unsecured pensions (USP) for those customers between 50 and 55 demonstrates a fairer approach which puts the customer first. The government will now permit a person in a USP aged over 50 but not yet 55 to purchase a lifetime annuity or scheme pension without incurring an unauthorised payments charge.

"We had expressed concern that the previous legislation could have trapped some customers in inappropriate drawdown plans, when their circumstances had changed after taking out the original plan. While the announcement in July went some way to help facilitate transfers to other providers, it still did not allow annuity purchases without a tax charge, and so this is welcome clarification.

"It builds on the recent rule changes announced by the government to simplify pension drawdown, enabling consumers to be more flexible with their pension savings. It is good to see the government examining the current pension system and making the necessary changes to create a fairer and more adaptable regime, which focuses strongly on putting customer needs higher up the agenda."


About LV=

LV= is a registered trademark of Liverpool Victoria Friendly Society Limited (LVFS) and a trading style of the Liverpool Victoria group of companies.

LV= employs around 4,000 people, serves over four million customers and members, and manages around £7.9bn (as at 30 September 2010) on their behalf, via LV= Asset Management (LVAM). We are also the UK's largest friendly society and a leading mutual financial services provider.

LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. www.LV.com