Charge on policy transfers and surrenders
Charge on policy transfers and surrenders means that customers who decide to terminate or transfer their pension scheme (including in connection with a change of job) must pay a certain percentage of their savings. The charge on policy transfers and surrenders only applies to pension schemes established as Gennemsnitsrente pension products. If you terminate or transfer your Gennemsnitsrente pension scheme, you have to pay a charge on policy transfers and surrenders so that the remaining customers do not have to pay your share of the bill for the loss suffered by the company on customers’ savings.
I would like to transfer my scheme to you – is that a good idea?
If your savings are covered by a charge on policy transfers and surrenders, it is best to leave them until the charge on policy transfers and surrenders is removed again. Until then, you are free to transfer your future contributions.
Your future contributions will in fact also be covered by the charge on policy transfers and surrenders. In popular terms, this means that the DKK 100 you contribute on Monday will, depending on the company, only be worth DKK 85-95 on Tuesday. The joint reserves have been lost and have to be rebuilt. The value of the your savings have been reduced to less than the value of the future payments. Your future contributions will contribute to rebuilding the joint reserves and that limits the ability to provide a high rate of interest on policyholders' savings for the coming years.
Instead, it will be an advantage to leave your current savings until the charge on policy transfers and surrenders has been removed again as you will otherwise lose 5-15 per cent of your savings here and now. We suggest that you complete all the paper work now and then we will transfer the savings as soon as the charge on policy transfers and surrenders is removed.