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.
When will the companies remove the charge on policy transfers and surrenders again?
The charge on policy transfers and surrenders will remain in force for as long as the market value of the assets in the interest rate group to which the scheme belongs (shares, bonds, etc.) is lower than the value of the provisions to cover the customers’ pensions. The major fluctuations seen in share and bond prices in recent years have made it difficult to assess for how long each company has to maintain the charge on policy transfers and surrenders.