Basic Saver Plan
Click here to download a PDF of this plan containing all the forms and information required. Simply print off the PDF, fill in the forms and post back to Railway Mutual.
Key facts about our services
IMPORTANT: Please read the Key Facts Carefully
1. The Financial Services Authority (FSA)
The FSA is the independent watchdog that regulates financial services. It requires us to give you this information to decide if our services are right for you.
2. Whose products do we offer?
• We only offer our own products.
3. Which services will we provide you with?
• We will advise and make a recommendation for you after we have assessed your needs.
Or
•You will not receive advice or a recommendation from us. If you ask us to do so the first statement in this section would apply. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.
4. What will you have to pay us for our services?
• We will tell you how we get paid, and the amount, before we carry out any business for you.
5. Who regulates us?
Railway Enginemen's Assurance Society Limited, 727 Washwood Heath Road, Birmingham, West Midlands B8 2LE is authorised and regulated by the Financial Services Authority. Our FSA Register number is 110047.
Our permitted business is advising, arranging and providing life assurance business.
You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234.
6. What to do if you have a complaint
If you wish to register a complaint, please contact us:
In writing:
Write to The Compliance Officer, Railway Enginemen's Assurance Society Limited, 727 Washwood Heath Road, Birmingham, West Midlands B8 2LE
By phone:
Telephone 0121 327 1027
If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.
7. Are we covered by the Financial Services Compensation Scheme (FSCS)?
We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.
Most types of investment business are covered for 100% of the first £30,000 and 90% of the next £20,000 so the maximum compensation is £48,000. Further information about compensation scheme arrangements is available from the FSCS.
Key Facts About the cost of our services
1. The Financial Services Authority (FSA)
The FSA is the independent watchdog that regulates financial services. It requires us to give you this document when advising on some savings and investments. You may use this information to compare value for money, to shop around and to decide which firm to use.
2. Our Services
We offer an initial discussion (without charge) when we will describe our services more fully and explain the payment options. If you decide to go ahead, we will:
• gather and analyse personal information about you, your finances, your needs and objectives;
• recommend and discuss any action we think you should take and, with your agreement, arrange relevant investments for you.
3. What are your payment options?
Not all firms charge for advice in the same way. We will discuss your payment options with you and answer any questions you have.
Paying by commission (or product charges). If you buy a financial product, we will normally receive commission on the sale from the product provider. Although you pay nothing up front, that does not mean our service is free. You still pay us indirectly through product charges. Product charges pay for the product provider’s own costs and any commission. These charges reduce the amount left for investment. If you buy direct, the product charges could be the same as when buying through an adviser, or they could be higher or lower. We will tell you how much the commission will be before you complete an investment, but you may ask for this information earlier.
4. How much might our services cost?
Table 1 shows an example of the amount of commission we could receive (or the equivalent we could earn through product charges) and compares the amount with the market average (see notes 1 & 2 at the end of this section 4).
The amount varies according to: the type of product, the amount you invest, and (sometimes) how long you invest for, or your age when you start the product. We will confirm the actual amount to you before you buy a product.
Table 1 – Commission if you invest monthly
| Products |
Example of
term or age
|
Comparison of costs |
Example Based on £100 per month |
| |
|
Our
maximum
|
Market average |
This shows the maximum costs of our sales and advice for a monthly investment or premium of £100, ignoring any changes in fund value |
| Savings and Investments |
| Endowments |
10 year term |
28.2% of the first 12 month's payments |
40.2% of the first 12 month's payments |
£338.40 initially |
Notes:
a. The market average figures are calculated by the FSA using actual data from a representative sample of regulated firms and are shown in a way that you may compare with our own maximum rates. The market average figures will be updated by the FSA from time to time based on new data.
b. Where a firm sells its own products it must calculate its figures according to FSA guidelines.
5. Further information
If you need any more help or information
• ask your adviser; or
• visit www.fsa.gov.uk/consumer
Key Features of this plan
IMPORTANT: Please make sure you have read and understood the Key Facts above before continuing or applying for this product
Member's Endowment Assurance
It’s aims
1. To provide during the term, a guaranteed amount of insurance cover payable upon death.
2. To provide upon maturity a cash payment consisting of the sum assured plus added bonuses.
3. To achieve savings in a Friendly Society tax-exempt plan, subject to a minimum term of ten years and the individual not having exhausted the tax- exempt entitlement of £5 per week.
Your commitment
1. You agree to pay regular weekly premiums for a specified number of years.
2. If you cash in within the first few years you are unlikely to get back as much as you put in.
Risk Factors
1. The proceeds will depend upon the investment performance.
2. The amount you get back cannot be accurately calculated in advance.
3. Your circumstances may change, forcing you to cash in early.
4. Our deductions may turn out to be higher than expected.
Your personal example:
Policy type: Scale 9 Endowment Assurance Members Policy
Name: Mr Example
Age Next Birthday: 43 years
Contract Term: 10 years
Fixed Term Policy
Sum Assured: £2,400
Tax-Exempt
Weekly Premium: £5
What I might get back after 10 years
•Your premiums will be invested by the Society.
•What you receive will depend on how your investments grow.
•The rates of growth used in this illustration are 4%, 5% and 6% a year.
•The Society cannot guarantee any particular rate of growth
If Investments grew at 4% a year you would receive £2,590
If Investments grew at 5% a year you would receive £2,730
If Investments grew at 6% a year you would receive £2,880
•These are not minimum or maximum amounts; you could receive more or less than this.
•The absolute guarantee is that you will not receive less than £2,400.
Is the Life Cover Guaranteed?
•If you die at any time during the agreed term a minimum sum amounting to at least the sum assured
will be paid.
•This figure could be more due to added bonuses but will never be less.
What are deductions for?
•The deductions include the cost of life cover, commission, expenses, charges, any surrender penalties and other adjustments.
How much would commission be?
•The amount will depend upon the sum assured, The size of the premium and the policy term.
•For arranging and setting up this policy the society could pay commission and provide services
amounting to £72
What happens if I cash-in early?
•These examples show what you might get back. They assume that investments will grow at 5% a year, which is not guaranteed
Warning – the early years
•If you cash-in during the early years you could get back less than you paid in.
| Year |
Total Paid
to Date |
Total Actual
Deductions to Date
|
Effect of
Deductions to Date |
What You Might
Get Back |
| 1 |
£260 |
£136 |
£136 |
£130 |
| 2 |
£520 |
£253 |
£260 |
£286 |
| 3 |
£780 |
£352 |
£372 |
£468 |
| 4 |
£1,040 |
£434 |
£472 |
£676 |
| 5 |
£1,300 |
£404 |
£466 |
£1,000 |
| The Last Five Years |
| 6 |
£1,560 |
£443 |
£528 |
£1,280 |
| 7 |
£1,820 |
£465 |
£576 |
£1,590 |
| 8 |
£2,080 |
£468 |
£609 |
£1,930 |
| 9 |
£2,340 |
£451 |
£623 |
£2,310 |
| 10 |
£2,600 |
£414 |
£616 |
£2,730 |
•To get the full benefit from this policy it is important to continue for the whole period.
What difference will the deductions make?
•The last line in the table shows that, over the full term of the policy, the effect of the total deductions could amount to £616. Leaving out the cost of life cover, this would have the effect of bringing investment growth down from 5% per annum to 1.1% per annum.
What about inflation?
•Do not forget that inflation would reduce the amount you could buy in the future with the amounts shown here.
IMPORTANT INFORMATION
You should read this carefully, it is your right to change your mind.
This notice relates to the contract described in the above KEY FEATURES. You have applied to enter into a life assurance contract with the Railway Enginemen’s Assurance Society Limited. Neither the society nor any of its introducers are authorised to give you advice regarding the suitability of this contract. You have a legal right to consider the matter again & to change your mind if you wish.
Points to consider
Before you decide whether you want to change your mind, please ask yourself:
• Have you received all the information you require in order to understand the investment?
• You will receive with this letter a personalised KEY FEATURES document describing the important features of your investment.
• Are you satisfied that the investment is suitable for your needs?
Do you for example:
• Understand how much you will have to pay, both now & in the future?
• Understand that the full life assurance benefit becomes valid as soon as the first contribution has been received by your society.
• Understand what benefits will be paid under the contract, on your death or before you die, and to what extent these benefits are guaranteed and to what extent they depend on bonuses or the changing value of the assets to which they are linked?
• Understand the charges, expenses & risks which will affect the value of the investment?
• Understand what happens if you stop your contract before it runs its full term?
• If the answer to any of these questions is NO you should consult the general manager at the society.
There is no extension to the cancellation period if you ask for further information or your reply is delayed.
Your right to withdraw from the transaction
If you wish to go ahead with the transaction you should do nothing with the cancellation form supplied. If you wish to withdraw, you should send the cancellation form to the General Manager at the Railway Enginemen’s Assurance Society Limited, 727 Washwood Heath Road, Birmingham B8 2LE. You must post it on or before the 30th day after the day on which you receive this notice.
This notice deals with your statutory right to cancel and does not affect your common law right to withdraw an order, application or proposal before it has been accepted.
Financial consequences of withdrawal
If you withdraw your application, you are entitled to have repaid to you any money you have paid to the society and you will of course have to repay any amounts paid to you under the contract.
Further information
Cancellation Rights – After your proposal is accepted you will receive a notice of your right to cancel. You will then have 30 days in which you can change your mind.
Premiums – Premiums are to be paid by payroll deductions. Missed premiums due to sickness or absence will normaly be collected on your return to work. If any missed premiums are not collected it may mean a reduction in benefits and a lower value at maturity.
Bonuses – Bonuses calculated on the basis of investment performance are adde3d to your policy each year at the discretion of the management committee of the society acting on the advice of the Appointed Actuary. Once a bonus is added it cannot be taken away.
Charges – The charges, expenses and other deductions used is this guide are best estimates based on current experience, they could vary in the future.
Tax – If your policy meets current Friendly Society tax exemption levels, i.e. the term exceeds 10 years and the weekly premium does not exceed £5, the proceeds of your policy will be free of all tax. If the term of your policy is less than 10 years or the premium exceeds £5 per week a ‘chargeable event’ will occur if the proceeds on surrender or maturity exceed the premiums paid.
Cashing-in – You can cash-in (surrender) your policy whenever you like, but you should remember that if you cash-in early you could get back less than you have paid, or nothing at all in the first year.
Law – In legal disputes English law will apply.
Our Friendly Society – The Railway Enginemen’s Assurance Society was founded in 1865 for the benefit of railway employees and their families. Today, membership is still only open to railway employees and provides assurance benefits to over 6,000 policyholders backed by assets of over £22 million. The Society is a member of the Association of Friendly Societies and is incorporated under the Friendly Societies Act 1992.
Queries and Complaints – For further information of if you wish to complain about any aspects of the service you have received please contact the General Manager at the Society. If your complaint is not dealt with to your satisfaction you can then complain to the Financial Ombudsman Service, South Quay Plaza, 183, Marsh Wall, London E14 9SR Telephone:0845 080 1800. Making a complaint will not prejudice your right to take legal proceedings.
Compensation – The Society is a member of the Financial Services compensation scheme. This rescue scheme exists to compensate investors in the case on insolvency. Members are automatically entitled to the protection of the scheme which is administered by the Financial Services Compensation Scheme, 7th Floor, Lloyds Chambers, 1 Portsoken Street, London E1 8BN.
Railway Enginemen’s Assurance Society Limited, 727 Washwood Heath Road, Birmingham B82LE
Telephone: 0121 327 1027 Fax: 0121 328 4743 email: info@railwaymutual.co.uk
Authorised and regulated by the Financial Services Authority – Incorporated under the Friendly Societies Act 1992 |