-
Key Features
- Children's Savings Plan
- Aims, Commitment & Risks
- Questions and Answers
- Other Information
-
Online Application
-
-
Application Forms
- Childrens' Application Form
-
Personal Illustrations
- Personal Illustration
-
Additional Information
- How We Manage the With-Profit Fund
- Bobby Bear Promotion
- Contact us for further information
Questions and Answers
What is the metfriendly Children's Savings Plan?
It is a tax-efficient plan for regular monthly saving, written in the name of the child, designed as a way for an adult (the "sponsor") to save for the benefit of a child.
The plan is always set to run to the plan anniversary preceding the child's 25th birthday, but penalty-free surrenders are available on the child's 18th and 21st birthday, as long as the plan has been in force for at least 10 years at that time. See ' Can the child leave their money with you at the end of the plan?
Who can take out a Children's Savings Plan?
The sponsor must be a UK resident aged 18 or over who works or has worked in the Police Service - or is the partner or close relative of such a person. If this doesn't apply to you, you can still invest in a Children's Savings Plan with us if the child is closely related to someone who works, or has worked, for the police service. The child need not be resident in the UK but needs to be under 15 at outset.
We also have a Tax-Exempt plan for adults.
Who can pay into a Children's Savings Plan?
It is not possible for several people to pay into the same Children's Plan. However, if the original sponsor is unable to continue the payments for any reason, we would always encourage another person to continue payments (perhaps another relative or even the child if they are 18 or over) rather than let the plan cease and pay out a surrender value. See 'Who can cash in the plan'.
Can I save on behalf of more than one child?
Yes, you can invest in separate plans for as many children as you like.
How flexible is it?
Because of the tax advantages, once the plan has started you cannot change the amount you pay. However, you can start another plan later provided the total premiums being paid for that child do not exceed £25 per month.
Can the child leave their money with you at the
end of the plan?
The plan must pay out at maturity (the anniversary before the child's 25th
birthday) and cannot be left to grow, although the child will have the option of
reinvesting the proceeds in one of
metfriendly's lump sum investment
products.
Can the plan be cashed in before its due to mature?
Plans can be cashed in for a surrender value. A plan can only be cashed in
completely - we will not permit part surrenders.
Once you have been paying premiums for 5 years the surrender value will
usually exceed what you have paid in - but it could be less in the early years.
The surrender value reflects our investment return over the period of the
savings.
There is the option to mature the plan penalty-free on the child's 18th or 21st
birthday, provided the plan has been running for 10 years. The Sum Assured
and annual bonuses will reflect the actual period for which premiums have
been paid. The final bonus is at the rate applicable to maturing policies at the
previous policy anniversary.
There may be a tax liability if the plan is cashed in early.
See 'What about Tax'.
Who can cash in the plan?
If the child is under 16, the sponsor can request the plan be cashed in, but
once the child is 16 or over only the child can make such a request.
We will always make payments by cheque payable to the child, who will
therefore need a bank account in their own name.
How does the Children's Savings Plan work?
- You invest a regular monthly premium (maximum £25) with
metfriendly for the child's benefit.
The child may take over paying premiums at age 18.
- Each premium is treated as a "gift"
to the child for legal and tax purposes.
- These are life assurance plans and they have a death benefit, the Sum
Assured. However, under age 10, the death benefit is limited to a
return of premiums.
See What happens if the child dies?
- The Sum Assured is based on the premiums you pay and the term -
which goes through to the policy anniversary before the child's 25th
birthday.
- There are options to cash in early. See ' Can the plan be cashed in before its due to mature?'.
- Your money is invested in our with-profits fund.
- At the end of each calendar year, we add a bonus to the Sum
Assured and send you a bonus notice.
- Once added, that bonus is a permanent addition to the child's
investment with us.
- Bonuses are compounded, so in subsequent years the child
earns bonuses on the bonuses.
- The Sum Assured and bonuses are payable at maturity (or on
the child's earlier death after their 10th birthday).
- We also normally add a final bonus when the benefit is paid.
Where is the premium invested?
The premiums are invested in the metfriendly with-profits fund which is
made up of equities, government bonds, commercial property, corporate
bonds and cash. The approximate "mix" on
the 31 December 2009 is listed below. For more information on how the with-profits fund
works, please refer to the "How we manage the
with-profits fund".
- Equities 37%
- Government Bonds 30%
- Commercial Property 10%
- Corporate Bonds 15%
- Cash 8%
How are bonuses determined?
Bonuses are decided by the metfriendly Board acting on the advice of the with-profits
actuary. A key factor in determining bonuses is the investment return in
recent years.
What happens if the stockmarket falls?
The with-profits fund is invested in a mix of equities,
commercial property, UK government bonds, corporate
bonds and cash (see list above), and by spreading
the fund between the various investments, metfriendly
is not dependent on one market. For instance, if the
value of the stockmarket were to go down but other
investments go up, then the effect would be that one
counteracts the other.
How will I know how my plan is doing?
We will send you a bonus notice every year showing you the annual bonuses
that have been earned; any final bonus (payable on encashment) will not be
shown.
How do I apply for a Children's Savings Plan?
Please make sure you read this document
(Key Features and guide to our with-profits
fund) - and fill in an
application form for each child. Send it to us with
your payment instructions, and a copy of
the child's Birth Certificate.
Serving officers or staff in the Metropolitan
and officers in the City of London Police
Services can authorise us to take monthly
premiums from their salary.
If you are retired, or a relative, or simply wish to pay by direct debit, please
ask for a direct debit form (unless you already pay us this way). If you are
not already making payments to the Society, please provide us with a form of ID, and a recent
utility bill as proof of your address.
If you prefer, visit our website www.mpfs.org.apply and apply online.
Alternatively, you can call us and complete a telephone application.
What might the child get?
An example - What the child might get after 24 years for a regular monthly premium of £25:
- If investments grew at 4.0% a year - they would get back £9,980
- If investments grew at 6.0% a year - they would get back £13,000
- If investments grew at 8.0% a year - they would get back £17,100
The following examples show what you might get back. They assume that investments will grow at 6.0% a year.
The early years
At the end
of year
Total premium
paid in to date
Effect of
Deductions to date
What the child
might get
1 £300 £34 £275
2 £600 £62 £575
3 £900 £84 £900
4 £1,200 £152 £1,200
5 £1,500 £201 £1,540
Warning - if they cash in during the early years, the child could get less than you paid in.
The later years
At the end
of year
Total premium
paid in to date
Effect of
Deductions to date
What the child
might get
10 £3,000 £551 £3,520
15 £4,500 £1,130 £6,060
17 £5,100 £1,290 £7,430
20 £6,000 £1,830 £9,530
24 £7,200 £2,690 £13,000
What are the charges?
- The deductions include the cost of expenses, charges, any
surrender penalties and other adjustments.
- The last line in the table shows that over a 24 year period the
effect of the total deductions could amount to £2,690.
- This would have the same effect as bringing down the
investment growth from 6.0% a year to 4.7%.
What if I change my mind?
On starting a plan, we will send you a certificate of membership on behalf of
the child and a cancellation notice. If you change your mind, you can return
the notice within 30 days for a full refund.
Are there limits on premiums?
Each child is limited to £25 per month in these plans, and that includes Tax-
Exempt plans with other Friendly Societies. This limit applies to the child,
not the payer (who can therefore also have a Tax-Exempt plans as an adult
in their own name - see our Tax Exempt Savings Plan for details).
Can I choose how long to save for?
No; the child has to be under age 15 at outset, and the term will be set so
that the plan matures before age 25. However, the plan can be cashed in
early see 'Can the plan be cashed in before it is due to mature?'.
What happens if I (the premium payer) die?
The plan can continue if a replacement sponsor can be found
to continue the regular payments. Another relative, or even the child (if
over 18) could volunteer; however if no one is prepared to pay the remaining
premiums, then the policy will cease and a surrender value will be paid to
the child.
See 'Can the plan be cashed in before it is due to mature?'.
What happens if the child dies?
The plan will immediately cease and Sum Assured and bonuses to date will
be paid to the child's legal personal representatives (usually the parents).
However, if the child was under 10, the death benefit is limited to
the amount of the total premiums paid.
What about tax?
There is no liability for income or capital gains tax on the payout at the end
of the plan, nor on any payment if the plan has been running for at least 10
years (or 3/4 of its original term if less).
However, if it is cashed-in earlier, income tax may be payable on the amount
by which the cash-in value exceeds the total premiums paid. Tax would be
payable at the child's highest rate of income tax - and if the child does not
have sufficient income to pay tax, then no tax is payable.
How much will it cost for advice?
- metfriendly does not make any form of commission or
incentive payments.
- The cost of providing verbal or written information about this
plan is included in the metfriendly overall expenses.
Is it suitable for us?
If you are unsure as to the suitability of this products, and wish to
obtain personal advice, you should contact an independent financial
adviser.
How do I contact you?
Metropolitan Police Friendly Society Limited,
Berwick House,
8-10 Knoll Rise,
Orpington,
Kent,
BR6 0EL,
Phone: 01689 891454
Fax: 01689 891455
Metphone 28192
Email: enquiries@mpfs.org.uk
Web: www.mpfs.org.uk.
The plan must pay out at maturity (the anniversary before the child's 25th birthday) and cannot be left to grow, although the child will have the option of reinvesting the proceeds in one of metfriendly's lump sum investment products.
Can the plan be cashed in before its due to mature?
Plans can be cashed in for a surrender value. A plan can only be cashed in
completely - we will not permit part surrenders.
Once you have been paying premiums for 5 years the surrender value will
usually exceed what you have paid in - but it could be less in the early years.
The surrender value reflects our investment return over the period of the
savings.
There is the option to mature the plan penalty-free on the child's 18th or 21st
birthday, provided the plan has been running for 10 years. The Sum Assured
and annual bonuses will reflect the actual period for which premiums have
been paid. The final bonus is at the rate applicable to maturing policies at the
previous policy anniversary.
There may be a tax liability if the plan is cashed in early.
See 'What about Tax'.
Who can cash in the plan?
If the child is under 16, the sponsor can request the plan be cashed in, but
once the child is 16 or over only the child can make such a request.
We will always make payments by cheque payable to the child, who will
therefore need a bank account in their own name.
How does the Children's Savings Plan work?
- You invest a regular monthly premium (maximum £25) with
metfriendly for the child's benefit.
The child may take over paying premiums at age 18.
- Each premium is treated as a "gift"
to the child for legal and tax purposes.
- These are life assurance plans and they have a death benefit, the Sum
Assured. However, under age 10, the death benefit is limited to a
return of premiums.
See What happens if the child dies?
- The Sum Assured is based on the premiums you pay and the term -
which goes through to the policy anniversary before the child's 25th
birthday.
- There are options to cash in early. See ' Can the plan be cashed in before its due to mature?'.
- Your money is invested in our with-profits fund.
- At the end of each calendar year, we add a bonus to the Sum
Assured and send you a bonus notice.
- Once added, that bonus is a permanent addition to the child's
investment with us.
- Bonuses are compounded, so in subsequent years the child
earns bonuses on the bonuses.
- The Sum Assured and bonuses are payable at maturity (or on
the child's earlier death after their 10th birthday).
- We also normally add a final bonus when the benefit is paid.
Where is the premium invested?
The premiums are invested in the metfriendly with-profits fund which is
made up of equities, government bonds, commercial property, corporate
bonds and cash. The approximate "mix" on
the 31 December 2009 is listed below. For more information on how the with-profits fund
works, please refer to the "How we manage the
with-profits fund".
- Equities 37%
- Government Bonds 30%
- Commercial Property 10%
- Corporate Bonds 15%
- Cash 8%
How are bonuses determined?
Bonuses are decided by the metfriendly Board acting on the advice of the with-profits
actuary. A key factor in determining bonuses is the investment return in
recent years.
What happens if the stockmarket falls?
The with-profits fund is invested in a mix of equities,
commercial property, UK government bonds, corporate
bonds and cash (see list above), and by spreading
the fund between the various investments, metfriendly
is not dependent on one market. For instance, if the
value of the stockmarket were to go down but other
investments go up, then the effect would be that one
counteracts the other.
How will I know how my plan is doing?
We will send you a bonus notice every year showing you the annual bonuses
that have been earned; any final bonus (payable on encashment) will not be
shown.
How do I apply for a Children's Savings Plan?
Please make sure you read this document
(Key Features and guide to our with-profits
fund) - and fill in an
application form for each child. Send it to us with
your payment instructions, and a copy of
the child's Birth Certificate.
Serving officers or staff in the Metropolitan
and officers in the City of London Police
Services can authorise us to take monthly
premiums from their salary.
If you are retired, or a relative, or simply wish to pay by direct debit, please
ask for a direct debit form (unless you already pay us this way). If you are
not already making payments to the Society, please provide us with a form of ID, and a recent
utility bill as proof of your address.
If you prefer, visit our website www.mpfs.org.apply and apply online.
Alternatively, you can call us and complete a telephone application.
What might the child get?
An example - What the child might get after 24 years for a regular monthly premium of £25:
- If investments grew at 4.0% a year - they would get back £9,980
- If investments grew at 6.0% a year - they would get back £13,000
- If investments grew at 8.0% a year - they would get back £17,100
The following examples show what you might get back. They assume that investments will grow at 6.0% a year.
The early years
At the end
of year
Total premium
paid in to date
Effect of
Deductions to date
What the child
might get
1 £300 £34 £275
2 £600 £62 £575
3 £900 £84 £900
4 £1,200 £152 £1,200
5 £1,500 £201 £1,540
Warning - if they cash in during the early years, the child could get less than you paid in.
The later years
At the end
of year
Total premium
paid in to date
Effect of
Deductions to date
What the child
might get
10 £3,000 £551 £3,520
15 £4,500 £1,130 £6,060
17 £5,100 £1,290 £7,430
20 £6,000 £1,830 £9,530
24 £7,200 £2,690 £13,000
What are the charges?
- The deductions include the cost of expenses, charges, any
surrender penalties and other adjustments.
- The last line in the table shows that over a 24 year period the
effect of the total deductions could amount to £2,690.
- This would have the same effect as bringing down the
investment growth from 6.0% a year to 4.7%.
What if I change my mind?
On starting a plan, we will send you a certificate of membership on behalf of
the child and a cancellation notice. If you change your mind, you can return
the notice within 30 days for a full refund.
Are there limits on premiums?
Each child is limited to £25 per month in these plans, and that includes Tax-
Exempt plans with other Friendly Societies. This limit applies to the child,
not the payer (who can therefore also have a Tax-Exempt plans as an adult
in their own name - see our Tax Exempt Savings Plan for details).
Can I choose how long to save for?
No; the child has to be under age 15 at outset, and the term will be set so
that the plan matures before age 25. However, the plan can be cashed in
early see 'Can the plan be cashed in before it is due to mature?'.
What happens if I (the premium payer) die?
The plan can continue if a replacement sponsor can be found
to continue the regular payments. Another relative, or even the child (if
over 18) could volunteer; however if no one is prepared to pay the remaining
premiums, then the policy will cease and a surrender value will be paid to
the child.
See 'Can the plan be cashed in before it is due to mature?'.
What happens if the child dies?
The plan will immediately cease and Sum Assured and bonuses to date will
be paid to the child's legal personal representatives (usually the parents).
However, if the child was under 10, the death benefit is limited to
the amount of the total premiums paid.
What about tax?
There is no liability for income or capital gains tax on the payout at the end
of the plan, nor on any payment if the plan has been running for at least 10
years (or 3/4 of its original term if less).
However, if it is cashed-in earlier, income tax may be payable on the amount
by which the cash-in value exceeds the total premiums paid. Tax would be
payable at the child's highest rate of income tax - and if the child does not
have sufficient income to pay tax, then no tax is payable.
How much will it cost for advice?
- metfriendly does not make any form of commission or
incentive payments.
- The cost of providing verbal or written information about this
plan is included in the metfriendly overall expenses.
Is it suitable for us?
If you are unsure as to the suitability of this products, and wish to
obtain personal advice, you should contact an independent financial
adviser.
How do I contact you?
Metropolitan Police Friendly Society Limited,
Berwick House,
8-10 Knoll Rise,
Orpington,
Kent,
BR6 0EL,
Phone: 01689 891454
Fax: 01689 891455
Metphone 28192
Email: enquiries@mpfs.org.uk
Web: www.mpfs.org.uk.
Plans can be cashed in for a surrender value. A plan can only be cashed in completely - we will not permit part surrenders.
Once you have been paying premiums for 5 years the surrender value will usually exceed what you have paid in - but it could be less in the early years. The surrender value reflects our investment return over the period of the savings.
There is the option to mature the plan penalty-free on the child's 18th or 21st birthday, provided the plan has been running for 10 years. The Sum Assured and annual bonuses will reflect the actual period for which premiums have been paid. The final bonus is at the rate applicable to maturing policies at the previous policy anniversary.
There may be a tax liability if the plan is cashed in early. See 'What about Tax'.
Who can cash in the plan?
If the child is under 16, the sponsor can request the plan be cashed in, but
once the child is 16 or over only the child can make such a request.
We will always make payments by cheque payable to the child, who will
therefore need a bank account in their own name.
How does the Children's Savings Plan work?
- You invest a regular monthly premium (maximum £25) with
metfriendly for the child's benefit.
The child may take over paying premiums at age 18.
- Each premium is treated as a "gift"
to the child for legal and tax purposes.
- These are life assurance plans and they have a death benefit, the Sum
Assured. However, under age 10, the death benefit is limited to a
return of premiums.
See What happens if the child dies?
- The Sum Assured is based on the premiums you pay and the term -
which goes through to the policy anniversary before the child's 25th
birthday.
- There are options to cash in early. See ' Can the plan be cashed in before its due to mature?'.
- Your money is invested in our with-profits fund.
- At the end of each calendar year, we add a bonus to the Sum
Assured and send you a bonus notice.
- Once added, that bonus is a permanent addition to the child's
investment with us.
- Bonuses are compounded, so in subsequent years the child
earns bonuses on the bonuses.
- The Sum Assured and bonuses are payable at maturity (or on
the child's earlier death after their 10th birthday).
- We also normally add a final bonus when the benefit is paid.
Where is the premium invested?
The premiums are invested in the metfriendly with-profits fund which is
made up of equities, government bonds, commercial property, corporate
bonds and cash. The approximate "mix" on
the 31 December 2009 is listed below. For more information on how the with-profits fund
works, please refer to the "How we manage the
with-profits fund".
- Equities 37%
- Government Bonds 30%
- Commercial Property 10%
- Corporate Bonds 15%
- Cash 8%
How are bonuses determined?
Bonuses are decided by the metfriendly Board acting on the advice of the with-profits
actuary. A key factor in determining bonuses is the investment return in
recent years.
What happens if the stockmarket falls?
The with-profits fund is invested in a mix of equities,
commercial property, UK government bonds, corporate
bonds and cash (see list above), and by spreading
the fund between the various investments, metfriendly
is not dependent on one market. For instance, if the
value of the stockmarket were to go down but other
investments go up, then the effect would be that one
counteracts the other.
How will I know how my plan is doing?
We will send you a bonus notice every year showing you the annual bonuses
that have been earned; any final bonus (payable on encashment) will not be
shown.
How do I apply for a Children's Savings Plan?
Please make sure you read this document
(Key Features and guide to our with-profits
fund) - and fill in an
application form for each child. Send it to us with
your payment instructions, and a copy of
the child's Birth Certificate.
Serving officers or staff in the Metropolitan
and officers in the City of London Police
Services can authorise us to take monthly
premiums from their salary.
If you are retired, or a relative, or simply wish to pay by direct debit, please
ask for a direct debit form (unless you already pay us this way). If you are
not already making payments to the Society, please provide us with a form of ID, and a recent
utility bill as proof of your address.
If you prefer, visit our website www.mpfs.org.apply and apply online.
Alternatively, you can call us and complete a telephone application.
What might the child get?
An example - What the child might get after 24 years for a regular monthly premium of £25:
- If investments grew at 4.0% a year - they would get back £9,980
- If investments grew at 6.0% a year - they would get back £13,000
- If investments grew at 8.0% a year - they would get back £17,100
The following examples show what you might get back. They assume that investments will grow at 6.0% a year.
The early years
At the end
of year
Total premium
paid in to date
Effect of
Deductions to date
What the child
might get
1 £300 £34 £275
2 £600 £62 £575
3 £900 £84 £900
4 £1,200 £152 £1,200
5 £1,500 £201 £1,540
Warning - if they cash in during the early years, the child could get less than you paid in.
The later years
At the end
of year
Total premium
paid in to date
Effect of
Deductions to date
What the child
might get
10 £3,000 £551 £3,520
15 £4,500 £1,130 £6,060
17 £5,100 £1,290 £7,430
20 £6,000 £1,830 £9,530
24 £7,200 £2,690 £13,000
What are the charges?
- The deductions include the cost of expenses, charges, any
surrender penalties and other adjustments.
- The last line in the table shows that over a 24 year period the
effect of the total deductions could amount to £2,690.
- This would have the same effect as bringing down the
investment growth from 6.0% a year to 4.7%.
What if I change my mind?
On starting a plan, we will send you a certificate of membership on behalf of
the child and a cancellation notice. If you change your mind, you can return
the notice within 30 days for a full refund.
Are there limits on premiums?
Each child is limited to £25 per month in these plans, and that includes Tax-
Exempt plans with other Friendly Societies. This limit applies to the child,
not the payer (who can therefore also have a Tax-Exempt plans as an adult
in their own name - see our Tax Exempt Savings Plan for details).
Can I choose how long to save for?
No; the child has to be under age 15 at outset, and the term will be set so
that the plan matures before age 25. However, the plan can be cashed in
early see 'Can the plan be cashed in before it is due to mature?'.
What happens if I (the premium payer) die?
The plan can continue if a replacement sponsor can be found
to continue the regular payments. Another relative, or even the child (if
over 18) could volunteer; however if no one is prepared to pay the remaining
premiums, then the policy will cease and a surrender value will be paid to
the child.
See 'Can the plan be cashed in before it is due to mature?'.
What happens if the child dies?
The plan will immediately cease and Sum Assured and bonuses to date will
be paid to the child's legal personal representatives (usually the parents).
However, if the child was under 10, the death benefit is limited to
the amount of the total premiums paid.
What about tax?
There is no liability for income or capital gains tax on the payout at the end
of the plan, nor on any payment if the plan has been running for at least 10
years (or 3/4 of its original term if less).
However, if it is cashed-in earlier, income tax may be payable on the amount
by which the cash-in value exceeds the total premiums paid. Tax would be
payable at the child's highest rate of income tax - and if the child does not
have sufficient income to pay tax, then no tax is payable.
How much will it cost for advice?
- metfriendly does not make any form of commission or
incentive payments.
- The cost of providing verbal or written information about this
plan is included in the metfriendly overall expenses.
Is it suitable for us?
If you are unsure as to the suitability of this products, and wish to
obtain personal advice, you should contact an independent financial
adviser.
How do I contact you?
Metropolitan Police Friendly Society Limited,
Berwick House,
8-10 Knoll Rise,
Orpington,
Kent,
BR6 0EL,
Phone: 01689 891454
Fax: 01689 891455
Metphone 28192
Email: enquiries@mpfs.org.uk
Web: www.mpfs.org.uk.
If the child is under 16, the sponsor can request the plan be cashed in, but once the child is 16 or over only the child can make such a request.
We will always make payments by cheque payable to the child, who will therefore need a bank account in their own name.
How does the Children's Savings Plan work?
- You invest a regular monthly premium (maximum £25) with metfriendly for the child's benefit. The child may take over paying premiums at age 18.
- Each premium is treated as a "gift" to the child for legal and tax purposes.
- These are life assurance plans and they have a death benefit, the Sum Assured. However, under age 10, the death benefit is limited to a return of premiums. See What happens if the child dies?
- The Sum Assured is based on the premiums you pay and the term - which goes through to the policy anniversary before the child's 25th birthday.
- There are options to cash in early. See ' Can the plan be cashed in before its due to mature?'.
- Your money is invested in our with-profits fund.
- At the end of each calendar year, we add a bonus to the Sum Assured and send you a bonus notice.
- Once added, that bonus is a permanent addition to the child's investment with us.
- Bonuses are compounded, so in subsequent years the child earns bonuses on the bonuses.
- The Sum Assured and bonuses are payable at maturity (or on the child's earlier death after their 10th birthday).
- We also normally add a final bonus when the benefit is paid.
Where is the premium invested?
The premiums are invested in the metfriendly with-profits fund which is made up of equities, government bonds, commercial property, corporate bonds and cash. The approximate "mix" on the 31 December 2009 is listed below. For more information on how the with-profits fund works, please refer to the "How we manage the with-profits fund".
- Equities 37%
- Government Bonds 30%
- Commercial Property 10%
- Corporate Bonds 15%
- Cash 8%
How are bonuses determined?
Bonuses are decided by the metfriendly Board acting on the advice of the with-profits actuary. A key factor in determining bonuses is the investment return in recent years.
What happens if the stockmarket falls?
The with-profits fund is invested in a mix of equities, commercial property, UK government bonds, corporate bonds and cash (see list above), and by spreading the fund between the various investments, metfriendly is not dependent on one market. For instance, if the value of the stockmarket were to go down but other investments go up, then the effect would be that one counteracts the other.
How will I know how my plan is doing?
We will send you a bonus notice every year showing you the annual bonuses that have been earned; any final bonus (payable on encashment) will not be shown.
How do I apply for a Children's Savings Plan?
Please make sure you read this document (Key Features and guide to our with-profits fund) - and fill in an application form for each child. Send it to us with your payment instructions, and a copy of the child's Birth Certificate.
Serving officers or staff in the Metropolitan and officers in the City of London Police Services can authorise us to take monthly premiums from their salary.
If you are retired, or a relative, or simply wish to pay by direct debit, please ask for a direct debit form (unless you already pay us this way). If you are not already making payments to the Society, please provide us with a form of ID, and a recent utility bill as proof of your address.
If you prefer, visit our website www.mpfs.org.apply and apply online. Alternatively, you can call us and complete a telephone application.
What might the child get?
An example - What the child might get after 24 years for a regular monthly premium of £25:
- If investments grew at 4.0% a year - they would get back £9,980
- If investments grew at 6.0% a year - they would get back £13,000
- If investments grew at 8.0% a year - they would get back £17,100
The following examples show what you might get back. They assume that investments will grow at 6.0% a year.
The early years
| At the end of year |
Total premium paid in to date |
Effect of Deductions to date |
What the child might get |
|---|---|---|---|
| 1 | £300 | £34 | £275 |
| 2 | £600 | £62 | £575 |
| 3 | £900 | £84 | £900 |
| 4 | £1,200 | £152 | £1,200 |
| 5 | £1,500 | £201 | £1,540 |
Warning - if they cash in during the early years, the child could get less than you paid in.
The later years
| At the end of year |
Total premium paid in to date |
Effect of Deductions to date |
What the child might get |
|---|---|---|---|
| 10 | £3,000 | £551 | £3,520 |
| 15 | £4,500 | £1,130 | £6,060 |
| 17 | £5,100 | £1,290 | £7,430 |
| 20 | £6,000 | £1,830 | £9,530 |
| 24 | £7,200 | £2,690 | £13,000 |
What are the charges?
- The deductions include the cost of expenses, charges, any surrender penalties and other adjustments.
- The last line in the table shows that over a 24 year period the effect of the total deductions could amount to £2,690.
- This would have the same effect as bringing down the investment growth from 6.0% a year to 4.7%.
What if I change my mind?
On starting a plan, we will send you a certificate of membership on behalf of the child and a cancellation notice. If you change your mind, you can return the notice within 30 days for a full refund.
Are there limits on premiums?
Each child is limited to £25 per month in these plans, and that includes Tax- Exempt plans with other Friendly Societies. This limit applies to the child, not the payer (who can therefore also have a Tax-Exempt plans as an adult in their own name - see our Tax Exempt Savings Plan for details).
Can I choose how long to save for?
No; the child has to be under age 15 at outset, and the term will be set so that the plan matures before age 25. However, the plan can be cashed in early see 'Can the plan be cashed in before it is due to mature?'.
What happens if I (the premium payer) die?
The plan can continue if a replacement sponsor can be found to continue the regular payments. Another relative, or even the child (if over 18) could volunteer; however if no one is prepared to pay the remaining premiums, then the policy will cease and a surrender value will be paid to the child. See 'Can the plan be cashed in before it is due to mature?'.
What happens if the child dies?
The plan will immediately cease and Sum Assured and bonuses to date will
be paid to the child's legal personal representatives (usually the parents).
However, if the child was under 10, the death benefit is limited to
the amount of the total premiums paid.
What about tax?
There is no liability for income or capital gains tax on the payout at the end
of the plan, nor on any payment if the plan has been running for at least 10
years (or 3/4 of its original term if less).
However, if it is cashed-in earlier, income tax may be payable on the amount
by which the cash-in value exceeds the total premiums paid. Tax would be
payable at the child's highest rate of income tax - and if the child does not
have sufficient income to pay tax, then no tax is payable.
How much will it cost for advice?
- metfriendly does not make any form of commission or
incentive payments.
- The cost of providing verbal or written information about this
plan is included in the metfriendly overall expenses.
Is it suitable for us?
If you are unsure as to the suitability of this products, and wish to
obtain personal advice, you should contact an independent financial
adviser.
How do I contact you?
Metropolitan Police Friendly Society Limited,
Berwick House,
8-10 Knoll Rise,
Orpington,
Kent,
BR6 0EL,
Phone: 01689 891454
Fax: 01689 891455
Metphone 28192
Email: enquiries@mpfs.org.uk
Web: www.mpfs.org.uk.
The plan will immediately cease and Sum Assured and bonuses to date will be paid to the child's legal personal representatives (usually the parents). However, if the child was under 10, the death benefit is limited to the amount of the total premiums paid.
What about tax?
There is no liability for income or capital gains tax on the payout at the end
of the plan, nor on any payment if the plan has been running for at least 10
years (or 3/4 of its original term if less).
However, if it is cashed-in earlier, income tax may be payable on the amount
by which the cash-in value exceeds the total premiums paid. Tax would be
payable at the child's highest rate of income tax - and if the child does not
have sufficient income to pay tax, then no tax is payable.
How much will it cost for advice?
- metfriendly does not make any form of commission or
incentive payments.
- The cost of providing verbal or written information about this
plan is included in the metfriendly overall expenses.
Is it suitable for us?
If you are unsure as to the suitability of this products, and wish to
obtain personal advice, you should contact an independent financial
adviser.
How do I contact you?
Metropolitan Police Friendly Society Limited,
Berwick House,
8-10 Knoll Rise,
Orpington,
Kent,
BR6 0EL,
Phone: 01689 891454
Fax: 01689 891455
Metphone 28192
Email: enquiries@mpfs.org.uk
Web: www.mpfs.org.uk.
There is no liability for income or capital gains tax on the payout at the end of the plan, nor on any payment if the plan has been running for at least 10 years (or 3/4 of its original term if less).
However, if it is cashed-in earlier, income tax may be payable on the amount by which the cash-in value exceeds the total premiums paid. Tax would be payable at the child's highest rate of income tax - and if the child does not have sufficient income to pay tax, then no tax is payable.
How much will it cost for advice?
- metfriendly does not make any form of commission or incentive payments.
- The cost of providing verbal or written information about this plan is included in the metfriendly overall expenses.
Is it suitable for us?
If you are unsure as to the suitability of this products, and wish to obtain personal advice, you should contact an independent financial adviser.
How do I contact you?
Metropolitan Police Friendly Society Limited,
Berwick House,
8-10 Knoll Rise,
Orpington,
Kent,
BR6 0EL,
Phone: 01689 891454
Fax: 01689 891455
Metphone 28192
Email: enquiries@mpfs.org.uk
Web: www.mpfs.org.uk.