Reduction in OP Saving-for-retirement charges
(Thomson Reuters ONE) -
Charges for the OP Saving-for-retirement account will go down and the related
pricing structure will change as of 1 October. This change will apply not only
to new agreements but also the existing ones.
According to OP-Pohjola Group's new price recommendation, customers under the OP
Saving-for-retirement scheme will pay only fees equalling those charged to
customers investing directly in mutual funds, deposits, equities and other
securities. OP Saving-for-retirement came onto the market on 1 April 2010 and at
first its pricing was based on an annual management fee which also covered
securities custody fee, for example, accounting for 0.4% of the capital
invested.
Based on the new pricing model, the long-term savings account is no longer
subject to a separate management fee. From 1 October, customers will pay
standard fund subscription, switch and redemption fees. If customers hold shares
or other securities, they will pay a monthly custody fee of 1.5 euros. Customers
entering the OP Saving-for-retirement scheme this year will be entitled to a
12-month custody service free of charge.
Following the price change, OP Saving-for-retirement will be more inexpensive
for all customers regardless of the amount of capital they invest, their
investment style and the level of their investment activity.
- OP-Pohjola Group member banks are owned by their customers and we want to
ensure that we will be able to provide them with absolutely competitive services
for all their needs, explains Senior Vice President Mika Kivimäki.
- According to the OP Investor Barometer published in early summer, Finns think
it is necessary to save money for retirement on a voluntary basis but they do
not regard it as being of interest at the present time. We want to encourage our
customers to save for retirement on a long-term basis and can offer good options
for that, continues Kivimäki.
OP bonus customers can use their OP bonuses earned through banking transactions
to pay fund subscription fees and custody fees. Moreover, investments made
through OP Saving-for-retirement in accounts and mutual funds will generate
bonuses as usual.
The terms and conditions of OP Personal Pension Insurance will not change in
this connection and it will remain within Group member banks' product range
alongside with the OP Saving-for-retirement scheme. Customers can choose one of
them, depending on their needs. Moreover, it is possible to transfer savings
between OP Personal Pension Insurance and OP Saving-for-retirement. In the first
few months after the launch of the OP Saving-for-retirement service, OP-Pohjola
Group's market share of new bound long-term savings accounts has stood at around
25%. The Group's market share of all new saving-for-retirement agreements,
including voluntary personal pension insurance, stands at roughly 35%.
As provided by the Act on bound long-term savings in force since 1 January
2010, bound long-term savings schemes are also covered by the same, familiar tax
treatment as applied to voluntary personal pension insurance. The OP
Saving-for-retirement service is a tax-subsidised saving-for-retirement product
in accordance with the abovementioned Act. Savers can deposit funds into a
specific long-term savings account in such a way that the deposited amounts are
tax-deductible with certain restrictions based on the law. Funds can be
reinvested through this account in equities, mutual funds, deposits and bonds.
During the saving period, customers may change from investment assets to another
without tax consequences. In addition, interest payable on deposits and bonds,
and dividends are exempt from tax during the saving period. Pension savers may
begin to withdraw the funds they have saved as soon as they reach their full
retirement age under Finnish employees pension legislation, which is currently
63 years. Pensions paid are subject to capital gains tax. Saving-for-retirement
will have no effect on the amount or accrual of statutory employee pension.
FOR MORE INFORMATION, PLEASE CONTACT:
Mika Kivimäki, Senior Vice President, OP-Pohjola Group Central Cooperative, tel.
+358 (0)10 25 22735
[HUG#1444479]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Pohjola Pankki Oyj via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 15.09.2010 - 09:00 Uhr
Sprache: Deutsch
News-ID 42520
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"Reduction in OP Saving-for-retirement charges"
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