With effect from 19 March 2020 Irish Life has introduced a six-month notice period for all switches, withdrawals or transfers out of our property funds or funds with significant property investment including:
- Exempt property fund
- Irish property fund
- UK property fund
- Pension property fund
- Property Portfolio Fund
- Canada Life Property
- Setanta Property
- Balanced Fund
- Balanced Investment Fund
- High Income Fund
- Income Plus Fund
- Income Investment Fund
This means that any requests to cash in (partially or fully), or switch investments from these funds will be processed using the fund price at the end of the six-month notice period after the request and not the fund price on the date of the request to switch or withdraw.
The six-month notice period does not apply to death claims, or to customers taking retirement benefits from a pension plan at normal retirement age or later. These are the only exceptions to the notice period.
Why are Irish Life introducing a six-month notice period?
Over the past 12 months our property funds have seen more clients withdraw or switch money out than invest in the property funds. In recent weeks, continued economic uncertainty arising from the Covid-19 virus has further increased the level of withdrawals from the property funds. In addition, conditions in the global economy has created market uncertainly around property valuations.
Under these circumstances we need to ensure that the interests of long-term investors in the property funds are protected. As a result, we have introduced a six-month delay (notice period) in withdrawals or switching from our property funds, with effect from 19 March 2020.
We have previously highlighted the possibility of this happening in your product booklet and your plan terms and conditions.
What does this mean?
This means that any requests to cash in (partially or fully), or switch investments from these funds will be processed using the fund price at the end of the six-month notice period after the request and not the fund price on the date of the request to switch or withdraw.
The six-month notice period does not apply to death claims, or to customers taking retirement benefits from a pension plan at normal retirement age or later. These are the only exceptions to the notice period.
I am about to retire - what are the implications for claiming my pension plan benefits
The six-month period does not apply to pension fund benefits claimed at your normal retirement age as noted on your plan. If you decide to defer taking benefits on your plan beyond your normal retirement age (for example you continue to work and do not need to draw your pension) the six-month period will not apply. The notice period will apply to early retirement claims.
What are the implications for death claims?
The six-month period does not apply to death claims. The claim will be processed in the normal way and paid in accordance with our standard procedures.
I take a regular income from my fund – is this affected?
There will be no delay to payments due for existing regular income payments. Payments will continue as normal. However it will not be possible to either commence a new regular income payment or increase an existing income payment.
Can Irish Life alter the notice period?
The notice period is a rolling six-month notice which begins when we get your request. We reserve the right to alter the six-month notice period in the future, however this will not impact on any instruction received when this six-month notice period is in place.
The length of any notice period in place in the future may vary from the current six-months.
The notice period will be removed from the fund when conditions allow.
Do I need to do anything?
No, customers do not need to do anything.
Has this ever happened before?
Yes. In the early 1990’s, in 2001 and in 2007 the property market went through uncertain times and a similar approach was adopted by us and other companies.
Do you have any more questions?
We understand everyone’s situation is different and would encourage you to talk to your financial adviser with any questions you may have.
If you don’t have contact details for your financial adviser please contact us on 01 704 1857 or email us at propertyqueries@irishlife.ie and we will put you in touch with the person you should speak to.