Deferred Charges
If there are ever insufficient funds in your Control Account, or within Scottish Widows insured funds (where we can automatically sell units), to cover charges due from your Retirement Account, a Deferred Charge will be created. Where a Deferred charge applies, each day it cannot be collected from the Control Account, or by selling units from Scottish Widows insured funds, we will increase it by a percentage of the Deferred Charge.
The rate of increase for Deferred Charges is currently 6.25% each year. For more information of Deferred Charges, please refer to your policy terms and conditions.