Collective Protest on Bonus Cut

Click here to download the letter and signature form.

1. Please collect the name, NRIC, signature and date of policyholders who wish to join the collective protest.

2. Please mail the letter with the signatures to the following person before 25 May 2008. Your signatures will be lodged with NTUC Income at the annual general meeting to be held on 30 May 2008

Collective protest
Tan Kin Lian
9A Cactus Crescent
Singapore 809744

3. You can collect additional signatures to be sent to the same address after 25 May 2008. They will be used for a subsequent submission to NTUC Income.

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Chairman, board of directors
NTUC Income

Insurance Commissioner
Monetary Authority of Singapore

Collective Protest against Bonus Cut

We have bought many life insurance polices with NTUC Income that are affected by the recent cut in annual bonus. The reduction in bonus is about 45%. We understand that this large cut will apply not just for one year but for every year into the future.

NTUC Income told us that, to compensate for the cut in annual bonus, they will be increasing the terminal bonus (previously called special bonus) payable on surrender, maturity or death.

We do not accept this unilateral change. We do not like the new bonus structure.

When we bought the policies, we were given a benefit illustration showing how the future bonuses would be distributed. While the actual bonuses were not guaranteed, we expect that NTUC Income would honour the underlying promise to distribute the bonuses in the manner that was illustrated.

We prefer to stay with the old bonus structure, as it is more transparent and a higher proportion of the bonus is vested each year.

We do not like the new bonus structure as it can be subject to arbitrary adjustment and the terminal bonus can be withdrawn in the future. We are less confident of getting a higher payout, if the investment yield improves.

We believe that this unilateral change by NTUC Income is to the detriment of the policyholders. It contravenes the "reasonable expectation" of the policyholders.

In some past years, we received a bonus cut (compared to what was illustrated to us when we bought the policy) when the investment yield was low. As NTUC Income had a good investment yield in 2007, we ask that the shortfall in the bonus for the poor years be restored as early as possible, subject to financial solvency.

We ask that NTUC Income should reverse the decision to change the bonus structure and restore the annual bonus to at least the same level as for the previous year. We do not accept a cut in the annual bonus when the investment results justify an increase.

Signatories on the attached pages

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Tan Kin Lian
www.tankinlian.blogspot.com