When your policy was transferred to Scottish Friendly in December 2007 it was placed into a separate sub-fund created just for LANMAS policies. 

This sub-fund has been closed to new policyholders for many years, so no new policies are being opened. As other policyholders have made claims or withdrawn their money, the sub-fund has decreased in size. 

It has now reached the point where it is in the interests of all remaining policyholders for the LANMAS sub-fund to be closed and for your policy to be moved into the Main Fund.

No, we will automatically transfer your policy to the Main Fund on 1 October 2025.  You do not need to take any action.

The LANMAS sub-fund can pay all future claims and would have some assets left over.   We call this extra the sub-fund’s “surplus assets”. We give a fair share of the surplus assets to each with profits policy when you claim or withdraw.

However, regulations require us to set aside some of these surplus assets to ensure we can pay your claim even if things don’t happen as we expect. As the sub-fund gets smaller, the amount we are required to set-aside becomes more challenging to sustain.

The fund has now reached the point where closing it allows us to continue fairly sharing the surplus assets.  If we don't act now, it could lead to an unfair distribution in the future.

From 1 October 2025 your policy will also become eligible to benefit from the ProfitShare distribution which we apply to all eligible policies in the Main Fund.  In 2024 we returned more than £4m to our eligible members (equivalent to an uplift of 2%) through our ProfitShare distribution.

No, the charges you currently pay for your policy will not change as a result of the fund closing. 

In addition, any one-off costs which we incur as a result of closing the sub-fund will be deducted from the surplus assets in the fund.  These costs will not be charged to your policy.

No, the LANMAS sub-fund will cease to exist after 1 October 2025 and your policy will be transferred to the Main Fund. 

We will distribute all the surplus assets to the with-profits policies in the sub-fund as part of transferring them to the Main Fund by increasing the value of your policy. This will be applied by uplifting the final bonus which applies to your policy.

The exact uplift will depend on the actual value of the sub-fund's assets and liabilities on the date we close the sub-fund. We will complete the necessary calculations after the sub-fund closes and publish the final rate of uplift on this website.

We will not issue any further letters but we will update this page when the closure has been completed. 

We have sent a letter to every remaining with-profits policyholder in the LANMAS sub-fund to make them aware of our plan to close the fund.  If you have more than one policy invested in the LANMAS sub-fund there is a chance you could receive more than one letter.

No, your policy details and terms and conditions will remain the same. 

No, your policy number will remain unchanged after the sub-fund closes.

Your policy will remain with-profits and continue to earn future bonuses as currently is the case.

The only difference is that from 1 October 2025 the future bonus rates for your policy will reflect the investment performance of the Scottish Friendly Main Fund. 

Per Question 3, from 1 October 2025 your policy will also become eligible to benefit from the ProfitShare distribution which we apply to all eligible policies in the Main Fund.  In 2024 we returned more than £4m to our eligible members (equivalent to an uplift of 2%) through our ProfitShare distribution.

If you are still paying premiums we will continue to collect these in the same way that we currently do. You should not notice any change.

No, your policy is already administered by Scottish Friendly.  The same team will continue to administer your policy after the sub-fund closes.

When the LANMAS policies were transferred to Scottish Friendly in 2007 it was always expected that the fund would eventually reach this point, and that Scottish Friendly would close it and move your policy to the Main Fund.  

The “Scheme of Transfer” which was sanctioned by the Court in 2007 set out the process which we should follow when closing the sub-fund.  This is explained within the Principles and Practices of Financial Management (PPFM).

As we are following a process approved by the Court we do not require any further approvals.  

The PPFM for Rational Shelley is available here - Principles and Practices of Financial Management (PPFM).