Equitable have announced further changes to maturity and surrender adjustments with effect from 1 July 2002.

The maturity adjustment is now a 10% reduction to indicative policy values (previously 4%). However, the guaranteed value is still payable if higher, and this will now be the case for the bulk of occupational scheme members. The surrender penalty is increased to 20% from 14%. The guaranteed value does not apply in surrender cases. The change is attributed to falling markets and the need to make additional, unspecified, provisions in relation to expenses. The full announcement is at: http://www.equitable.co.uk/et/market.nsf/web+pages/cipr020701