Your fund is worth £23,000...now that’s a bonus

B.W. writes: In 1986, I was working for the prison service and took out an endowment policy with the Civil Service Benefit Society. Around 2006, the name seemed to change to Engage Mutual and later to One Family. For 11 years I have received no bonuses. Is this correct? YOUR policy is due to mature next March to coincide with your retirement. You have been faithfully paying monthly premiums of £26 for more than 30 years, but have no idea what to expect as a payout.

I asked One Family why no bonuses had been added to your savings policy. Staff explained: ‘No bonuses have been added since 2007 because despite heavy stock market falls in the 2000s, annual bonuses continued to be added to the policy by the Civil Service Benefit Society when stock market conditions were not favourable.’

In other words, it was putting a gloss on its poor investment performance by declaring bonuses that had not really been earned. After it merged with Engage Mutual, the bonuses came to a halt so there would be enough in the kitty to pay out all policyholders as their investments matured.

So far, you have paid in £9,749. The policy guarantees a minimum £12,680 on death or maturity, and bonuses already added amount to £8,022, making your fund worth £20,702.

The good news from One Family is that there will be a terminal bonus on top. It looks as though you will pocket close to £23,000 in all.

If you believe you are the victim of financial wrongdoing, write to Tony Hetherington at Financial Mail, 2 Derry Street, London W8 5TS or email tony.hetherington@mailonsunday.co.uk. Because of the high volume of enquiries, personal replies cannot be given. Please send only copies of original documents, which we regret cannot be returned.