Hit the sales target or Funeral Directors pay gets cut.
The National Association for Pre-Paid Funeral plans has expressed concern about the new Golden Charter policy of paying inflation increases on funeral plans on a discretionary basis, depending on the willingness and ability of the funeral director to meet sales targets for new Golden Charter plans. From July 2009, unless funeral directors sell as many new Golden Charter plans as they have old plans maturing, the funeral payment on their old plans will be frozen at March 2008 levels.
“Our Executive Committee accept that funeral plan providers may offer bonuses and incentives to encourage sales,” says NAPFP Secretary Nigel Burton, “but the new Golden Charter policy is different, because this discretionary payment replaces the inflation increase on funeral payments for the last year and Mr Auchincloss (Golden Charter National Sales Manager) has indicated that it may do so for next year as well. This means that many funeral directors who sold these plans in the past will not get the full payment for the funeral that they reasonably expected, just because they do not sell enough new Golden Charter plans this year. Our members feel that an important matter of principle is at stake: inflation payments on funeral plans should be universal, not a matter of discretion and not dependent on undertakers meeting sales targets.”
The NAPFP are concerned about the reputation of prepayment plans among undertakers and also with the general public, because if funeral payments fall behind it could affect the service provided and the amount included in the plan for disbursements.
Press release, Funeral Directors Payments Cut.