Equitable Life payouts to begin in June

Equitable Life payouts to begin in June

Investors who lost money with Equitable Life should finally start receiving payments from the compensation scheme next month.

The £1.5 billion Equitable Life Payment Scheme will contact all eligible policyholders directly and is expected to start paying out at the end of June.

With-profits annuity policyholders will receive full compensation for their losses, while other policyholders will receive a share of the £775 million set aside for them in proportion to the size of their losses.

Mark Hoban, financial secretary to the Treasury, says: ‘This [the payment scheme] is a complex issue, but the scheme has been designed to reflect the principles of fairness, transparency and simplicity. 

‘When payments start in the middle of this year it will be a huge milestone for the policyholders who have waited so many years for the resolution of this matter.’

With-profits annuity holders were particularly vulnerable to Equitable Life closing to new business in 2000 and its subsequent near collapse because they were unable to move their funds elsewhere and were already retired. They are also generally the oldest policyholders to have suffered from the ongoing Equitable Life saga.

National Savings & Investments will make the payments on behalf of the Equitable Life Payment Scheme.

The scheme will prioritise older accumulating with-profits and conventional with-profits policyholders for earlier payment, and also prioritise payments to estates of victims. It will start payments to with-profits annuitants within the first 12 months of the scheme.

The scheme will not prioritise payments on the grounds of hardship.


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Comments

I am severnty years old, and

I am severnty years old, and like many others was in the recification scheme, are we still eligable for payments from the scheme, my pensions dimishes like others every years, it will cease to exist very soon, what then for this old lady, with no money in her pension pot anymore?

How are we able to find out if we are to receive any money from the scheme?

Problem is that I, along with

Problem is that I, along with many other "with profits" polcyholders am not included in the payout. We are totally excluded.
My policy is an endowment supporting a mortgage. 10 or so years ago Equitable told me that it would likely pay out £60k, which was enough. Now I'm likely to get just £20k.
The greedy pensioners who bought into a "too good to be true" deal are the only beneficiaries yet they are the least affected. Affected yes but not bankrupted as a result. I may well be.

So far as I am aware the

So far as I am aware the Coalition has not kept it's word. I took out my policy in 1987 with most money going in in the mid 90's. I lost a guaranteed annuity & considerable sums in so called market value adjusters but because my policy began before 1992 I understand I will not get a penny. Same old politicians!

Can’t be too soon! At least

Can’t be too soon! At least the Coalition has the morals to keep their word, after the last government attempted to evade it's responsibilities for years. It’s just a pity that many of the needy have kicked the bucket. So much for New Labour now with their gold plated pensions! At least you knew where you stood with the previous (old Labour) standard bearers of the Socialist ideals!

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