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10,000 Pre-1992 annuitants will miss out on Equitable Life compensation

Ten thousand Equitable Life policyholders who annuitised before 1992 will not receive compensation after an amendment to include them in the Government’s compensation package was defeated.

Labour MP Fabian Hamilton said the comprehensive spending review’s announcement of £1.5bn in compensation for victims was “clouded” when he discovered pre-1992 annuitants would not be included.

He said: “I feel strongly that a group of Equitable Life policyholders has been unfairly excluded from the compensation scheme the Government has put in place.”
Hamilton tabled an amendment that was defeated in the Commons by 301 votes to 76.

The Government announced in the spending review it would pay compensation to Equitable Life policyholders who may not have invested if it were not for regulatory failures during the early 1990s.

Treasury financial secretary Mark Hoban said 1992 was chosen as a cut-off date as a result of the Parliamentary Ombudsman’s finding that the maladministration at the insurer only began after this date.

He said: “We are excluding that group of people because they took out policies before any maladministration could have affected their investment decision.”

Liberal Democrat MP for Eastbourne and secretary of the all-party group on justice for Equitable Life policyholders said the decision ignores the recommendations of Sir John Chadwick and the Parliamentary Ombudsman’s reports on how compensation should be paid. He said: “They both said, in writing, in advance, that all the ann-uitants should be treated equally and that these annuitants should not be excluded.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. This is another of the rapidly increasing number of the Government’s alleged pointers to the promised glory days of fair shares in the big society which like so many others has resulted in sadness and injustice. As one who took out an annuity before1992 I feel cheated, extremely angry, knowing that higher members of the Equitable board have trousered money for themselves, some of which belongs to others who will have to suffer. This is combined with a Government policy that can suddenly find money quickly from other sources for other projects that will enhance its image. The challenge always now will be to call its bluff.

  2. He said: “I feel strongly that a group of Equitable Life policyholders has been unfairly excluded from the compensation scheme the Government has put in place.”

    This from the Labour party that fought compensation all the way? That dragged the issue out for 9 years? And even at the end they were going to compensate half those who are now going to get compensation – and even then it was to be means tested?

    Amazing

  3. I am just an ordinary person who knows little about finance or much about how these things work. My wife and I started a pension back in the eighties because the government at that time told us that this was the responsible way to go. Why is our pension not being protected – why are we being penalised when we tried to do the right thing.

  4. Surely people who took out with profit pensions as early as 1992 benefited from over bonusing in the early years?

  5. I joined in 1987 because the 2 alternative illustrations of what I would get in pension in 2009 were so much better than my company’s final salary scheme. I transferred the money to Equitable but the end result is a pension which is ONLY 11.5% or 13.5% of their illustrations. Amazing! It was the maladministration that has robbed me but the compensation is ZERO.

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