I attended an EMAG meeting of Equitable Life policy holders in the Wokingham constituency, at their request. They set out their unhappiness about the way compensation claims are being handled, and about the level of compensation.
I said I am happy to take up anyone’s case who still has received no compensation. The clearly stated aim of the government was to distribute compensation promptly, and people by now should have heard from those administering the system. They should email or write to me at the Commons, stating how far they have got, and their policy number(s).
I am also willing to take up cases where people have received some compensation but they think it is too small, or do not understand how it has been calculated.
I agreed to raise the general issue with the Minister of why the Financial Services Compensation Scheme did not apply to Equitable Life, and what the Treasury’s current thinking on this is, in the light of the Regulator’s conduct when the seriousness of the position had come to light. I will also ask if a clearer statement of the basis of calculation of the compensation can be provided.
August 24, 2012
So whilst you are talking about pensions.
What about the state pension?
If a median worker had put their NI into the FTSE, they would have a pension, linked to RPI, joint life, at 65 of 19K a year.
Instead you’re paying out 5K, not fully joint life, at 67, linked to CPI.
2 years less income, two years more to pay in, losses on the joint life. CPI instead of RPI is also 25% off the value over a retirement.
So I take it you won’t be offering compensation for the scheme you are running?
August 24, 2012
The other interesting point about comparing ELAS and government is this.
Equitable life went down the toilet because they didn’t record the GARs as a liability in their books and paid out lots of money to early joiners.
Then when the liabilities had to be recognised, they screwed their pensioners.
In addition, lots of MPs were allowed to get out early.
Contrasted with
The government doesn’t recognize its obligations in its books and so pays out lots to early joiners. When those liabilities become due, it reneges on them. MPs of course make sure they have a fully funded scheme. When that showed a short fall, they just help themselves to taxpayer’s money to top it up.
It’s the same.