Update 19th Jan 2012
Update 12th Nov 2011
Life Payment Scheme
update to the Equitable Life Payment Scheme has been published
on a dedicated website set up by the Treasury relating to all
aspects of the payment scheme. The web site appears to answer
most of the questions that I have seen about the scheme and as
it affects WPAs
strongly recommend that you read it.
Update 17th May 2011
Life Payment Scheme
Equitable Life Payment scheme was published by the Government
on May 16, 2011.
of the scheme can be found at
call centre – 0300 0200 150 – has also been set up
relevant details can be found under the section headed
Equitable Life Payment Scheme design – The main part of the
Scheme Design for Parliamentary Review including a brief
Equitable Life Payment Scheme design – technical annex
Part of the Scheme Design for Parliamentary Review
strongly encourage you to read the Main document. The
technical annexe sets out how the calculations will be done.
13th December 2010
The Spending Review announced on 20 October 2010 has given £1.5
billion to Equitable Life with profit policyholders with the
main concentration on with profit Annuitants. The payments
will start in 2011, for those who became annuitants after
September 1992, over the life of the annuitant.
here for some Questions and Answers
– The Reason Why
set up in 2003 as I considered at the time and as time has
proved the With-Profits Annuitants (WPAs) of Equitable Life
were let down by the Regulator for the following reasons.
The purpose of compulsory annuity purchase is to require
individuals to secure a safe and reliable income for
retirement when, crucially, they will be unable to supplement
their income from alternative sources. Since this is a key
statutory requirement that an individual MUST buy an annuity,
it follows that the regulating authorities have an absolute
obligation to ensure that the products offered on the market
can meet that statutory objective. Any failure to do so must
inevitably result in a justified claim for mal-administration.