03 November 2010
The Independent Commission on Equitable Life Payments has today
published a discussion paper requesting views on how funding to non
with-profits annuitants should be assigned and prioritised.
In the spending review, announced on 20 October 2010 the
Government stated that it will make £1.5 billion available
for the Equitable Life Payments Scheme, of which, £1 billion
will be paid out in the first three years of the Spending Review.
In addition, it was said that the full cost of relative losses to
policyholders with with-profits annuities and their estates will be
covered.
The Government has asked the Commission to provide advice on how
the money should be allocated among almost 500,000 holders of
individual policies and 600,000 Group Pension policies and to
identify whether the timing of any payments should be
prioritised.
The Commission is to provide its advice by the end of January
2011.
Brian Pomeroy CBE, Chair of the Commission, said:
"The Commission realises policyholders have strong views on this
subject and we urge all interested parties to read the discussion
paper. This is an important opportunity to make their views known
on how funding to policyholders, other than with-profits
annuitants, should be allocated and prioritised in the Equitable
Life Payments Scheme."
To view the discussion paper click
here
