Commission consults on compensation payments
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