Connected Research

Union policy research in the 21st century

Equitable Life holders gain right to full hearing

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EMAG, the independent group representing Equitable Life policy holders, has won the right to a full hearing over what it claims as the government’s failure to offer full compensation after Equitable Life early collapsed in 2000.

In July 2008, Parliamentary Ombudsman Ann Abraham reported ten instances of maladministration from a range of government departments, some of which the government disputes, and called for a compensation scheme for more than a million policy holders suffering large cuts to the value of their pensions as Equitable Life struggled to stay solvent. The response of the government has been to offer limited, discretionary payments to some of those worst affected on a hardship basis and it has commissioned Sir John Chadwick, a former High Court judge to identify those who may be covered by these arrangements.

The case will examine what EMAG claims is the Treasury’s failure to act on the Ombudsman’s recommendations as well as its ‘continued intransigence’ in the matter. The main aim of its case is to challenge the ‘lack of cogent reasons’ for the Treasury’s refusal to accept some of the Ombudsman’s findings, but EMAG is also challenging the narrow remit given to Sir John.

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Written by Calvin

27/05/2009 at 1:18 pm

Posted in Pensions

Tagged with ,

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