Ex Equitable Life With-Profits Annuities - special bonus 2008
Prudential are pleased to announce on behalf of Equitable Life that a Special Bonus of 3.01% has been awarded.
The Special Bonus has arisen because the amount transferred to Prudential in respect of the transferring With-Profits Annuities was greater than the minimum amount required to fund these annuities. Therefore the difference is being distributed by means of a Special Bonus which will be used to increase the non-guaranteed part of those annuities (known as the Total Annuity). Please note that if we are currently paying you a Guaranteed Annuity, then you may not see an immediate change in your gross annual income; this is because the terms of your annuity state that we must pay the greater of your Guaranteed Annuity and the Total Annuity.
If you are in receipt of one of these annuities, over the next few days, you will receive a letter from us detailing how the special bonus affects you.
Example of Special Bonus Letter, Q & AsFor more information regarding the transfer of Equitable Life With-Profits Annuities, please click here.
Parliamentary Ombudsman's report
Equitable Life: A decade of regulatory failure
Following the recent publication of the Parliamentary Ombudsman report, Equitable Life felt it important to share their views of the report and its findings and will shortly be writing to all their existing and former policyholders. This includes writing directly to those With-Profits Annuitants who transferred to Prudential earlier this year.
If you have any questions regarding this letter, please contact Equitable Life direct on 0845 603 6771 (or 00800 1020 1040 if calling from outside the UK) or visit their website www.equitable.co.uk
Please note Equitable Life's letter does not affect any of the information contained in our letter regarding the Special Bonus.
What is the current situation regarding the government's response to the Parliamentary Ombudsman (PO) findings and will Prudential be supporting this work?
As announced in January 2009, Sir John Chadwick has been advising the Government on any possible ex gratia payments to former or current Equitable Life policyholders. During 2009 and early 2010 Sir John issued three interim reports and in July 2010 the Government announced the publication of Sir John Chadwick's final report on Equitable Life.
In addition to the publication of Sir John's report the Government has also introduced draft legislation which will enable payments to be made to policyholders and announced the members of the independent commission which will advise the Government on the best way to allocate payments.
You may wish to refer to the following websites for further details:
http://www.chadwick-office.org/
http://www.publications.parliament.uk/pa/cm201011/cmbills/062/11062.i-i.html
As highlighted in the Welcome Brochure issued to those former Equitable Life policyholders transferring to Prudential, we will support the fair distribution of any Government compensation to former Equitable Life policyholders who have transferred to us.
