Equitable Life with profits pension / takeover.
Options
Comments
-
If the whole point of this is to convert all our with profit policies to unit linked. Why not just sell all the assets (thats what they are doing isnt it?) and then pick the LOWEST cost unit linked policies around (eg Vantage).0
-
Just curious about all this. From a previous employer I have a deferred DB pension that has an associated AVC with EL in it's with profits fund. The AVC becomes mature at the same time as my deferred DB pension at age 65, two years time. I have heard absolutely nothing from the DB scheme trustees or EL regarding this transaction to Utmost. What's likely to happen? Will the scheme trustees vote on behalf of its members? Or am I missing out on voting? I have had nothing from the DB scheme trustees, nor EL, nor Utmost. Thanks for the advice.
I can find nothing in the Proposals which requires group scheme trustess to consult their members. All I can find which is relevant is the penultimate paragraph of the Independent Expert's summary report (on page 159 of Part B of the Explanatory Booklet). The paragraph, concerned with the support for group trustees, includes the sentence: "Group trustees will be provided with support from ELAS [Equitable] on a range of areas they may require assistance on, including support with developing a template they may want to use to send details of illustrations to their members." Note the use of the word "may"!
I'd suggest you contact your group scheme trustees.0 -
Still have not recieved my bumper pack in the post, but I am most grateful to read all the post here and the highlighted issues still to be clarified. I am minded to vote no, however I shall wait until I see further information before making my final decision0
-
christurnerchris wrote: »If the whole point of this is to convert all our with profit policies to unit linked. Why not just sell all the assets (thats what they are doing isnt it?) and then pick the LOWEST cost unit linked policies around (eg Vantage).
If the Equitable sold all its gilts and corporate bonds and put the money into a bond UT, what difference would that make? It would be still in run-off.
The whole point is this; currently the Equitable has to retain capital to account for future unforeseen events. If the deal goes through that capital can be released to with profit holders immediately.
I'm going to vote 'yes', take the money as cash, then transfer it into my SIPP, ASAP. Then I can do what I want with it.0 -
For group schemes, it is the trustees of the scheme that will vote. The voting arrangements allow the trustees to split their vote according to the wishes of their scheme's individual members. See Section 80.16 on page 58 in the Q&A section of Part B of the Explanatory Booklet. The booklet can be downloaded here: www.equitable.co.uk/
I can find nothing in the Proposals which requires group scheme trustess to consult their members. All I can find which is relevant is the penultimate paragraph of the Independent Expert's summary report (on page 159 of Part B of the Explanatory Booklet). The paragraph, concerned with the support for group trustees, includes the sentence: "Group trustees will be provided with support from ELAS [Equitable] on a range of areas they may require assistance on, including support with developing a template they may want to use to send details of illustrations to their members." Note the use of the word "may"!
I'd suggest you contact your group scheme trustees.
I called both Equitable and then my scheme (after advise from EL) and my scheme said that they are sending packs out this week. There was no suggestion that I would not get a vote though.0 -
Still have not recieved my bumper pack in the post, but I am most grateful to read all the post here and the highlighted issues still to be clarified. I am minded to vote no, however I shall wait until I see further information before making my final decision
You should have received it by now.0 -
Can we take it as cash then? I can't see in the investment choices booklet, and if so all of the pension or just the uplift?
My choice would be to cash it in and add to my avc if at all possible.0 -
Can we take it as cash then? I can't see in the investment choices booklet, and if so all of the pension or just the uplift?
My choice would be to cash it in and add to my avc if at all possible.
I think that is what most people would do. Which comes back to the question what's in this for Utmost unless they are going to make moving prohibitivly expensive/difficult?
I guess they are a business so may have worked out even if a very large proportion of the client base leaves immediately, what they can charge processing fees will make it worth their while, and will still leave a decent number of new clients to manage for not much effort?0 -
Firstly I'm new here and wish to thank everyone contributing to the discussion.
Utmost plan to make a stack out of this situation regardless how it ends, as a company whose core business is financial risk management rest assured they plan to be big winners (and most likely the EL execs too). No corporation ever made a decision "in the best interest of policy-holders" without thinking of themselves first. True story.
It's entirely possible that anyone who 'chooses' an investment strategy with Utmost (as is being strongly suggested we should in the literature - cognitive coercion ie investment "deadline") will be deemed to have 'transferred' beyond EL policy (sooner or later) thereby subject to exit fees thereafter. Personally I'll likely wait until the 'in-limbo' SCI option kicks in then transfer out immediately. A short off-market spell would be less damaging to value than any % admin fee.
I have a short memory but not so short as to forget the coercive tactics (blackmail) from EL when they first got into trouble (Dear Sir, we're taking some of your money, leave now and we'll take even more. Several times over!!).
Think like a snake and you stand half a chance of avoiding the poison. Tread very carefully my friends.
I offer no apology for my cynicism0 -
Wife has a very small sum in the above.
I'm just writing this while I am on ( a very long) hold to the NHS Pension scheme. The adviser I am speaking with appears to have never heard of Equitable Life and knows nothing about their current situation. He has now checked and 'nobody' knows anything about it. Suggests I ring E.L.
Pretty sure they will suggest ringing NHS Pensions.
Anybody know any answers?0
Categories
- All Categories
- 343.4K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.8K Spending & Discounts
- 235.5K Work, Benefits & Business
- 608.4K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards