Prudential Rothesay transfer

eumaeus

After a successful Appeal in December 2020, the applicants (Prudential Assurance and Rothesay Life) will be asking for the Scheme to be sanctioned https://www.pru.co.uk/annuitytransfer/

 A number of policyholders continue to oppose the transfer, on the basis that their security of benefits will be materially diminished as a result. Anyone wishing to join the campaign can contact me here http://eumaeus.org/wordp/index.php/contact/, and I am happy to discuss any issues arising on this thread. One issue is that the Independent Expert Report was circulated to the Court and the regulators without involving the group of policyholders. Another is that the time planned between the wider circulation of the Report and the Sanction hearing, currently tabled for November 2021, is not enough for policyholders to provide adequate challenge.

dunstonh

A number of policyholders continue to oppose the transfer, on the basis that their security of benefits will be materially diminished as a result.

Annuities get 100% FSCS protection with no upper limit.  Protection will not be diminished.

eumaeus

dunstonh said:

A number of policyholders continue to oppose the transfer, on the basis that their security of benefits will be materially diminished as a result.

Annuities get 100% FSCS protection with no upper limit.  Protection will not be diminished.

(1) FSCS not guaranteed far into the future. Indeed, if a sufficient number of firms go under, the system may collapse under the strain.

(2) after a year of chasing FSCS, they confirmed that the pension contract is not guaranteed, and a pensioner may only get an actuarially estimated lump sum from which they will have to purchase a new annuity at estimated market value. Not something I fancy having to do at the age of 90.

[EDIT] See also Justice Snowden’s decision https://www.bailii.org/ew/cases/EWHC/Ch/2019/2245.html  para 155

 “I do not consider that it can be right that commercial parties should be able to rely upon the potential availability of a public or industry fund of last resort such as the FSCS – the rules of which might in any event be changed over the lifetime of the annuities – as a solution to any shortcomings in their schemes.”