Equitable Life - Pensions

M

mocna

Guest
A few years ago whilst working in the UK I took out a pension with EL (with profits).
Can somebody tell me what remedy is available to me now if any,
can I switch to another fund or preferably can I cash it in.
 
You can switch to another provider; whether you should or not is a very difficult decision, but a decision for you. You cannot cash in.

We're not really well clued-in on the UK situation on this Board. I suggest you have a look at www.fool.co.uk, where they have a discussion board devoted entirely to the Equitable Life.
 
Equitable life

I currently live in London and while I am no expert in this area I can tell you that in the middle of all the horror in America yesterday Equitable Life quietly announced an increase in exit penalties from 6 to 10%. so thats on top of the other problems with them.
 
Equitable Life

The best way to ensure security thru the EL debacle is to VOTE YES TO THE COMPROMISE DEAL.

EL is a very valuable company, despite everything, and will be ripe for a takeover after a Yes vote and halifax add their £250M to the pot.

Then you will see bonuses being restored and in all probabilty the MVA being removed (although this is due to the world economic downturn and not the EL situation...viz all other with profit companies have introduced an MVA since 11/Sept)..

It would be really bad advice to cash in a pension fund now.
 
equitable life wp pension

seems there has been little exchange here regarding EL's proposals to sort out the GAR dilemma

do any AAM readers know?

1/ what the media read is on the likely outcome of EL's proposals to its WP members, ie. are a sufficient % of GAR and non-GAR alike likely to vote in favour of the package for it to be accepted. Without this, it seems to me that all EL WP pension holders are well and truly screwed and we may as well jump ship and transfer now.

2/ what the situation is for Irish WP pension holders. There seems to be absolutely no clarity whatsoever regarding the Irish part of the group (do we sink with all of the UK policyholders in the event that proposal is not accepted?, what are the penalties for transferring now? etc).

Finally, if any AAM reader has had occasion to transfer an EL WP pension to another pension provider recently and the experience has been reasonably painless, I'd appreciate any brief acct.

For info, I have had an EL policy putting in £220 pm for last three years, policy should be worth c. £7k by now. I am in mid30s, moving into occupational scheme in 2002 but would like to keep this up with small regular payments but not with a co. that is going to continue offering its pensionholders bad news every three months.

Thanks in advance. Z.
 
equitable life

just a word of info for fellow EL WP personal pension holders...

i rang today 6763003 to get some info on my policy and to advise i was cancelling direct debit, ie freezing my acct prior to arranging a transfer to another provider

got a long phone msg re EL's current situation, at the end of which was asked to leave details for further contact

TO MY SURPRISE, I was called back within quarter of an hour by one Rob Davis (Equitable LIfe international) who was able to give clear advice on policy values and the mechanics of arranging policy freeze and transfers.

EL are deducting 15% MVAs from Irish WP policies ...if your policy is mixed unit linked / wp (as mine is), the 15% deduction only relates to the WP component.

EL will be circulating policy value reports on Nov 26th, he says.

ANYWAY, give him a call if you need some advice on your personal EL WP policy, give him a call
Rob Davis, 00-44-1296-386198
 
EL MVA

<!--EZCODE BOLD START--> EL are deducting 15% MVAs from Irish WP policies<!--EZCODE BOLD END-->

Just to clarify - I presume this MVA applies only to policies cashed in before maturity (5 years for WP bonds, retirement for pensions (?)) and that capital and all bonuses are paid at maturity?
 
equitable life

can't help you i'm afraid CM though I suspect the answers to your questions are generally YES

my query to EL related only to penalties on transferring a personal pension to another provider: 15% MVA applies to the WP element of the pension but not to the UL element

one other thing that was mentioned btw in my conv. with EL, which may or may not have been covered in earlier postings on AAM: Irish customers suffer only the 15% MVA as per para above; UK customers also had to endure a general 15% cut in the value of their policies earlier this summer, in addition to any 15% MVA in the event of a transfer.

Z
 
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