27 November 2002 - Annuitants letter to their MP

Dear Sir,

CH Pye Annuitant Policy Holder of Equitable Life

I am sure you are aware of the debacle surrounding Equitable Life and it's recent announcement to cut pensions by 30% for those of us receiving our pensions at present, and who hold With Profits Policies.

The failure to act by the FSA and previous regulatory bodies since the Society closed to new business in 2000 could be considered as negligent at best and at worst conjoined in a "cover up" with the Treasury, the Equitable Life Board and the Parliamentary Ombudsman.

The Inquiry by Lord Penrose is said to be not available until 2004 or later (by which time I shall be 72-or dead and gone!) It would appear that this a matter of obfuscation and delay and "buck passing" so that any ruling will be time barred and the annuities which, I predict, will be reduced by the Society, step by step to almost nothing next year, will enable the Government to indulge in massive hand wringing and regret and be able to hold their heads up to say "we have paid 90% of the outstanding annuities" --the fact that 90% of nothing is nothing, will not be mentioned.

The Parliamentary Ombudsman has said "the root cause of the problem is the failure of the authorities to establish at the outset a single enquiry with terms of reference covering all aspects of the affair" and that an Interim report of the Treasury Select Committee, concluded, that serial regulatory failure had occurred since 1994!

All of us voted for a compromise that would reduce our pensions annually at a rate of 2.5% (approx) every year. Whereas this was not ideal, it was a compromise. The Society has now reneged on this deal and reduced my pension by 30% from the 1st Feb2002.

The Managers and Board of the Company now include, amongst others

1) Vanni Treves Chairman -a self confessed contributor to New Labour
2) Charles Thomson CEO-who left Scottish Widows after some discussions about his handling of their With Profits Fund

I would be pleased if you could take up the cudgels on this matter and add your undoubted weight to any discussion and also impress on Lord Higgins (The opposition spokesman for Work and Pensions) the importance of this matter for all of us in this plight.

To us annuitants, this is neither an academic matter nor an opportunity for politicians to discuss "issues", but represents all our life's contributions to our pension fund contributions from 16years of age to 65.

I have enclosed documents "The Comprehensive Case for proving Regulatory Failure" and a document E7, which is issued by seven groups of Members of Equitable Life that have been affected by this debacle.

Your help in this matter will be most appreciated , especially as this is the first time I have ever addressed an MP or any politician in my 70 years of life!

Yours faithfully

PS I have forborne to mention that while this has been occurring Robin Cook has increased MP's salary and pension provisions unilaterally-for which I am going to have to pay for evermore!