27 November '02 - Extract from an annuitants letter to their MP

Annuitants should write the Compliance Officer at ELAS disputing the action and indicating unless they receive a favourable reply, they will take it up with the Ombudsman.

1. Annuitants were unaware that that part of their annuity payment was in effect a discretionary bonus which the Society might rescind retrospectively as it is doing now.

2. The Appeal Court and H of L held that discretionary bonuses could not be arbitrarily rescinded. They were part of policy holders reasonable expectations - PREs

3. The Society gave no indication whatsoever when annuities were sold that backwards claims could be made on annuities already paid. To do so would have gone against the concept of annuities.

4. Policyholders assumed, and were led to believe, that significant market falls were cushioned by smoothing funds. These probably did not exist and if so, and the Society believes it is entitled to do what it is doing, then there may be good claims for mis-selling.