MP welcomes Equitable Life bonuses for savers

MP welcomes Equitable Life bonuses for savers

Equitable Life’s decision to reverse last year's cut in their policy values and awarded savers an interim bonus has been welcomed by Tony Wright MP.

Equitable Life’s with-profits pension savers will receive a 3.5% interim bonus on their polices while last year's cut of 2% is being reversed.

Savers in its other life funds receive a 2.8% interim bonus, and a further 1.6% to reverse a cut made last year.

Tony said:

‘This is good news for Equitable Life policy holders who will welcome what is finally a piece of good news. This announcement, coupled to the Government’s agreeing to widen the scope of the forthcoming compensation scheme, will give hope to policy holders that there is light at the end of the tunnel.

‘I also look forward to seeing Sir John Chadwick’s recommendations in the near future, and hopefully we can finally resolve this issue soon.’

The second half of 2009 saw investment returns improve, and the society has freed £100 million from its reserves resulting from its decision to contract out its administration to HCL insurance from 2011. These events have enabled Equitable to offer these bonuses.