12 Jan 2020, 13:18
I still have bonusplan AVCs with Equitable Life which closed to new business some years ago. Currently I have bonusplan AVCs with Zurich/Scottish Widows. I see in the news that Equitable Life is being bought out by Reliance Life and they are paying lump sums to some existing plan holders. Anybody know if AVCs qualify for a lump sum? Apart from an annual statement I never receive any correspondence from them.
12 Jan 2020, 17:11
Having done a quick Google it sounds as if you might be eligible, but it's hard to say for sure.
There's been a certain amount of activity over the last 18 months to facilitate the transfer, including court action and policyholders voting. So I would have thought if you were eligible you would have also got a vote, unless RM had some kind of group vote?
My advice is to get in touch with Equitable Life, Reliance Life and the RM Pension Service Centre in Sheffield and ask.
I originally had my Flexiplan invested with Equitable Life, but transferred out when the company first went belly up about 20 years ago. I had to pay a 15% 'release fee' and wouldn't have got the steady 3.5% per year returns that EL has paid.
But I regard transferring out as one of my best financial decisions, as the returns I've seen over the last 20 years far outweigh what I would have got had I stayed.