Posted by Roger Burtenshaw on 16 December 2000 at 17:11:38:
In Reply to: Equitable Life and AVC Contributions posted by Andy Smith on 16 December 2000 at 10:33:34:
Whilst I agree that AVC holders might be entitled to compensation, I would disagree that the C Plan Fund (or any other Pension Fund) should fund any compensation.
Although Equitable Life was the only option for IBM's AVC, you have always had the FSAVC option. I know that the charges are higher, but the flexability and performance of most equity based Pension Plans have beaten Equitable Life and other Insurance Companies hands down.
First compensation target must be Equitable Life and in particular its Trustees.
Second target would be IBM UK and the IBM UK Pension Trustees.
IBM initially put our A & T Plan monies into UK Provident, till that went bust. Then we were shifted to Equitable Life, which has now failed.
Not a very good track record. Two failures out of Two.
The problems with Equitable life have been known in the trade for some years. Clearly IBM & the Trustees it appointed in the past were either incompetent or negligent.