What was the compromise scheme?
The compromise deal that Equitable Life put forward and which was sanctioned by the High Court, said that GAR policyholders must give up their right to guaranteed rates in exchange for an uplift in their policy of around 17.5%. In January 2002 Equitable policyholders approved the compromise scheme to end the society’s liability to its guaranteed annuity rate policyholders (GARs). Equitable needed the support of 75% by value of all policyholders who voted and 50% by number. Each proposal was passed by majorities of between 97.3% and 99.2%. The scheme became binding on 8 February 2002 and GAR policyholders should have been written to regarding the payment of the uplift in their policies.
