MPs' inequitable pensions

Published on Sunday 18 January 2009 19:57

The Treasury minister, Yvette Cooper, announced that the government would compensate only a few Equitable Life policyholders because there would be serious repercussions if the taxpayer had "to provide a remedy for all losses every time a regulator fails to prevent a financial institution getting into trouble" (your report, 17 January).

Apparently, MPs' losses are an exception. Part of the pensions of many MPs used to be in a group scheme with Equitable Life. When the insurer ran into trouble in 2001, the MPs' group scheme was quickly transferred out. Less than a year later, generous compensation was announced for MPs – an immediate 25 per cent increase in their main pensions and a new gilt-edged pension arrangement – both funded by the taxpayer. I wonder how many of today's government ministers benefited from their early escape and why they steadfastly oppose compensation for the majority of policyholders they left behind.

(DR) HUW A JOHN

Kirkhill Drive

Edinburgh