PTA: Aegon accused of supporting scrapping of benefit
Aegon Scottish Equitable has denied suggestions by The Treasury that it advocated the abolition of pension term assurance (PTA).
Ed Balls, Treasury economic secretary, said that, when the Government was deciding whether it was necessary to abolish PTA, Aegon was cited as being in favour of the abolition. On that basis, The Treasury decided not to allow the continuation of PTA products in the market.
However, following the Budget announcement, Aegon issued a press release clearly outlining its disappointment with the PTA abolition, with Alun Beynon, head of individual protection, saying: "The stated aim of this Budget was to encourage savings and to support and strengthen families. This announcement undermines both of these key objectives."
He added that PTA offered an affordable term assurance product for the mass market. "This is a wasted opportunity to tackle the growing protection gap and could result in people being put off seeking this type of insurance at all," he said.
Mark Locke, spokesman for Aegon, said the idea of the provider being in favour of the abolition was not the case and it was unfortunate that The Treasury used those words. "The comments they used were taken out of context as we provided alternative workable solutions. We were not in favour at all of the PTA abolition," he added.
A total of 145 MPs voted against the abolition of PTA at a House of Commons debate, but a majority of 262 MPs voted in favour of the abolition, ensuring PTA was abolished.
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