Structured Settlements 4Real™ Blog: Structured Settlements | Settlement Planning News and Commentary: ELNY Hardship Fund

It has been reported by various sources that ELNY structured settlement annuitants who experience payment reductions may be eligible for some relief from the ELNY Hardship Fund, a $100 million pot of money to be funded with voluntary contributions from a variety of life insurance companies. To some it sounds promising, but there has been little information about the fund. A call this author made to the ELNY Hardship Fund information line earlier this year was met with the recording that an administrator has not yet been appointed. That was still the case today when I called. This time however, I was able to reach a live person who said that ELNY structured settlement annuitants who experience shortfalls WILL (EVENTUALLY) BE NOTIFIED by the administrator. Unfortunately for those seeking certainty, who are asked to be patient, the time frame is uncertain. The ELNY Hardship Fund contact could not give a time frame when an administrator will be named, procedures will be in place, notifications will go out and money will flow.

Like the punchline to the Natasha Bedingfield lyric, "the rest is still unwritten". ELNY annuitants want to know when the ELNY Hardship Fund will begin to open up "that dirty (ELNY) window"

ELNY Hardship Fund information line (1-888-809-2254)

Figuratively speaking, let's hope the hardship payments for eligible ELNY annuitants are closer than the moon is to this telescope----------------------------------->

No doubt some ELNY annuitants probably would prefer to be able to " do the limbo" rather than "being in limbo"

The National Structured Settlements Trade Association has "soft-shoed" the introduction of it General ELNY Information webpage. Better late than never, the fact that the page was introduced on the very last business day that ELNY structured settlement annuitants could file objections to the proposed plan of liquidation is not lost on many of the association's members.

Ironically the web page states that "the NSSTA created this section to provide information (including links) for two reasons:

To help ELNY annuity payees affected by this liquidation to understand their options, including access to an independent $100 million "hardship fund" that is being established for their benefit; and,
To explain what happened with ELNY, specifically how risky business practices pursued by Executive Life in the 1980s -- practices that have since been prohibited - caused this situation".

I know it will not be lost on my readers that the NSSTA inadvertently emphasizes " to help ELNY" as opposed to "to help ELNY annuitants".

While its work behind the scenes has been subject to a confidentiality agreement, as the face of the structured settlement industry, the NSSTA needs to step up to the plate and do a better job providing timely information at the time of crisis. With respect to providing timely information to ELNY structured settlement annuitants, I believe the association is deserving of this public criticism because it has not done so by a mile.

The NSSTA web page states that NSSTA encourages all ELNY annuity payees facing benefit reductions to apply for support from the Hardship Fund. Applications for Fund support are expected to be distributed directly to payees who have been notified that their benefits will be reduced. For more information about the Hardship Fund, please call toll free at 1-888-809-2254.

A caller to the ELNY Hardship Fund toll-free telephone number (1-888-809-2254) on Friday 13, 2012 will hear a recorded message to the effect that eligibility for the ELNY Hardship Fund, and the rules, guidelines and process for applying to the ELNY Hardship Fund will be determined by an independent administrator that has not yet been appointed.

*blue emphasis is ours

Limbo Image: Wikipedia