Equitable Life is slashing 16 per cent off the value of pension funds in a bid to balance its books.
The cut by the troubled life office sees a pension fund worth £50,000 last year now worth £42,000.
Equitable Life is also cutting the value of life assurance policies by 14 per cent, and will not be paying out any bonuses for the first six months of 2001.
Equitable Life chairman Vanni Treves says: “Difficult times require difficult decisions. Given the impact of market movements, the board believes this action is absolutely necessary and is in the long term interests of policyholders.”