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ScotLife slashes terminal bonuses

Scottish Life has slashed terminal bonus rates only months after deciding not to pay additional reversionary payments from its demutualisation.

The company says “the reduction continues the process of smoothing down payouts to reflect stockmarket falls over the past two years of so”.

ScotLife provoked criticism when it did not pay out the promised additional reversionary bonus to with-profits policyholders following its takeover by Royal London, which injected £980m into the with-profits fund.

At the time, ScotLife said that the money was still in the pot and policyholders would see it in their terminal bonuses.

Head of communications Alasdair Buchanan says: “You cannot defy gravity and rates have to come down at some stage. Different companies take different approaches to smoothing but it all comes out in the wash.

“It is not possible to separate the maturity figures from before and after the takeover. There is a significant increase, it is just that we cannot say by how much.”

Wentworth Rose managing director Philip Rose says: “It is very disappointing. It again opens up the question of transparency and with-profits. What they are saying is &#39trust me, I am an actuary&#39. Scottish Life should make a real effort to show us where the money from the takeover is.”

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