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Standard strikes back at bagger&#39s windfall claims

Standard Life has gone on the offensive against carpetbaggers by disputing

the forecast windfall figures.

The company claims carpetbagger-in-chief Fred Woollard is raising false

expectations among members by suggesting the average windfall would be

around £6,000.

Standard says the actual amount paid out in the event of the company

demutualising would be considerably less for the majority of members.

It believes the average member would get less than £2,500 and many would

get as little as £250.

The company says Woollard is using averages when quoting potential

windfalls and claims that payouts would be skewed towards the minority at

the cost of the majority, with members with several plans and bigger plans

benefiting at the cost of the average member.

Standard says Woollard is using the “mean” for payouts when he should be

using the “median” to show a true picture.

It has declared Tuesday, June 27 as the date for a special general meeting

to vote on the resolutions laid down by Woollard. Standard is hoping it

will be able to convince its members that mutuality works and is in their

best interests.

Standard is writing to members with voting rights to outline the benefits

of mutuality.

The letter explains how mutuals have consistently delivered better overall

returns than their plc rivals.

Standard says independent analysis shows its matured policies have

outperformed plc rivals by nearly 10 per cent each year for the last 15

years.

Group managing director Scott Bell says: “Mutuality is at the heart of

Standard Life&#39s success and serves our members well, providing the benefits

of top-performing policies and long-term financial security, and we believe

it should be preserved for the future.”

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