Scottish Widows has cut reversionary bonuses on unitised with-profits contracts by 0.5 per cent and terminal bonuses by up to 6 per cent. Reversionary bonuses have not been reduced since January 1999.
ScotWids says the cuts are the result of falling stockmarkets. Contracts written prior to 1998 will receive a cut in terminal bonus of up to 6 per cent.
Contracts after 1998 will receive lower cuts based on individual terms. ScotWids is not currently applying an MVA but has not ruled it out for the future.