News has been released this week by Legal & General and Scottish Mutual regarding further cuts to their With Profits Funds bonuses.
Legal & General announced that terminal (or final) bonuses have been cut by 7.5% for savings and life based policies and 9.5% on pension policies. If you have already received a written statement from Legal & General that does not include these reductions, the statement values will be honoured.
Scottish Mutual have made cuts for the second time this year. The first set of bonus cuts in March 2002 cut terminal bonuses by around 15% and annual bonuses by around 1%. In the most recent bout of cuts, terminal bonuses have been reduced by around 6% with annual bonuses cut by a further 0.5%.
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