Scottish Widows sued again over company pensions

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The Independent Online

Life insurer Scottish Widows has been issued with two further writs from former corporate clients alleging the firm offered negligent advice over their pension schemes.

The claims, on behalf of two unnamed firms, have been made by the Actuarial Review Company (ARC), an independent consultancy. The group is thought to be advising other companies on possible actions that could, if successful, cost Scottish Widows up to £1bn.

The latest writs mirror a claim made last year that alleges Scottish Widows encouraged some pension schemes to give up guarantees that protected against the risk of pensioners living longer than expected, at the height of the dot-com boom in 1999 and 2000.

It is alleged that by waiving these guarantees, hundreds of schemes could have lost out to the tune of £300m.

An August date has been set for the hearing of the original case brought by ARC on behalf of WTL International, in Scotland's Court of Session.

A spokesman for Scottish Widows, which denies ARC's claims, said: "We can confirm that there have been two further claims. However, we are yet to hear if the parties will pursue formal court proceedings."