Scottish Widows to boost GAR policyholders

Scottish Widows is changing the way it calculates benefits for guaranteed annuity rate policies from tomorrow which means the final or 'terminal' bonuses for most guaranteed annuity rate policies will be increased. Changes to the system are being carried out with the full authorization of the Financial Services Authority, to reflect the ruling made in the Equitable Life v Hymans judgment in the House of Lords in 1999, which said the guaranteed annuity rate must stand if interest rates drop to a low level , as agreed in contracts with policyholders. Alternations now mean most GAR polic...