Scottish Widows has become the latest pension provider in the UK to decide to opt customers back into the State Second Pension.
Following moves from sector leaders Prudential and Norwich Union, Scottish Widows is planning to automatically contract 7,500 of its customers back into the State Second Pension unless they actively opt not to move, IFA Online has reported.
The pension company believes that the policyholders in question, all of which are over 50 and are direct customers, will be better off in the state pension scheme.
According to IFA Online, all of the affected customers will receive two letters from the company informing them of the intention before any action is taken. However if they do not actively inform Scottish Widows that they do not want to make the move their pension will be automatically transferred at a set date in the future.
Customers who were introduced to Scottish Widows by independent financial advisers will not be included in the action. All affected customers should be contacted by the end of January 2006.