Pension and benefits.

Other benefits for executive directors provided by the Group are:

• pension scheme;
• medical insurance;
• car allowance; and
• staff discounts.

Our products can be acquired by executive directors on the terms available to members of staff.

Pensions

Three of the executive directors (Tim Breedon, John Pollock and Mark Gregory) are members of the Group UK Senior Pension Scheme (‘the Plan’), details of which are given in the Pension Entitlements section below.

Executives who elected solely for primary protection in response to the lifetime allowance introduced as part of the reforms to pensions legislation in 2006, remain in the Plan. For those executives who elected for enhanced protection, they have opted out of the Plan for future service accrual. Consistent with the legislation, affected executives will be entitled to a pension determined by reference to pensionable earnings at retirement, provided this does not breach the enhanced protection requirements.

From 1 January 2009 onwards, the increases in pensionable salary under the Plan have been capped at a maximum of 2.5% each year for active members (including relevant executive directors). For Tim Breedon and John Pollock, both of whom opted for enhanced protection and no longer accrue pension within the Plan, their non-bonusable salary supplement is now 22% of the equivalent of the ‘capped pensionable salary’ had they remained members of the Plan from 1 January 2009, reflecting a broadly equivalent benefit to the application of a 2.5% per annum pensionable salary increase cap. In addition, their basic salary at retirement will no longer be used to determine their ultimate pension entitlement.

In accordance with the benefit changes made with effect from 1 January 2009, accrued pension to 31 December 2008 based on final pensionable salary at 31 December 2008 will increase by:

a) for pension earned before 6 April 2006 the greater of the retail price index (RPI) and national average earnings (NAE), with a maximum of 5% in any year; and

b) in respect of service from 6 April 2006 to 31 December 2008 the lesser of 5% per annum over the whole period and the [RPI].

Retirement

On retirement from Legal & General at age 60 and subject to statutory limits, executive directors are entitled to pensions as follows:

Andrew Palmer: two-thirds of his annual ‘capped’ pensionable salary at retirement.

Mark Gregory: one-sixtieth of his eligible pensionable salary for each year of eligible service.

(From 1 January 2009 onwards, the increases in pensionable salary under the Plan are capped at a maximum of 2.5% each year for active members, including relevant executive directors).

Tim Breedon and John Pollock: one-sixtieth of eligible salary for each year of service through to the date they opted for enhanced protection. Since opting for enhanced protection on 6 April 2006 they have received a cash supplement in lieu of pension accrual as shown in the Directors’ Remuneration table on page 59. Consistent with the legislation, their pension entitlement at retirement remained linked to their salary; however, this linkage ceased at 31 December 2008.

Nigel Wilson: Nigel Wilson is a member of the Company’s defined contribution arrangements, the Legal & General Staff Pension Plan. He is entitled to a company contribution of 15% of his pensionable salary.

Bonus sacrifice into pension

Directors, like all managers, may elect, before its award, to sacrifice all or part of their cash bonus into pension. Bonus sacrifice is at the discretion of the Company each year.

Death in service

On death in service, a capital sum equal to four times salary is payable, together with a spouse’s pension of four-ninths of the member’s annualised salary. Protection is also offered in the event of serious ill health. This latter benefit has no transfer value in the event of the member leaving service.

Pension entitlements

(Download XLS:)

Name	Age at 31 December 2009	Increase in accrued pension in 2009 £’000	Accumulated accrued pension at 31 December 2009 £’000	Transfer value of accrued benefits at 31 December 2009 £’000	Transfer value of accrued benefits at 31 December 2008 £’000	Increase/ (decrease) net of employee contributions in 2009 £’000
The increase in accrued pension during the year excludes any increase for inflation. 1. Nigel Wilson is a member of the defined contribution arrangement. The Company contributed £27,296 into his fund in 2009. The information in this table has been audited by the independent auditors, PricewaterhouseCoopers LLP .
Tim Breedon	51	13	279	5,810	5,291	518
John Pollock	51	8	174	3,587	3,251	336
Mark Gregory	46	5	30	521	404	114
Nigel Wilson1	53	0	0	0	0	0
Andrew Palmer	56	25	287	6,615	5,811	798
Kate Avery	49	10	49	890	673	212