8) OTHER BENEFITS.


Pensions

On retirement from Legal & General at age 60 and subject to statutory limits, executive directors have pension entitlement as follows:

Mark Gregory: one-sixtieth of his eligible pensionable salary (which is lower than actual base salary as only the lower of actual salary increases and 2.5% has been credited since January 2009) for each year of eligible service subject to him continuing his 5% of pensionable salary contribution. Mark left these defined benefit arrangements at the end of April 2011 and joined the defined contribution scheme. He is entitled to a Company contribution of 15% of his pensionable salary if he also contributes 5%. Any balance over and above the Annual Allowance limit is paid in cash and is subject to normal payroll deductions of income tax and National Insurance. This cash allowance is shown in the table in the Remuneration policies section.

Tim Breedon and John Pollock: one-sixtieth of eligible pensionable salary for each year of service through to the date they opted for enhanced protection in 2006.

Nigel Wilson: Nigel is a member of the Group’s defined contribution arrangements. He is entitled to a Company contribution of 15% of his pensionable salary if he also contributes 5%. Any balance over and above the Annual Allowance limit is paid in cash and is subject to normal payroll deductions of income tax and National Insurance. This cash allowance is shown in the table in the Remuneration policies section.

Bonus sacrifice into pension

Executive directors, like all managers, may elect, before its award, to sacrifice all or part of their cash bonus into pension. The opportunity for bonus sacrifice is at the discretion of the Company and is reviewed 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

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Name

Age at
31 December
2011
 

Increase (decrease) in accrued pension in
2011
£’000

Accumulated accrued pension at 31 December
2011
£’000

Transfer value of accrued benefits at 31 December
2011
£’000

Transfer value of accrued benefits at 31 December
2010
£’000

Increase/ (decrease) net of employee contributions in
2011
£’000

The increase in accrued pension during the year excludes any increase for inflation.

1

Mark Gregory left the defined benefit plan on 30 April and joined the defined contribution plan. The Company contributed £36,186 into his fund from May to December 2011 (includes his 5% contribution).

2

Nigel Wilson is a member of the defined contribution arrangement. The Company contributed £70,071 into his fund in 2011 (includes his 5% contribution). The contribution in 2010 was £110,879.

The information in this table has been audited by the independent auditors, PricewaterhouseCoopers LLP.

Tim Breedon

53

12

287

6,407

5,553

567

John Pollock

53

8

179

3,954

3,412

364

Mark Gregory1

48

3

36

641

543

35

Nigel Wilson2

55

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