Pension entitlements and other benefits.

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 base salary (which is lower than actual base salary as only the lower of actual base 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 base 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 base 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 ‘Single figure’ of remuneration section.

Tim Breedon and John Pollock: one-sixtieth of eligible pensionable base salary for each year of service through to the date they opted for enhanced protection in 2006. They received a cash allowance in lieu of pension equivalent to 22% of base salary. This is subject to normal payroll deductions of income tax and National Insurance.

Nigel Wilson: Nigel was a member of the Group’s defined contribution arrangements. During his participation, he was entitled to a Company contribution of 15% of his pensionable base salary if he also contributed 5%. Any balance over and above the Annual Allowance limit was paid in cash and was subject to normal payroll deductions of income tax and National Insurance. During 2012, he took fixed protection. Since this time he has received a cash contribution of 15% of base salary which is subject to normal payroll deductions. The cash allowance received is shown in the table below.

Mark Zinkula: He is entitled to a cash allowance of 15% of his base salary. This is subject to normal payroll deductions of income tax and National Insurance. He uses part of his cash allowance to contribute into a 401K pension. He also participates in a cash balance plan in the US.

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.

None of the executive directors elected for bonus sacrifice. Over 150 employees elected for some bonus sacrifice in relation to the March 2013 pay review.

Death in service

On death in service, a capital sum equal to four times base 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.

Executive director pension information

(XLS:) Executive director pension information

Name

Age at 31 December 2012

Increase/ (decrease) in accrued pension in 2012
£000s

Accumulated accrued pension at 31 December 2012
£000s

Transfer value of accrued benefits at 31 December 2012
£000s

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

Increase/
(decrease) net of employee contribution in 2012
£000s

Note 1 – Tim Breedon resigned from the Board on 30 June 2012 and retired from the Company on 31 December 2012. The figures above show the full year 2012. He has enhanced protection and receives a cash allowance of 22% of base salary which is subject to normal payroll deductions. This is shown in the ‘Single figure’ of remuneration section.

Note 2 – Nigel Wilson was a member of the defined contribution arrangement but took fixed protection during 2012. The Company contributed £4,589 into his fund in 2012 (includes his 5% contribution). Nigel now receives a cash allowance of 15% of base salary which is subject to normal payroll deductions. This is shown in the ‘Single figure’ of remuneration section.

Note 3 – John Pollock has enhanced protection. He receives a cash allowance of 22% of base salary that is subject to normal payroll deductions. This is shown in the ‘Single figure’ of remuneration section.

Note 4 – Mark Gregory left the defined benefit plan on 30 April 2011 and joined the defined contribution (DC) plan. The Company contributed £51,073 into his DC fund in 2012 (includes his 5% contribution). Mark receives 15% of base salary contribution towards his pension with any balance over the £50,000 annual allowance paid as a cash allowance subject to normal payroll deductions. This is shown in the ‘Single figure’ of remuneration section.

Note 5 – Mark Zinkula receives 15% of base salary as a cash contribution towards his pension which is subject to normal payroll deductions of income tax and National Insurance. This is shown in the ‘Single figure’ of remuneration section. He contributes towards a 401K provision in the US and the Company put in $6,767 in 2012. He also participates in a cash balance plan in the US.

Tim Breedon – note 1

54

18

305

8,312

6,407

1,713

Nigel Wilson – note 2

56

John Pollock – note 3

54

11

191

5,128

3,954

1,055

Mark Gregory – note 4

49

2

39

806

641

146

Mark Zinkula – note 5

45

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