LEGAL & GENERAL ACHIEVES 99.5% SCHEME MEMBERSHIP FOLLOWING AE.
17 September 2013
Legal & General, one of the leading providers of Workplace pensions and Benefits in the UK, has increased pension scheme membership to 99.5% of its eligible employees after completing auto enrolment staging this year.
Prior to staging the majority of employees were already enrolled in its qualifying stakeholder defined contribution (DC) pension scheme. However, 207 employees were required to go through the AE process. Only 11 opted out (5%), which has resulted in an overall participation rate of near 100%.
The company is also pleased to announce that, as of 31 July, contribution levels already match the Government’s AE target for total contributions (at least 9% by end 2017) for over 96% of its employees.
To complete auto enrolment Legal & General asked auto enrolled employees to pay a default contribution of 2% into the pension scheme, which it matched.
Combined with the standard Legal & General employer contribution (5%) this means total contributions are fully AE compliant from day one.
Rosemary Lemon, Head of Remuneration at Legal & General Group said “This is a fantastic response from new joiners and shows that our stakeholder employee pension is highly regarded by our employees.
It is particularly pleasing that so many opted for our default 2% contribution level, taking advantage of our employer contribution from outset.
As one of the leading workplace saving providers in the UK, the provision of good quality pensions for our customers is a prime focus. But it is equally as important that we uphold the highest standards for our own staff as well.”
Rob Durbin, Pensions Technical Manager who managed the project said “While we recognised that our staff pension was already highly favoured by employees we wanted to achieve a good response from our Staging Date to capture members of staff who had not yet joined our scheme.
To achieve this we introduced a higher default employee contribution than the Govt. minimum, which Legal & General would match.
We also put a great deal of effort into the staff communications, with first letters going out to staff as early as October last year.
This has proved very effective with those staff who had not yet become members of our company pension.”
Legal & General employs over 6,700 people in the UK and its auto enrolment Staging Date was 1 April.
Employer contributions in the Group Stakeholder scheme range between 5% and 15% of basic salary depending of the level of employee contributions.
Notes to editors
Last year Legal & General achieved the Pensions Quality Mark (PQM) for its Defined Contribution (DC) staff pension scheme.
PQM is the standard given to good-quality DC pension schemes that are well run by employers, whose contribution rates are good, and which are clearly communicated to members of staff.
Workplace Savings was named Corporate Platform/Wrap Provider of the Year by the UK Pensions Awards (June 2013) and Auto Enrolment Provider of the Year in the Pensions and Investment Provider Awards (2013).
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
Legal & General Group plc:
Established in 1836, Legal & General is a leading provider of pension, annuities, and savings products in the UK. The Group has 7 million retail customers in the UK for life assurance, pensions, investments and general insurance plans. We are responsible for investing £406bn worldwide on behalf of investors, policyholders and shareholders (as at 30 June 2013).
For more information please contact:
About Legal & General
Legal & General Assurance Society Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 166055.