The article (Money Marketing, December 19) is worth expanding given our
future position in the executive pension plan market postJanuary 27, 2003.
Legal & General is to revamp its executive pension plan to provide
better value for customers and bring it up to date. The changes, effective
from January 27, will result in:
Improved terms for new regular premium customers with more of the
contributions being invested.
The withdrawal of the current product option for regular premium business
which has low allocation rates in the first two years and supported
previous commission levels.
Reduced commission levels paid to advisers on new regular-premium plans
only, but which are some way above stakeholder commission levels in
recognition of the additional advice required.
It is important to note that these commission changes are only in respect
of new regular-premium business written on or after January 27, 2003. There
are no changes to existing commission levels for any single premiums
(including transfer contributions), nor does it affect commission paid on
any increments to existing regular premium plans set up before January 27,
Finally, it is worth pointing out that IFAs continue to write most of Legal
& General's pension business and we do not believe these changes will
undermine this position.
Director, pensions marketing
Legal & General