The basics

• Group occupational schemes are company pension schemes set up by employers for employees and run by trustees.
• Legal & General's group occupational scheme is called the Company Pension Scheme.
• These schemes are tax-efficient. Any employer contributions are paid gross. These contributions are normally classed as a business expense, so employers can claim full business tax relief on them. Employer contributions are not classed as a benefit in kind, so National Insurance contributions are not payable in respect of employer contributions.
• Contribution levels are set at outset, usually with both the employer and employee paying contributions.
• We can accept regular employee/employer payments and single contributions. We also accept transfers and intra scheme payments in respect of both non-Protected Rights and Protected Rights benefits. The policy is unable to accept regular payments in respect of contracting out of the State Second Pension.
• All employee contributions to the plan qualify for tax relief providing they, along with contributions paid to any other Registered Pension Scheme, are within statutory limits.
• The employer collects employee contributions using the 'Net Pay Arrangement' system. This allows member's contributions to be deducted from gross pay before the tax payable is worked out. Therefore, the correct tax relief is given automatically as the contributions are paid.
• The maximum amount a member can contribute to all Registered Pension Schemes of which they are a member and receive full tax relief on, is 100 percent of their annual earnings.
• However, further restrictions may apply under the scheme rules. It's the trustees' responsibility to ensure that contributions to the Company Pension Scheme do not exceed such restrictions.
• If total contributions to all the Registered Pension Schemes of a member, including any paid by the employer, exceed what is called the Annual Allowance in any single tax year then a 40 per cent tax charge will apply on the excess.
• For the 2007/2008 tax year, the Annual Allowance has been set at £225,000. It will increase in stages to £255,000 for the tax year 2010/2011 and will be reviewed on an ongoing basis after that. This limit will not apply in the actual tax year retirement benefits are taken.
• We offer an extensive choice of investment funds.
• Each scheme member has their own separate account, which means they can monitor the value of their fund.
• Trustees can run their schemes online. They can also give scheme members permission to manage their funds online.
• Members cannot cash in their Company Pension Scheme plans and those who leave and join a new employer usually have to stop paying into the scheme. However, a member can transfer the value of their pension into another Registered Pension Scheme.

The value of the units which make up a fund can go down as well as up, so the value of a member's fund is not guaranteed. It is particularly important to remember this if a member is close to retirement. Please remember that the money is tied up until a member takes their retirement benefits. Please view the other risk factors associated with this product.