Remuneration report
Table G: Directors’ post-retirement benefits
Table G
Post-retirement benefits
| Age | NRA* | Accrued pension at 31 December 20071 £ per annum | Increase/ (decrease) in accrued benefits £ per annum | Change in accrued pension after allowing for inflation £ per annum | Transfer value at 1 January 20072 £ | Transfer value at 31 December 2007 £ | Director’s contributions £ | Increase in transfer value less director’s contributions £ | |
|---|---|---|---|---|---|---|---|---|---|
| C V Geoghegan3 | 53 | 60 | 267,458 | 20,525 | 11,573 | 3,381,361 | 3,495,623 | – | 114,262 |
| W P Havenstein 4 | 59 | 60 | 75,905 | 19,073 | 18,350 | 590,700 | 791,208 | 3,375 | 197,133 |
| I G King | 51 | 62 | 373,388 | 40,934 | 28,882 | 2,736,838 | 3,075,417 | 46,230 | 292,349 |
| S L Mogford 5 | 51 | 60 | 184,155 | (51,408) | (59,948) | 2,813,722 | 3,165,154 | 16,258 | 335,174 |
| G W Rose 6 | 55 | 60 | 295,575 | 32,590 | 23,056 | 3,944,663 | 4,326,358 | 51,857 | 329,838 |
| M J Turner 7 | 59 | 60 | 659,544 | 85,138 | 64,315 | 10,546,221 | 11,637,570 | – | 1,091,349 |
* Normal Retirement Age
1 Accrued pensions may be reduced if they are taken before the normal retirement age of the scheme. In addition, a longevity adjustment factor applies to UK pension accrued after 5 April 2006.
2 Transfer values have been calculated in accordance with GN11 issued by the actuarial profession. For UK-based directors the assumptions are the same as those used in the calculation of cash equivalents from the schemes. For US-based directors the assumptions are the same as those used for accounting disclosures. The amount of the increase in transfer value arising from the change in assumptions is: Chris Geoghegan (£224,755); Walt Havenstein (£35,712); Ian King (£218,519); Steve Mogford (£132,759); George Rose (£271,274); Mike Turner (£693,464).
3 As a result of the changes to taxation of pensions introduced in April 2006, Chris Geoghegan elected to opt out of the pension scheme and since April 2006 has been receiving a taxable salary supplement of 30% of his base salary. The pension shown above is the accrued pension at 31 December 2007. Chris Geoghegan retired from the Board on 31 December 2007 and started to draw his pension with effect from 1 January 2008. His accrued pension was reduced on retirement to £201,814 to allow for early payment. This early retirement pension was increased by £32,102 pa by way of a Company augmentation of £980,000 relating to his payment in lieu of notice and the matching Company payment as referred to on the Executive directors who retired in 2007 page, calculated in accordance with the scheme’s normal augmentation factors.
4 Walt Havenstein’s accrued pension comprises £13,902 from a contributory Qualified Plan and £62,003 from Non-Qualified Plans. In addition, Walt Havenstein participates in a Section 401(k) defined contribution arrangement set up for US employees in which the Company will match employee contributions up to a limit. In 2007 the Company paid contributions of $6,308 (£3,173) into this 401(k) arrangement. In addition, the Company paid $13,427 (£6,754) into a Deferred Compensation arrangement. Walt Havenstein is paid in US dollars. Of the change in the accrued benefit and the transfer value (£1,206) and (£12,574) respectively is due to currency movements.
5 Steve Mogford retired from the Board on 9 May 2007 and started to draw his pension with effect from 1 June 2007. His pension was reduced for early payment. This early retirement
pension was increased by £31,056 pa by way of a Company augmentation of £980,000 relating to his payment in lieu of notice and the matching Company payment as referred to on the Executive directors who retired in 2007 page, calculated in accordance with the scheme’s normal augmentation factors.
6 George Rose has an unapproved retirement arrangement for pensionable service before 5 April 2006 that is partly funded and partly unfunded. No company contributions have been made to these arrangements during the year.
7 As a result of the changes to taxation of pensions introduced in April 2006 Mike Turner elected to opt out of the pension scheme and since April 2006 has been receiving a taxable salary supplement of 30% of his base salary.
Richard Lapthorne, a former director, has an unfunded pension arrangement payable by the Company. In 2007, pension payments made by the Company to him were £93,554 (2006 £90,078).
