Holiday Inn 2007 Annual Report Download - page 46

7 Directors’ pensions
The following information relates to the pension arrangements
provided for Messrs Cosslett, Hartman and Solomons under the
executive section of the InterContinental Hotels UK Pension Plan
(the IC Plan) and the unfunded InterContinental Executive Top-Up
Scheme (ICETUS).
The executive section of the IC Plan is a funded, registered,
final salary, occupational pension scheme. The main features
applicable to the Executive Directors are: a normal pension age
of 60; pension accrual of 1⁄30th of final pensionable salary for each
year of pensionable service; life assurance cover of four times
pensionable salary; pensions payable in the event of ill health;
and spouses’, partners’ and dependants’ pensions on death.
When benefits would otherwise exceed a member’s lifetime
allowance under the post-April 2006 pensions regime, these
benefits are limited in the IC Plan, but the balance is provided
instead by ICETUS.
Richard Hartman, who reached the IC Plan normal pension
age of 60 on 30 January 2006, ceased to be an active member
of the IC Plan and ICETUS with effect from that date, and, up
to his retirement on 25 September 2007, instead participated
in the InterContinental Hotels Group International Savings and
Retirement Plan (IS&RP), which is a Jersey-based defined
contribution plan to which the Company contributes.
Stevan Porter has retirement benefits provided via the 401(k)
Retirement Plan for employees of Six Continents Hotels Inc.
(401(k)) and the Six Continents Hotels Inc. Deferred Compensation
Plan (DCP).
The 401(k) is a tax qualified plan providing benefits on a defined
contribution basis, with the member and the relevant company
both contributing. The DCP is a non-tax qualified plan, providing
benefits on a defined contribution basis, with the member and
the relevant company both contributing.
Directors’ pension benefits
Increase/
(decrease) in
transfer value
over the Increase/ Increase/
Directors’ Transfer value year, less (decrease) (decrease) Accrued
contributions of accrued benefits Directors’ in accrued in accrued pension at
Age at in the year11 Jan 2007 31 Dec 2007 contributions pension2pension331 Dec 20074
Directors 31 Dec 2007 £ £ ££ £ pa £ pa £ pa
Andrew Cosslett 52 34,400 595,300 1,184,200 554,500 27,100 25,300 70,900
Richard Hartman 61 – 1,935,400 1,812,600 (122,800) (19,300) (23,300) 75,4005
Richard Solomons 46 22,000 1,470,500 2,371,600 879,100 24,900 18,700 168,700
The figures shown in the above table relate to the final salary plans only. For defined contribution plans, the contributions made by and
in respect of Stevan Porter during the year are:
Director’s contribution to Company contribution to
DCP 401(k) DCP 401(k)
££ ££
Stevan Porter 105,000 5,600 Stevan Porter 74,700 4,500
The Company contributions made in respect of Richard Hartman to the IS&RP during the year were £159,300. He made no contributions.
By order of the Board
Richard Winter
Company Secretary
18 February 2008
44 IHG Annual Report and Financial Statements 2007
Remuneration report continued
1 Contributions paid in the year by the Directors under the terms of the
plans. Contributions have been 5% of full pensionable salary.
2 The absolute increase or decrease in accrued pension during the year.
3 The increase or decrease in accrued pension during the year, excluding any
increase for inflation, on the basis that increases or decreases to accrued
pensions are applied at 1 October.
4 Accrued pension is that which would be paid annually on retirement at 60,
based on service to 31 December 2007.
5 When Richard Hartman retired on 25 September 2007, his pension was
£97,600 per annum pre-commutation. He took a tax-free cash sum of
£385,400, leaving a residual pension of £75,400 per annum.