BT 2012 Annual Report Download - page 91

88 Governance
Ian Livingston is not a member of any of the company pension schemes, but the company has agreed to pay an annual amount equal to 30% of his
salary towards pension provision. The company paid £50,000 into his personal pension plan, plus a cash payment of £219,999 representing the
balance of the pension allowance for 2012. BT also provides him with a death in service lump sum benefit of four times his salary.
Tony Chanmugam is a member of the BTPS but has opted out of future pensionable service accrual. The company pays him an annual allowance
equal to 30% of salary towards pension provision. A cash payment of £158,625 was made for him in 2012. BT also provides him with a death in
service lump sum benefit of four times his salary.
Gavin Patterson receives an annual allowance equal to 30% of salary towards pension provision. Of this amount, £50,000 was paid as an employer
contribution into the BTRSS and the balance of £118,752 was paid as a cash payment for the 2012 financial year. BT also provides him with a death
in service lump sum benefit of four times his salary plus a widow’s pension of 30% of his capped salary.
The table below shows the increase in the accrued benefits, including those referred to above, to which each director who is a member of the BTPS
has become entitled during the year, and the transfer value of the increase in accrued benefits.
Increases in pension benefits at 31 March 2012
Accrued pension Transfer value of accrued benefits
Change in
transfer value
c-d less director’s
contributions
Additional accrued
benefits earned in
the year
Transfer value of
accrued benefits
in e less director’s
contributions
2012 2011 2012 2011 2012 2012 2012
£000a£000b£000c£000d£000 £000e£000f
T Chanmugamg202 191 4,650 4,197 453 4 73
a-d As required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
a-b The values represent the deferred pension to which he would have been entitled had he left the company on 31 March 2012 and 2011, respectively.
c Transfer value of the deferred pension in column (a) as at 31 March 2012 calculated on the basis of actuarial advice in accordance with relevant legislation. The transfer value represents a liability of the BTPS
rather than any remuneration due to the individual, and cannot be meaningfully aggregated with annual remuneration, as it is not money the individual is entitled to receive.
d The equivalent transfer value but calculated as at 31 March 2011 on the assumption that the director left the company on that date.
e The increase in pension built up during the year, net of inflation. The gross amount can be calculated by deducting the amount under column (b) from the amount under column (a).
f The transfer value of the pension in column (e), less directors’ contributions.
g Tony Chanmugam’s contributions in 2012 were £nil (2011: £nil).
Former directors
Sir Peter Bonfield received under pre-existing arrangements, a pension of £423,125 in 2012 (2011: £403,745).
Baroness Jay retired as a non-executive director on 13 January 2008 but continues as a member of the
Committee for Sustainable and Responsible
Business
for which she receives an annual fee of £6,500.
Loans
There are no outstanding loans granted by any member of the BT Group to any of the directors, or guarantees provided by any member of the BT
Group for their benefit.
Rt Hon Patricia Hewitt
Chair of the Remuneration Committee
9 May 2012
Reports of the Board Committees
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information