Barclays 2003 Annual Report Download - page 30

Corporate Governance
Barclays Report on Remuneration
28
Executive Directors’ annual pension accrued assuming retirement at contractual age(e)(f )
Pension Transfer Transfer
accrued value of value of
Accrued during Accrued accrued accrued Increase in Other
Age pension 2003 pension pension pension transfer contribu-
at 31st at 31st (including at 31st at 31st at 31st value tions
December Years December increase for December December December during made in
2003 of service 2002 inflation) 2003 2002 2003 the year 2003
£000 £000(a) £000 £000 £000 £000 £000
Executive
MW Barrett(b) 59 4 ––––––990
CJ Lendrum(c) 56 34 238 19 257 3,415 4,069 654 –
JS Varley(c) 47 21 167 14 181 1,693 2,177 484 –
Former Director
JM Stewart(d) 54 26 245 9 254 3,218 3,845 627 –
Notes
(a) Pension accrued during the year represents the increase in accrued pension (including inflation at the prescribed rate of 2.8%) which occurred
during the entire year. All pensions are reviewed annually, with a guaranteed increase in line with retail price inflation, up to a maximum of 5%.
(b) Matthew Barrett is not a member of the Group’s main pension schemes. A notional fund is accruing on his behalf outside the pension scheme.
In the event of Mr Barrett’s death before retirement, a capital sum of up to four times salary would be payable.
(c) The Group has a closed non-contributory pension scheme, which provides that, in the case of death before retirement, a capital sum of up to four
times salary is payable together with a spouse’s pension of approximately 50% of the member’s prospective pension at retirement. For death in
retirement, a spouse’s pension of approximately 50% of the member’s pre-commutation pension is payable. If a member, granted a deferred
pension, dies before their pension becomes payable, their widow/widower will immediately be paid a pension of 50% of their deferred pension. In
all circumstances, children’s allowances are payable, usually up to the age of 18. Enhanced benefits are payable if a member is unable to continue
to work as a result of serious ill health. Chris Lendrum and John Varley are members of the closed non-contributory pension scheme and are
entitled to enhanced benefits that will give them two-thirds of their pensionable salary at age 60.
(d) John Stewart ceased to be a Director with effect from 27th February 2003. After ceasing to be a Director, he remained an employee of Barclays
until 7th August 2003. He was entitled to a pension of two-thirds of pensionable salary if he served to age 60. He retired early on 7th August
2003 and his accrued pension benefit, detailed in the table above, based on actual service, became a pension in payment from 8th August 2003.
The pension in payment is reviewed annually in line with retail price inflation, subject to a minimum of 3% and a maximum of 5%.
(e) The accrued pension amounts at the end of the year for Mr Lendrum and Mr Varley are the values if the Director left service on that date.
(f) The transfer values have been calculated in a manner consistent with ‘Retirement Benefit Schemes – Transfer Values (GNII)’ published by the
Institute of Actuaries and the Faculty of Actuaries.