Barclays 2006 Annual Report Download - page 138

Barclays PLC
Annual Report 2006
134
Chairman and executive Directors: pension accrued assuming retirement at normal pension age(a)(b)(c)
Pension Transfer Transfer
accrued Pension value of value of
Accrued during accrued Accrued accrued accrued Increase in
pension 2006 during pension pension pension transfer
Age at 31st (including 2006 at 31st at 31st at 31st value
at 31st Completed December increase for (excluding December December December during
December years 2005 inflation) inflation) 2006 2005 2006 the year
2006 of service £000 £000 £000 £000 £000 £000 £000
Chairman
Matthew W Barrett(d) 62 7 – ––––––
Executive Directors
John Varley(e)(f) 50 24 374 44 30 418 6,338 7,696 1,358
Robert E Diamond Jr(g)(h) 55 10 37 (1) (1) 36 207 195 (12)
Gary Hoffman(f) 46 24 198 55 47 253 1,723 2,352 629
Naguib Kheraj(i)(j) 42 9 – ––––––
David Roberts 44 23 190 33 26 223 1,503 1,893 390
Frits Seegers(i) 48 – – ––––––
Corporate governance
Remuneration report
Notes
(a) Pension accrued during the year represents the change in accrued pension (including inflation at the prescribed rate of 3.6%) which occurred during the entire year.
The pensions paid from the final salary section of the applicable pension fund are reviewed annually. Pensions increase by a minimum of the increase in the retail
prices index (up to a maximum of 5%), subject to the scheme rules.
(b) The transfer values have been calculated in a manner consistent with the Retirement Benefit Scheme – Transfer Values (GN11) published by the Institute of Actuaries
and the Faculty of Actuaries.
(c) With the exception of Matthew W Barrett and the benefits provided through the US Restoration Plan for Robert E Diamond Jr, the pension benefits for all Directors
shown above are provided for on a funded basis.
(d) During the year and up until his retirement on 31st December 2006, Matthew W Barrett was not a member of any of the Group’s registered pension arrangements.
Instead a notional fund was accrued on his behalf through an Unfunded Unapproved Retirement Benefits Scheme. No contributions were made to this arrangement in
2006 or since becoming Chairman. In addition, had Mr Barrett died during the year, before leaving employment, a capital lump sum of up to 4 times his base salary
would have been payable.
(e) John Varley is a member of the Group’s closed UK defined benefit pension arrangement. This non-contributory pension scheme has a normal pension age of 60 and in
accordance with his service contract, the scheme provides him with a pension benefit of 66.67% of his Pensionable Salary at normal pension age. Should John Varley
retire at age 55, the scheme provides for an unreduced pension of 60% of Pensionable Salary.
(f) In addition to the transfer value of accrued pension at 31st December 2006, John Varley and Gary Hoffman also have defined contribution benefits. John Varley’s
benefit is in respect of a transfer from a previous pension arrangement while Gary Hoffman’s benefit is in respect of Special Company Contributions (Bonus Sacrifice).
During 2006, Special Company Contributions (Bonus Sacrifice) of £225,000 were paid in respect of Gary Hoffman. The fund value of these arrangements as at
31st December 2006 for John Varley and Gary Hoffman were £662,554 and £623,104 respectively.
(g) The benefits shown above in respect of Robert E Diamond Jr’s participation in the Group’s US non-contributory defined benefit arrangement and the US Restoration
Plan have been converted to Pounds Sterling using the 2006 year-end exchange rate of US$1.96 (2005: US$1.72).
(h) Robert E Diamond Jr is also a member of the Barclays Bank PLC 401K Thrift Savings Plan and Thrift Restoration Plan. These are US defined contribution plans.
Company contributions into these plans in 2006 amounted to £11,414 (US$21,000).
(i) Naguib Kheraj and Frits Seegers do not participate in any of the Group’s pension arrangements. Instead they receive a cash allowance in lieu of pension contributions
of 23% and 25% of their respective base salaries. Naguib Kheraj’s cash allowance in 2006 amounted to £149,500, while Frits Seegers’ cash allowance in 2006 was
£84,028.
(j) In addition to the cash allowance in lieu of pension contributions, Naguib Kheraj has defined contribution benefits in respect of a previous period of participation in the
Retirement Investment Scheme. The fund value of this deferred benefit as at 31st December 2006 was £108,963.