HSBC 2009 Annual Report Download - page 348

HSBC HOLDINGS PLC
Directors’ Remuneration Report (continued)
Pensions / Share plans
346
Pensions
(Audited)
V H C Cheng is a member of the Hong Kong Special
Administrative Region Mandatory Provident Fund
(‘MPF’) and received an executive allowance of
25 per cent of annual basic salary during 2009, less
the mandatory contributions to the MPF by both the
employer and employee, to fund personal pension
arrangements (HK$2,313,000). During 2009, the
mandatory employer contribution to the MPF in
respect of Mr Cheng was HK$12,000.
D J Flint received an executive allowance
during 2009 of 55 per cent of annual basic salary to
fund personal pension arrangements (£385,000).
From 1 February 2010 this executive allowance will
be 50 per cent of annual basic salary.
A A Flockhart received employer contributions
during 2009 of 40 per cent of annual basic salary into a
personal pension plan (HK$3,200,000). From
1 February 2010 employer contributions will be
equivalent to 50 per cent of annual basic salary.
M F Geoghegan received an executive
allowance during 2009 of 50 per cent of annual
basic salary to fund personal pension arrangements
(£535,000). No employer contribution was made to
the HSBC Asia Holdings Pension Plan in 2009. (In
2008, an employer contribution of £225,000 was
made arising entirely from a bonus sacrifice in
respect of 2007.)
S K Green ceased membership of the HSBC Bank
(UK) Pension Scheme on 5 April 2006. Since 6 April
2006, Mr Green has been entitled to receive benefits
from an Employer Funded Retirement Benefits Scheme
which together with entitlements from the HSBC Bank
(UK) Pension Scheme will provide benefits to
Mr Green that will be broadly comparable to an accrual
rate of one-thirtieth of pensionable salary for each year
of pensionable service.
S T Gulliver received employer contributions
during 2009 of 30 per cent of annual basic salary
into a personal pension plan (£240,000). From
1 February 2010 employer contributions will be
equivalent to 50 per cent of annual basic salary.
Defined Benefit Pension Arrangements
Accrued
annual
pension at
31 December
2009
Increase in
accrued
pension
during
2009
Increase in
accrued
pension
during 2009,
excluding
any increase
for inflation
Transfer
value
of accrued
pension at
31 December
20081
Transfer
value
of accrued
pension at
31 December
20091
Increase of
transfer value
of accrued
pension (less
personal
contributions)
in 20091
Transfer value
(less personal
contributions) at
31 December 2009
relating to increase
in accrued pensions
during 2009,
excluding any
increase for inflation1
£000 £000 £000 £000
£000 £000 £000
A A Flockhart2 . 270 163 6 4,644 4,863 219 100
S K Green ......... 711 424 42 17,716 19,119 1,403 1,121
S T Gulliver5 ..... – 83 2 2,749 – 125 –
1 The transfer value represents a liability of HSBC’s pension funds and not a sum paid or due to the individual; it cannot therefore
meaningfully be added to annual remuneration.
2 A A Flockhart ceased accrual of pension benefits in the International Staff Retirement Benefits Scheme (‘ISRBS’) on 30 November 2008
and he has deferred commencement of his pension. The ISRBS retains a liability for a contingent spouse’s pension of £131,655 per
annum as at 31 December 2009.
3 A A Flockhart and S T Gulliver received increases for inflation to their accrued pensions on 1 January 2009 of 4.2 per cent, based on
the increase in the UK Retail Prices Index over the year to 31 October 2008.
4 S K Green’s total accrued pension received no increase in respect of inflation in 2009. The part of S K Green’s pension payable from the
HSBC Bank (UK) Pension Scheme receives an annual increase in line with the UK Government’s statutory revaluation order for 2009,
which is based on the increase in the UK Retail Prices Index over the last year to 30 September 2009. As this was negative, no increase
was applied. The additional accrual of benefits is provided by the Employer Funded Retirement Benefits Scheme.
5 S T Gulliver ceased accrual of pension benefits in the ISRBS on 31 March 2006 and at that time deferred commencement of his pension.
S T Gulliver commuted all his benefits out of the ISRBS on 31 May 2009 except for a contingent spouse’s pension. A commutation lump
sum of £2,743,437 was paid to S T Gulliver in lieu of his entire pension. The ISRBS retains a contingent spouse’s liability pension of
£63,563 per annum as at 31 December 2009. After 31 May 2009, S T Gulliver stopped accruing pension benefits, and as such he is no
longer eligible to take transfers from the Scheme in respect of any spouse’s liability.
The following table shows unfunded pension
payments, in respect of which provision has been
made, during 2009 to five former Directors of HSBC
Holdings plc.
2009
£
2008
£
B H Asher ................................... 101,858 97,752
C F W de Croisset ...................... 247,115 221,100
R Delbridge ................................ 146,507 140,601
Sir Brian Pearse .......................... 61,095 58,632
Sir William Purves ..................... 107,827 103,481
664,402 621,566