Marks and Spencer 1999 Annual Report Download - page 13

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MARKS AN D SPEN CER p.l.c.
3 DIRECTORS’ PEN SION INFORMATION (CO N TIN UED )
Increase in transfer Increase in pension
value in excess of earned in excess
Years of inflation(1) during of inflation(1) during
Age at service at the year ended the year ended Accrued entitlement at year end
31 March 2000 31 March 2000 31 March 2000 31 March 2000 31 March 2000(2) 31 March 1999
£000 £000 £000 £000
Sir Richard Greenbury(3) 63 46 465
P L Salsbur y 50 29 227
PG McCracken 51 24 183
Lord Stone of Blackheath 57 32 230
R Aldridge 53 26 137
JR Benfield 50 29 138
R W C Colvill 59 15 89
Mrs C E M Freeman 47 25 97
BSMorris 52 29 69
JT Rowe 52 25 123
D KH ayes 51 30 135
SJSacher 59 32 166
PP D Smith 59 33 153
JKO ates(4) 57 15 302
(1) Inflation has been assumed to be equivalent to the actual rate of price inflation which was • % for the year to 30 September 1999.This
measurement date accords with the Stock Exchange Listing Rules.
(2) The pension entitlement shown above is that which would be paid on retirement based on service to 31 March 1999, except for J K O ates
who retired on 31 January 1999 and service is calculated to this date.At State Pension Age this will be reduced by a proportion of the
Basic State Pension.
(3) Sir Richard Greenbury has accrued no further benefit in the scheme since taking a lump sum in July 1997.This year’s accrued entitlement
has increased over last year due to two factors (i) the pension, having been deferred has, in line with normal practice, been increased by
a late retirement factor, (ii) a notional increase has been applied in line with the pension increase for all current pensions.
(4) Although J K O ates retired on 31 January 1999, he has yet to elect to commence drawing a pension.Therefore the amounts shown above
are calculated on the assumption that payment of his pension is deferred until aged 60.
(5) The greater part of the actuarial increase in the transfer value in respect of P P D Smith relates to the effect, on the year, of his full pension
being paid immediately following his retirement at 31 March 1999. For the directors retiring on 31 May 1999, a similar effect is likely to be
shown next year should they choose to draw their pension immediately.
(6) C Littmoden is not shown in the above table because he has ceased to accrue benefits in the UK Scheme during his time in N orth America.
His accrued entitlement at the time of his transfer to N orth America was £• .
(7) The pension entitlement shown excludes any additional pension purchased by the member’s Additional Voluntary Contributions.
(ii) Early Retirement Plan
The Board recognises the need to maintain a proper flow of succession to senior management positions. It has therefore decided that although
the Company’s Pension Scheme is administered assuming a normal retirement age of 65 for all staff, senior management should have a contractual
retirement age of 60.To meet the same successional needs, it may be appropriate to ask a member of senior management to retire before the
age of 60.To facilitate the smooth implementation of this process the Company has established an Early Retirement Plan for senior management.
W here such a request is made by the Company the Remuneration Committee may, at its discretion, offer an unfunded Early Retirement Pension,
separate from the Company pension, which will be payable from the date of retirement to age 60.To ensure that early retirement does not confer
an advantage over continued employment the value of the Early Retirement Pension may not exceed the value of the individual’s total net salary
less net Company pension from actual date of retirement to age 60. Each Early Retirement Pension must be approved individually by the
Remuneration Committee.The Early Retirement Pension is fully taxable; it is normally fully commutable at the election of the recipient.
REMUN ERATIO N REPO RT
ANNUAL REPORT AND FIN ANCIAL STATEMENTS 1999