Marks and Spencer 2000 Annual Report Download - page 13

4 Directors’ pension information
Pension scheme
The executive directors, management and employees all participate in the Company’s Pension Scheme. The Scheme is non-contributory,
fully funded and the subject of an Independent Trust. The normal retirement age under the Pension Scheme for senior management is 60
to harmonise with the Company contractual retirement age. For all other employees the normal retirement date is aged 65 (previously
60) but for those employees who joined the Scheme prior to 1 January 1996 their accrued rights were not affected by the change of
normal retirement date.
The Pension Scheme enables members to achieve the maximum pension of two-thirds of their salary in the twelve months ending
at normal retirement age after 30 years’ service. For employees (including senior management) who joined the Scheme prior to
1 January 1996 no actuarial reduction is applied to pensions payable from the age of 58. Employees who joined the Scheme on
or after 1 January 1996 are subject to an actuarial reduction in their pension if payment starts prior to their normal retirement age.
In the case of earnings over £100,000 per annum, the pensionable salary is based on an average of the earnings over the last
three years to retirement.
Pension commutation to enable participants to receive a lump sum on retirement is permitted within Inland Revenue limits.
For death before retirement, a capital sum equal to four times salary is payable, together with a partner’s pension of two-thirds
of the member’s prospective pension at the age of 65 (60 for senior management). For death in retirement, a spouse’s pension is
paid equal to two-thirds of the member’s current pension. In the event of death after leaving service but prior to commencement
of pension, a spouse’s pension of two-thirds of the accrued preserved pension is payable. In all circumstances, children’s allowances
are also payable, usually up to the age of 16. Substantial protection is also offered in the event of serious ill health.
Post-retirement pension increases for pension earned before 6 April 1997 are purely discretionary, but the practice has been to
award annual increases in line with inflation.
YEARS OF INCREASE IN INCREASE IN
SERVICE AT TRANSFER VALUE PENSION EARNED
31 MARCH IN EXCESS OF IN EXCESS OF
AGE AT 2000 INFLATION(1) DURING INFLATION(1) DURING ACCRUED ENTITLEMENT AT YEAR END
31 MARCH OR DATE OF THE YEAR ENDED THE YEAR ENDED 31 MARCH 31 MARCH
2000 RETIREMENT 31 MARCH 2000 31 MARCH 2000 2000(2) 1999
£000 £000 £000 £000
Luc Vandevelde(3) 49–––––
Peter Salsbury 50 29 943 62 292 227
Roger Aldridge 53 26 365 23 162 137
Robert Colvill 59 15 381 20 109 89
Clara Freeman 47 25 296 21 120 97
Guy McCracken 51 24 335 22 207 183
Alan McWalter(4) 46 n/a 9 1 1n/a
Barry Morris 52 29 178 11 82 69
Joe Rowe 52 25 380 24 148 123
Retired directors
James Benfield 50 29 717(7) (23)(8) 116 138
Lord Stone of Blackheath 57 32 1,267(7) 34 265 230
Sir Richard Greenbury(5) 63 45 n/a n/a 482 465
Derek Hayes 51 29 599(7) (28)(8) 107 135
Chris Littmoden 56 25 1,821(6) 76 140 64
John Sacher 59 31 138(7) 10 176 166
(1) Inflation has been assumed to be equivalent to the actual rate of price inflation which was 1.1% for the year to 30 September
1999. This measurement date accords with The Listing Rules.
11 Annual Report and Financial Statements 2000