Marks and Spencer 2001 Annual Report Download - page 13

4 Directors’ pension information (continued)
Post-retirement increases for pension earned from 6 April 1997 are awarded on a statutory basis. For pension earned prior to 6 April
1997 it was the Company’s practice to award discretionary increases, usually in line with inflation. With effect from 26 July 2000, it was
agreed that, in future, all pension earned for service prior to 6 April 1997 would be guaranteed to increase by the rise in inflation, up to
a maximum of 3% per annum. Increases beyond this figure will continue to be reviewed on a discretionary basis.
Increase in Increase in
Years of transfer value pension earned
service at in excess of in excess of Accrued Accrued
31 March inflation1inflation1entitlement entitlement
Age at 2001 during the during the at at
31 March or date of year ended year ended 31 March 31 March
2001 retirement 31 March 2001 31 March 2001 200122000
£000 £000 £000 £000
Luc Vandevelde350–––––
Robert Colvill 60 16 480 25 140 109
Roger Holmes441 n/a 8 1 1n/a
Alan McWalter447 1 23 2 31
David Norgrove753 13 360 25 71 n/a
Retired directors
Clara Freeman 48 25 (3) – 122 120
Guy McCracken552 25 2,047 3 213 207
Peter Salsbury5,6 51 30 2,519 (27) 270 292
Roger Aldridge5,6 54 27 1,129 (2) 162 162
Barry Morris853 30 36 2 85 82
Joe Rowe553 25 1,398 10 160 148
1Inflation has been assumed to be equivalent to the actual rate of price inflation which was 3.3% for the year to 30 September 2000. This measurement date
accords with the Listing Rules.
2The pension entitlement shown above is that which would be paid on retirement based on service to 31 March 2001 or date of retirement if earlier.
3Luc Vandevelde does not participate in the Company Pension Scheme (see section 1, footnote 10).
4Roger Holmes and Alan McWalter joined the scheme on 1 January 2001 and 1 January 2000 respectively. They are both, therefore, subject to the pension
earnings ‘cap’ (£91,800 at 31 March 2001) which is reviewed annually by the Government. Their pensions are based on a uniform accrual of two-thirds of that
‘cap’ less the pension which they have accrued from membership of previous employers’ pension schemes (see section 1, footnote 9).
5The greater part of the actuarial increase in transfer value in respect of these directors relates to the effect, on the year, of their full pension being paid
immediately (following retirement) and/or the contractual requirement for their pension to be calculated as though their service had ceased one year later
than their actual retirement date.
6The accrued entitlement for Roger Aldridge has not increased and for Peter Salsbury has fallen during the year. This reflects the fact that the reduction factor
due to their early retirement offsets any increase in pension for service completed during the year.
7Pension figures are from 18 September 2000 when David Norgrove was appointed director.
8Pension figures are to 19 July 2000 when Barry Morris ceased to be a director.
9The pension entitlement shown excludes any additional pension purchased by the member’s Additional Voluntary Contributions and also the enhancements
made by Guy McCracken and Joe Rowe detailed in section 3, footnote 3 of this report.
5 Payments to former directors
Details of payments made under the Early Retirement Plan and other payments made to former directors during the year are:
Paid in Paid in
Date of year 2000
retirement Payable until £000 £000
Early retirement pensions1
James Benfield 31 December 1999 22 April 2009 68 17
Lord Stone of Blackheath 31 December 1999 7 September 2002 91 23
Derek Hayes 31 May 1999 19 November 2008 63 52
Chris Littmoden 31 May 1999 28 September 2003 85 70
Paul Smith 31 March 1999 20 December 2000 49 65
Keith Oates231 January 1999 3 July 2002 170 197
Unfunded pensions3
Lord Sieff of Brimpton430 September 1985 Death 61 65
Clinton Silver 31 July 1994 Death 86 84
1Under the Early Retirement Plan the Remuneration Committee could, at its discretion, offer an unfunded Early Retirement Pension, separate from the
Company pension, which was payable from the date of retirement to age 60. With effect from 31 March 2000, the Early Retirement Plan was withdrawn but
payments continue for awards made before this date.
2The payment to Keith Oates for the year 2000 covered 14 months from the date of his retirement to 31 March 2000.
3The pension scheme entitlement for Lord Sieff and Clinton Silver is supplemented by an additional, unfunded pension paid by the Company.
4Payments to Lord Sieff ceased following his death on 23 February 2001.
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