Marks and Spencer 2004 Annual Report Download - page 25

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a) Pension Benefits continued
2The pension for Roger Holmes is based on a uniform accrual of two-thirds of the pension earnings ‘cap’ less the pension which he has accrued from
membership of previous employers’ pension schemes. The pension for Justin King is based on his deferred pension at his date of retirement of
28 March 2004.
3In accordance with the Listings Rules, the additional pension earned in the year in excess of inflation and the transfer value relates only to the period
since Maurice Helfgott’s appointment to the Board. All other figures relate to the 12-month period.
4The pension shown for David Norgrove is before commutation and is inclusive of an augmentation of one additional year of service as part of his
termination package which is shown in the emoluments table. It excludes his AVC pension. He chose not to receive his termination payment (as shown
in the emoluments table) in cash, but requested the Company to pay an identical sum into the Pension Scheme in order to enhance his pension.
The accrued entitlement represents the deferred pension to which the director would have been entitled had they left the
Company on 29 March 2003 and 3 April 2004 respectively. Under the Listings Rules, the additional pension earned relates
to the increase in the deferred pension during the year gross and net of inflation respectively.
The transfer value of the deferred pension calculated as at 3 April 2004 is based on factors supplied by the actuary of the
relevant Company pension scheme in accordance with actuarial guidance note GN11. The equivalent transfer value
calculated as at 29 March 2003 is on the assumption that the director had left service at that date.
Inflation has been assumed to be equivalent to the actual rate of price inflation which was 2.8% for the year to 30 September
2003. The measurement date accords with the Listing Rules.
The transfer values are the lump sums which could have been paid to another pension scheme for the benefit of the director.
It is not possible for a transfer value to be paid directly to the director personally.
Luc Vandevelde and Vittorio Radice do not participate in the Company Pension Scheme.
b) Payments made to former directors
Details of payments made to former directors during the year are:
2004 2003
Early retirement pensions1(payable until) £000 £000
James Benfield (22 April 2009) 74 71
Lord Stone of Blackheath (7 September 2002) –47
Derek Hayes (19 November 2008) 69 66
Chris Littmoden (28 September 2003) 44 89
Keith Oates (3 July 2002) –59
Unfunded pensions
Clinton Silver293 89
Other
Robert Colvill3–19
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 pension scheme entitlement for Clinton Silver is supplemented by an additional, unfunded pension paid by the Company.
3Robert Colvill continued to receive a fee as non-executive chairman of Marks & Spencer Financial Services until 31 August 2002.
Approved by the Board
24 May 2004
Dame Stella Rimington DCB, Chairman of the Remuneration Committee