Marks and Spencer 2006 Annual Report Download - page 50

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48 Marks and Spencer Group plc
Remuneration report continued
3 Directors’ pension information
a) Pension Benefits
The Directors’ Remuneration Report Regulations 2002 require disclosure of defined benefit pension arrangements on a different
basis to that specified in the Listing Rules. Details of pension benefits earned by the executive directors during the year ended
1 April 2006 are shown below on both bases. Transfer
value of
additional
Additional pension Increase in
pension in excess Transfer Transfer transfer
Accrued Additional earned in of inflation Accrued Age value of value of value
entitlement pension the year (net of entitlement at 1 April pension pension (net of
at 2 April earned in in excess director’s at 1 April 2006 at 2 April at 1 April director’s
2005 the year of inflation contribution) 2006 or date of 2005 2006 contribution)
£000 £000 £000 £000 £000 leaving £000 £000 £000
Alison Reed 182 15 15 136 197 49 1,697 1,930 233
The accrued entitlement at 2 April 2005 represents the deferred pension at age 60 to which the director would have been entitled
had they left the Company on 2 April 2005. The accrued entitlement at 1 April 2006 or date of leaving represents the deferred
pension at age 60 based upon the actual leaving date of 30 April 2005. The additional pension relates to the increase in the deferred
pension during the year gross and net of inflation under the Directors’ Remuneration Report Regulations 2002, and the Listing Rules
respectively.
The transfer value of the deferred pension calculated as at 1 April 2006, or date of leaving, has been calculated at the actual leaving
date of 30 April 2005 and 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 2 April 2005 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 2.7% for the year to 30 September 2005.
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.
Stuart Rose, Ian Dyson and Steven Sharp do not participate in the Company Pension Scheme.
b) Payments to former directors
Details of payments made to former directors during the year are:
2006 2005
Early retirement pensions1(payable until) £000 £000
James Benfield (22 April 2009) 77 75
Derek Hayes (19 November 2008) 72 70
Unfunded pensions
Clinton Silver297 94
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.
Approved by the Board
Jack Keenan, Chairman of the Remuneration Committee
London
26 May 2006