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Directors' Pension Entitlements
Historically, bonuses normally formed a relatively
small part of overall remuneration, and in certain
cases, it has been established Company policy to
include bonuses within the definition of pensionable
remuneration. Bonuses payable remained a part
of pensionable remuneration of two directors,
Mr. J. W. Peace and Mr. P. L. Weigh, who were in
office at 31 March 1999. However, benefits derived
from executive share option schemes and long term
incentive plans are not pensionable. Company
contributions to the UK Pension Scheme
re-commenced with effect from 1 January 1999,
thereby bringing to an end the contributions
holiday of recent years. This decision was taken
in consultation with the Scheme's actuaries.
Lord Wolfson of Sunningdale has a deferred
pension in respect of a prior period of employment
by the Group which will be recognised in
calculating his pension on retirement after vesting
over a three year period. He will receive from the
Pension Scheme the maximum pension which the
Trustees are able to pay, having regard to Inland
Revenue limits, with the balance of the entitlement
to be provided from the Company's own resources
on an unfunded basis. During the year an amount
of £448,000 was charged against profit to provide
for this unfunded arrangement.
Other executive directors affected by the pensions
cap have available to them a Funded Unapproved
Retirement Benefit Scheme ('FURBS') designed to
provide pension benefits in excess of the Inland
Revenue cap and place them in broadly the same
position as directors whose pension is unaffected
by this cap. Alternatively, there is the choice of an
unfunded commitment on the part of the Company
to provide benefits in excess of the cap.
A FURBS has been provided for Mr. D. A. Tyler,
the cost of which in the year to 31 March 1999
was £83,000.
Mr. D. G. Bury has an unfunded commitment from
the Company that it will provide pension benefits
in excess of the pensions cap. During the year an
amount of £51,000 was charged against profit in
order to provide for this unfunded arrangement.
Mr. V. J. Barnett has an unfunded pension
arrangement for which provision has been made
in the financial statements. During the year an
amount of £79,000 was charged against profit in
order to provide for this unfunded arrangement.
Mr. A. J. Smart is a member of the pension
scheme operated by the Company's South African
subsidiary. Contributions to this scheme on his
behalf in the year under review amounted to
£12,000. He also enjoys membership of the
UK Scheme by reference to that part of his
remuneration which relates to services performed
in the UK.
Mr. T. Duddy is a member of the Argos Pension
Scheme which will provide him on retirement at
age 60 with a pension of up to two thirds of the
pensions cap subject to other Inland Revenue
limits. In addition, his contract provides for the
choice of a funded or unfunded scheme to provide
benefits in excess of the pensions cap. During the year
an amount of £28,000 was charged against profit in order
to provide for this arrangement.
The disclosure of directors' pension entitlements in the
following table, covering benefits provided through
tax exempt pension schemes and unfunded arrangements,
complies with the rule of The London Stock Exchange
which reflect recommendations made by the Institute
and Faculty of Actuaries.
Accrued Pension Details The accrued pension at 31 March 1999 represents the
amount of pension to which the director would have been entitled, had he left
the group at that date. The actuarial value of the increase in accrued pension is calculated
as the amount of cash required to secure that increase in accrued pension. The transfer value represents a liabilty of the pension
provider, not a sum paid or due to the individual.
Four former directors receive, from the Company, pensions
additional to those provided by the UK Pension Scheme. The total paid under these
arrangements was £151,000, the future cost of which is fully provided for in the
financial statements on the basis of independent actuarial advice.
Directors' Interests
On behalf of the Board |
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