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Sir
Christopher Bland is not a member of any of the company
pension schemes, but the company matches his contributions,
up to 10% of the earnings cap, to a personal pension
plan. Company contributions of £9,720 were payable
in respect of the 2003 financial year. The earnings
cap is a restriction on the amount of pay which can
be used to calculate contributions and benefits due
to a tax approved pension scheme.
Ben
Verwaayen is not a member of any of the company pension
schemes, but the company has agreed to pay an amount
equal to 20% of his salary towards pension provision.
The company paid £24,300 into his personal pension
plan plus £140,007 as a cash payment. This amount,
which is included in the table under
Directors' Remuneration, represents £110,840
being part of the pension allowance for the 2003 financial
year, plus £29,167 which was outstanding from
the previous financial year. The balance of the 2003
pension allowance of £4,860 has been carried forward
to the 2004 financial year. BT also provides him with
a lump sum death in service benefit of four times his
salary.
Ian
Livingston is not a member of any of the company pension
schemes, but the company has agreed to pay an amount
equal to 30% of his salary towards pension provision.
The company paid £19,440 into his personal pension
plan plus a cash payment of £115,560 representing
the balance of the pension allowance for the 2003 financial
year, which is included in the table under
Directors' Remuneration. BT also provides him with
a lump sum death in service benefit of four times his
salary.
Pierre
Danon’s pension accrues at the rate of one-thirtieth
of his final salary for each year of service. In addition,
a two-thirds widow’s pension would be payable on
his death. He is a member of the BT Pension Scheme,
but as he is subject to the earnings cap the company
has agreed to increase his benefits to the target level
by means of a non-approved, unfunded arrangement.
Andy
Green is a member of the BT Pension Scheme. From 31
December 1997 the company has been purchasing an additional
203 days of pensionable service each year to bring his
pensionable service at age 60 up to 40 years. A two-thirds
widow’s pension would be payable on his death.
Paul
Reynolds is a member of the BT Pension Scheme. From
1 July 1996 the company has been purchasing an additional
109 days of pensionable service each year to bring his
pensionable service at age 60 up to 40 years. A two-thirds
widow’s pension would be payable on his death.
Sir
Iain Vallance was part time Chairman and subsequently
President Emeritus. His deferred pension under the BT
Pension Scheme came into payment with effect from 1
April 2003, although as the pension is paid monthly
in arrears the first payment was not made until 30 April
2003. During the year he received a pension payable
by the company of £361,580. The pension payable
by the company will be reduced in the 2004 financial
year by the equivalent amount of pension he will receive
from the BT Pension Scheme. A two-thirds widow’s
pension would be payable on his death.
Philip
Hampton left the company on 30 April 2002. His pension
accrued at the rate of one-thirtieth of his final salary
for each year of service. In addition, a two-thirds
widow’s pension would have been payable on his
death. He was a member of the BT Pension Scheme, but
as he was subject to the earnings cap, the company agreed
to increase his benefits to the target level by means
of a non-approved, unfunded arrangement. On leaving
the company his deferred pension was increased to the
level it would have been had he completed two years’
service.
The
table below shows the increase in the accrued benefits,
including those referred to above, to which each director
has become entitled during the year and the transfer
value of the increase in accrued benefit:
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Transfer
value of
increase in accrued
benefits
less directors’
contributions
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Change
in transfer
value
c-d less
directors’ contributions
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Additional
accrued
benefits
earned
in the
year
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Transfer
value of
accrued
benefits
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Accrued
pension
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2003
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2002
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2003
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2002
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2003
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2003
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2003
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£000
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a
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£000
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b
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£000
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c
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£000
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d
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£000
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£000
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e
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£000
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f
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| P
Danon |
37 |
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20 |
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286 |
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212 |
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59 |
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17 |
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113 |
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| A
Green |
109 |
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99 |
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1,103 |
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1,420 |
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(343 |
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7 |
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42 |
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| P
Reynolds |
110 |
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87 |
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1,014 |
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1,141 |
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(151 |
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20 |
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158 |
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| P
R Hamptong |
29 |
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29 |
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250 |
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347 |
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(97 |
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| a-d
As required by the Companies Act 1985
Schedule 7A. |
| a-b
These amounts represent the deferred pension
to which the directors would have been entitled
had they left the company on 31 March 2002 and 2003,
respectively. |
c
Transfer value of the deferred pension
in column (a) as at 31 March 2003 calculated on
the basis of actuarial advice in accordance with
Actuarial Guidance
Note GN11 and excludes directors’ contributions.
The transfer value represents a liability of the
company rather than any remuneration due to the
individual and cannot be meaningfully aggregated
with annual remuneration, as it is not money the
individual is entitled to receive. |
| d
The equivalent transfer value but calculated
as at 31 March 2002 on the assumption that the director
left service at that date. |
| e
The increase in pension built up during
the year, net of inflation. |
| f
The transfer value of the pension in column
(e), less directors’ contributions. |
| g
As explained above, Philip Hampton’s
pension benefit was increased on leaving the company.
The entitlement shown above is after taking account
of this increase, which was allowed for in last
year’s accounts. |
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