Report on directors' remuneration
Notes contentsTable 2: Directors' pensions and other pension-related items
Directors’ pensions | Age at 31 Dec 09 | Accrued pension at 31 Dec 09 £0001 | Increase in accrued pension over the period £0002 | Transfer value at 31 Dec 08 £0003 | Transfer value at 31 Dec 09 £0004 | Increase in transfer value* over the period £000 | Increase/ (decrease) in accrued pension† over the period £000 | Transfer value* of the increase/ (decrease) in accrued pension† at 31 Dec 09 £000 | Other pension costs to the company over the period £0005 | Other allowances in lieu of pension £0006 | Other pension related benefit costs £0007 |
---|---|---|---|---|---|---|---|---|---|---|---|
Marjorie Scardino | 62 | 4.5 | (0.5) | 47.5 | 44.1 | (3.4) | (0.5) | (4.9) | 623.7 | – | 54.5 |
David Bell (stepped down 1 May 2009) | 63 | 236.0 | (76.7) | 6,045.5 | 5456.4 | (589.1) | (76.7) | (1,773.3) | – | – | – |
Will Ethridge | 57 | 127.0 | (1.2) | 853.7 | 1037.2 | 183.5 | (1.2) | (9.8) | 44.4 | – | 2.1 |
Rona Fairhead | 48 | 32.3 | 5.0 | 294.6 | 466.0 | 165.5 | 5.0 | 66.2 | – | 128.2 | 3.4 |
Robin Freestone | 51 | – | – | – | – | – | – | – | 18.8 | 112.1 | 4.9 |
John Makinson | 55 | 254.8 | 18.4 | 3,532.2 | 4,897.6 | 1,359.4 | 18.4 | 347.8 | – | – | 12.4 |
*Less directors' contributions.
†Net of inflation. An inflation rate of 0% has been used.
Note 1 The accrued pension at 31 December 2009 is that which would become payable from normal retirement age if the member left service at 31 December 2009. For Marjorie Scardino it relates only to the pension from the US Plan. For David Bell this is the pension in payment as at 31 December 2009. For Will Ethridge it relates to his pension from the US Plan and US SERP. For Rona Fairhead it relates to the pension payable from the UK Plan. For John Makinson it relates to the pension from the UK Plan, the FURBS and the UURBS in aggregate.
Note 2 For Marjorie Scardino and Will Ethridge, the increase in accrued pension figure is negative due to movements in exchange rates over the year.
Note 3 For David Bell, this is the value of his pre-commutation pension at his Normal Retirement Date based on market conditions at 31 December 2008.
Note 4 The UK transfer values at 31 December 2009 are calculated using the assumptions for cash equivalents payable from the UK Plan and are based on the accrued pension at that date. For David Bell the transfer value has been calculated as the value of the pension in payment at 31 December 2009. For the US SERP, transfer values are calculated using a discount rate equivalent to current US long-term bond yields. The US Plan is a lump sum plan and the accrued balance is shown.
Note 5 For UK benefits, this column comprises employer contributions to the Money Purchase 2003 section of the Pearson Group Pension Plan. For US benefits, it includes company contributions to funded defined contribution plans and notional contributions to unfunded defined contribution plans.
Note 6 This column comprises cash allowances paid in lieu of pension benefits above the plan earnings cap.
Note 7 This column comprises life cover and long-term disability insurance not covered by the retirement plans.
Note 8 David Bell did not receive any cash in lieu of pension benefits in 2009.