Corporate Governance

	Executive Directors’ annual pension accrued assuming retirement at contractual date(a)

						Pension
		Age as		At 31st		accrued	At 31st	Other
		at 31st	Years	December	Increase for	during	December	contributions
		December	of service	1999 (b)	inflation	2000(c)	2000	made in 2000
	Executive
	MW Barrett (d)	56	1	–	–	–	–	425
	CJ Lendrum (a)	53	31	156	2	31	189	–
	JM Stewart (e)	51	23	216	–	10	226	–
	JS Varley (a)	44	18	103	1	19	123	–
	Former Directors
	DP Allvey (f)	55	1	–	–	–	–	142

	Notes
	(a) The Group’s main pension scheme is a non-contributory scheme and provides that, in the case of death before retirement, a capital sum of up to four times salary is payable, together with a spouse’s pension of approximately 50% of the member’s prospective pension at retirement. For death in retirement, a spouse’s pension of 50% of the member’s pre-commutation pension is payable. If a member, granted a deferred pension, dies before their pension becomes payable, their widow/widower will immediately be paid a pension of 50% of their deferred pension. In all circumstances, children’s allowances are payable, usually up to the age of 18. Enhanced benefits are payable if a member is unable to continue to work as a result of serious ill health. Mr Lendrum and Mr Varley are members of the main pension scheme and are entitled to enhanced benefits that will give them pensions of two-thirds of their pensionable salary at age 60. (b) Or on appointment, if later. (c) Pension accrued during the year represents the increase in accrued pension (excluding inflation at the prescribed rate) which occurred either during the entire year, or during that part of the year for which the executive was also a Director. All pensions are reviewed annually, with a guaranteed increase in line with retail price inflation, up to a maximum of 5%. (d) Mr Barrett is not a member of the Group’s main pension scheme. A notional fund was accrued on his behalf outside the pension scheme. In the event of Mr Barrett’s death before retirement a capital sum of up to four times salary would be payable. (e) Mr Stewart joined the Board on 25th October 2000. He is a member of the Woolwich Pension Fund and entitled to a pension of two-thirds of Pensionable salary at age 60 with minimum annual increases of 3% and no State Pension offset. Otherwise the Woolwich Pension Fund is similar to the Group’s main pension scheme except that employees contribute at the rate of 3% of pensionable salary. (f ) Mr Allvey was not a member of the Group’s main pension scheme. A notional fund was accrued on his behalf outside the pension scheme. In the event of Mr Allvey’s death before retirement a capital sum of up to four times salary would have been payable.