RBS 2003 Annual Report Download - page 133

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Annual Report and Accounts 2003
Directors’ remuneration report
Directors’ pension arrangements
During the year, Mr Goodwin, Mr McLuskie, Mr Pell,
Mr Robertson and Mr Watt participated in The Royal Bank of
Scotland Group Pension Fund (‘the RBS Fund’). The RBS Fund
is a defined benefit fund which provides pensions and other
benefits within Inland Revenue limits.
The pension entitlements of Mr Goodwin, Mr Pell, Mr Robertson,
and Mr Watt within the RBS Fund are restricted by Inland
Revenue limits as set out in the Finance Act 1989. Additional
life assurance cover in excess of these limits is provided by
a separate arrangement. Arrangements have been made to
provide Mr Goodwin and Mr Pell with additional pension
benefits on a defined benefit basis outwith the RBS Fund. The
figures shown below include the accrual in respect of these
arrangements. Mr Watt is provided with additional pension
benefits on a defined contribution basis and contributions
made in the year are shown below.
Sir George Mathewson receives life insurance cover under an
individual arrangement. The non-executive directors do not
accrue pension benefits, other than Mr Robertson who
continued to accrue benefits in the RBS Fund after his
appointment as a non-executive director.
Mr Fish accrues pension benefits under a number of
arrangements in the USA. Defined benefits are built up under
the Citizens’ Qualified Plan, Excess Plan and Supplemental
Executive Retirement Arrangement. In addition, he is a
member of two defined contribution arrangements – a
Qualified 401(k) Plan and an Excess 401(k) Plan.
As in the 2002 Report and Accounts, disclosure of these
benefits has been made in accordance with the Stock
Exchange Listing Rules and the Combined Code and with the
Directors’ Remuneration Report Regulations 2002.
Transfer value
Additional Additional for the additional
pension pension Increase pension
earned earned in transfer earned
Accrued during the during the Transfer Transfer value during during the
entitlement at year ended year ended value as at value as at year ended year ended
Age at 31 December 31 December 31 December 31 December 31 December 31 December 31 December
31 December 2003 2003 2003* 2003 2002 2003 2003*
Defined benefit arrangements 2003 000 p.a. 000 p.a. 000 p.a. 000 000 000 000
Fred Goodwin 45 £325 £49 £44 £2,674 £1,900 £774 £365
Norman McLuskie 59 £194 £28 £25 £3,358 £2,624 £734 £433
Gordon Pell 53 £229 £17 £14 £2,930 £2,366 £564 £178
Iain Robertson 58 £28 £3 £2 £449 £353 £96 £39
Fred Watt 43 £5 £1 £1 £40 £23 £17 £12
Lawrence Fish 59 $883 $240 $240 $9,966 $6,648 $3,318 $2,713
* net of statutory revaluation applying to deferred pensions
Notes:
(1) There is a significant difference in the form of disclosure required by the Combined Code and the Directors’ Remuneration Report Regulations 2002. The former requires the
disclosure of the additional pension earned during the year and the transfer value equivalent to this pension based on stock market conditions at the end of the year. The latter
requires the disclosure of the difference between the transfer value at the start and end of the year and is therefore dependent on the change in stock market conditions over
the course of the year. The above disclosure has been made in accordance with the Combined Code and the Directors’ Remuneration Report Regulations 2002.
(2) The figures for Mr Pell include an additional pension secured by a transfer from his previous employer which increases in line with statutory revaluation, not salary inflation.
(3) The transfer values disclosed above do not represent a sum paid or payable to the individual director. Instead they represent a potential liability of the company /pension scheme.
Contributions and allowances paid in the year ended 31 December 2003 under defined contribution arrangements were:
2003 2002
000 000
Fred Watt £109 £93
Lawrence Fish $90 $90
Bob Scott, Chairman of the Remuneration Committee
18 February 2004