2016_Halma_ARA_160610_2

Remuneration Committee Report continued
Annual Remuneration
Report continued
Prior to drawing his pension, to the extent that an executive’s current salary exceeds the Plan salary cap, the Company compensates him at
an annual rate of 26% of the excess. In April 2006, Kevin Thompson chose to cease future service accrual in the Plan in return for the pension
supplement on his full salary. In April 2014, Andrew Williams chose to cease future service accrual in the Plan in return for the pension
supplement on his full salary. This change is, broadly, cost neutral.
Two Directors accrued benefits under the Company’s defined benefit pension plan during the year as follows.
Executive Director
Age at
2 April 2016
Years of
pensionable
service at
2 April 2016
Increase in
accrued
benefits
£000
Increase in
accrued benefits
net of inflation
£000
Accrued benefits
at 2 April 2016
£000
Andrew Williams 48 20 – – 61
Kevin Thompson 56 18 6 6 124
The accrued pension shown is that which would be paid annually on retirement at age 60 based on service to the end of the year.
Executive Director
Transfer value at
28 March 2015
£000
Transfer value at
2 April 2016
£000
Director
contribution in the
year
£000
Transfer value
increase/
(decrease) after
deducting Director
contribution
£000
Andrew Williams 1,149 1,250 – 101
Kevin Thompson 2,599 2,917 – 318
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 pension plan. The transfer values are Gilt-related and depend upon the relative standings of the Gilt market at the respective valuation
dates. The increase in transfer values in recent years is predominantly due to the significant reduction in the yields available on UK Gilts. Other
factors that have increased the transfer values are the impact of any additional service, revaluation in line with inflation and any real salary
increases as well as the anticipated ageing of the member. These values have been calculated on the basis of actuarial advice in accordance
with Actuarial Guidance Note GN11.
Adam Meyers is a member of the US 401k money purchase scheme. Company contributions paid in the year were US$18,156 (£12,024)
(2015: US$18,863 (£11,716)).
90 Halma plc Annual Report and Accounts 2016