Pensions
Defined benefit arrangements
Pensions are payable to Directors in sterling, with the exception of David Brennan’s, whose pension is payable in US dollars. For ease of understanding, the table below has been presented in both sterling and US dollars using the exchange rates for 2007 set out in the Directors' emoluments in 2007 section.
| David Brennan £000 | John Patterson £000 | Jonathan Symonds £000 | David Brennan $000 | John Patterson $000 | Jonathan Symonds $000 | |
|---|---|---|---|---|---|---|
| Defined Benefit Arrangements 1. Accrued pension at 1 January 2007 |
484 | 313 | 278 | 969 | 626 | 556 |
| 2. Increase in accrued pension during year as a result of inflation | – | 12 | 6 | – | 24 | 12 |
| 3. Adjustment to accrued pension as a result of salary increase relative to inflation | 77 | (1) | 7 | 155 | (2) | 14 |
| 4. Increase in accrued pension as a result of additional service | 10 | 11 | 8 | 21 | 22 | 16 |
| 5. Accrued pension at 31 December 2007 | 571 | 335 | 299 | 1,145 | 670 | 598 |
| 6. Employee contributions during 2007 | – | – | 14 | – | – | 28 |
| 7. Transfer value of accrued pension at 31 December 2006 | 3,977 | 6,129 | 3,020 | 7,956 | 12,260 | 6,041 |
| 8. Transfer value of accrued pension at 31 December 2007 | 4,986 | 6,833 | 3,559 | 9,973 | 13,668 | 7,119 |
| 9. Change in transfer value during the period less employee contributions | 1,009 | 704 | 525 | 2,017 | 1,408 | 1,050 |
| 10. Age at 31 December 2007 | 543⁄12 | 5911⁄12 | 485⁄12 | 543⁄12 | 5911⁄12 | 485⁄12 |
| 11. Pensionable service (years) as at 31 December 2007 | 32 | 327⁄12 | 2611⁄12 | 32 | 327⁄12 | 2611⁄12 |
Notes
- For John Patterson and Jonathan Symonds, transfer values are calculated on the market related basis used by the AstraZeneca UK Pension Plan, in line with the GN11 guidance note published by the Board for Actuarial Standards in the UK. The basis is to be reviewed during early 2008.
- For David Brennan, transfer values are calculated to be consistent with the value of the lump sum distribution equivalent to his deferred accrued pension annuity. The minimum permissible value of such a lump sum distribution will be modified in 2008.
- As described in the section Pension arrangements, David Brennan will reach age 55 during 2008 at which point he will become entitled to receive his benefits immediately on retirement without reduction for payment before normal pension age. This will result in a recalculation of his transfer value, which will be reflected in this table for 2008. The figures shown above reflect David Brennan’s participation in the AstraZeneca US Defined Benefit Pension Plan (qualified and non-qualified pension plans).
- For John Patterson, member contributions of £20,000 ($40,000), being 4% of pensionable salary, are paid through salary sacrifice, and as such no employee contributions are shown above or included within emoluments.
- Jonathan Symonds left the Board on 31 July 2007. The values shown in the table are as at 31 July 2007, or the period ending on that date, as appropriate. As described in the section Pension arrangements, Jonathan Symonds benefited from a pension promise equivalent to membership of the AstraZeneca UK Defined Benefit Pension Plan, delivered through a combination of savings vehicles and an unfunded top-up benefit to deliver the balance. Following his departure, the Company made a cash payment amounting to £3.27 million. The payment extinguishes all pension liabilities the Company has in respect of Jonathan Symonds.
Defined contribution arrangements
In addition to the defined benefit arrangements above for David Brennan, an employer matching contribution of £5,000 ($10,000) was made to his 401(k) plan during 2007.
Simon Lowth joined the Board on 5 November 2007. As described in the section Pension arrangements, he has chosen to receive the cash allowance in lieu of pension, which during 2007 amounted to £22,000 ($44,000).
