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 2008 set out in the Directors’ Emoluments in 2008 section.
| David Brennan £000 |
John Patterson £000 |
David Brennan $000 |
John Patterson $000 |
|
|---|---|---|---|---|
| Defined Benefit Arrangements | ||||
| 1. Accrued pension at 1 January 2008 | 611 | 335 | 1,145 | 627 |
| 2. Increase in accrued pension during year as a result of inflation | – | 17 | – | 32 |
| 3. Adjustment to accrued pension as a result of salary increase relative to inflation | 57 | 7 | 107 | 13 |
| 4. Increase in accrued pension as a result of additional service | 12 | 6 | 23 | 11 |
| 5. Accrued pension at 31 December 2008 | 680 | 365 | 1,275 | 683 |
| 6. Employee contributions during 2008 | – | – | – | – |
| 7. Transfer value of accrued pension at 31 December 2007 | 5,325 | 6,833 | 9,973 | 12,797 |
| 8. Transfer value of accrued pension at 31 December 2008 | 9,313 | 8,288 | 17,441 | 15,521 |
| 9. Change in transfer value during the period less employee contributions | 3,988 | 1,455 | 7,468 | 2,724 |
| 10. Age at 31 December 2008 | 553⁄12 | 6011⁄12 | 553⁄12 | 6011⁄12 |
| 11. Pensionable service (years) as at 31 December 2008 | 33 | 337⁄12 | 33 | 337⁄12 |
Notes
- For John Patterson, 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 was reviewed during 2008 and this resulted in an increase in his transfer value of £993,000 ($1,860,000).
- 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 was modified in 2008.
- As described in the US Executive Directors’ pension arrangements section, David Brennan reached age 55 during 2008 at which point he became entitled to receive his benefits immediately on retirement without reduction for payment before normal pension age. This results in a recalculation of his transfer value, which is 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 £11,000 ($21,000), being 4% of pensionable salary for the first half of 2008 before he opted for cash in lieu, are paid through salary sacrifice, and as such no employee contributions are shown above or included within emoluments.
DEFINED CONTRIBUTION ARRANGEMENTS
In addition to the defined benefit arrangements above for David Brennan, an employer matching contribution of £49,000 ($91,000) was made to his 401(k) plan and associated non-qualified plan during 2008.
In addition to the defined benefit arrangements described above for John Patterson, as described in the UK Executive Directors’ pension arrangements section, he has chosen to receive a cash allowance in lieu of pension, which during the second half of 2008 amounted to £84,000 ($157,000).
Simon Lowth joined the Board on 5 November 2007. As described in the UK Executive Directors’ pension arrangements section, he has chosen to receive a cash allowance in lieu of pension, which during 2008 amounted to £132,000 ($247,000).
