Pensions
Defined benefit arrangements
Pensions are payable to Directors in pounds 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 pounds sterling and US dollars using the exchange rates for 2009 set out in the Directors’ emoluments in 2009 section. Except where otherwise stated, figures for John Patterson (a former Executive Director) reflect the period to 31 March 2009 when he retired as a Director.
| David Brennan £000 | John Patterson £000 | David Brennan $000 | John Patterson $000 |
|
|---|---|---|---|---|
| Defined benefit arrangements | ||||
| 1. Accrued pension at 1 January 2009 | 822 | 365 | 1,275 | 566 |
| 2. Increase in accrued pension during year as a result of inflation | - | - | - | - |
| 3. Adjustment to accrued pension as a result of salary increase relative to inflation | 77 | - | 119 | - |
| 4. Increase in accrued pension as a result of additional service | 16 | - | 25 | - |
| 5. Accrued pension at 31 December 2009 | 915 | 365 | 1,419 | 566 |
| 6. Employee contributions during 2009 | - | - | - | - |
| 7. Transfer value of accrued pension at 31 December 2008 | 11,249 | 8,288 | 17,441 | 12,850 |
| 8. Transfer value of accrued pension at 31 December 20091 | 12,850 | 9,124 | 19,922 | 14,146 |
| 9. Change in transfer value during the period less employee contributions | 1,600 | 836 | 2,481 | 1,296 |
| 10. Age at 31 December 2009 | 564⁄12 | 612⁄12 | 564⁄12 | 612⁄12 |
| 11. Pensionable service (years) at 31 December 2009 | 34 | 3310⁄12 | 34 | 3310⁄12 |
- 1
- The transfer value of John Patterson's accrued pension is calculated as at 6 April 2009, the date on which he retired from the AstraZeneca Pension Fund.
- John Patterson opted to take a commutation lump sum on 6 April 2009 in lieu of part of his pension entitlement. This lump sum was calculated and granted in accordance with the rules of the plan and amounted to £785,000 ($1,218,000). This reduced his pension entitlement after commutation to £303,000 per annum ($470,000).
- For John Patterson, transfer values are calculated on the market related basis used by the AstraZeneca Pension Fund, in accordance with current UK legislation.
- 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.
- For John Patterson, member contributions to the AstraZeneca Pension Fund of only a minimal amount for 2009 were 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 set out in the Defined benefit arrangements section above, David Brennan participates in a 401(k) plan. He also participates in AstraZeneca's Executive Deferred Compensation Plan (EDCP) which is operated as a supplemental non-qualified plan in respect of US employees should annual contributions exceed the limit applicable to contributions under the qualified 401(k) plan. Total employer matching contributions of $98,000 (£64,000) were made to his 401(k) plan and EDCP during 2009 (2008: $14,000 (£7,000)). David Brennan also made member contributions of $83,000 (£54,000) by way of salary sacrifice to the EDCP (2008: $nil). Additionally, in January 2009, David Brennan, along with other eligible participants in the EDCP, received an automatic one-off excess match employer contribution in respect of his eligible earnings for 2008 under the EDCP. This amounted to $110,000 (£70,000) relating to the 2008 plan year, $77,000 (£41,000) of which was disclosed in the 2008 Directors' Remuneration Report.
In addition to the defined benefit arrangements as described in the Defined benefit arrangements section above, John Patterson chose to receive a cash allowance in lieu of pension, which during 2009 amounted to £42,000 ($65,000) (2008: £84,000 ($157,000)).
As described in the UK Executive Directors' pension arrangements section, Simon Lowth chose to receive a cash allowance in lieu of pension, which during 2009 amounted to £132,000 ($205,000) (2008: £132,000 ($247,000)).
