It is the company’s policy to provide occupational retirement funding schemes on a money purchase basis wherever possible so as to minimise the company’s funding risk. Where feasible, the company applies this policy to its new acquisitions.
Following a thorough review of pension provision, as reported in its two previous reports, the committee had agreed that pension provision for the executive directors and the other executive committee members was inadequate when compared with other UK companies of similar size. The rate of contribution from the company as a percentage of salaries paid in sterling was, therefore, increased from 15.6% to a maximum of 30% from 1 April 2004, was disclosed in last year’s report and was subject to the shareholder vote on the directors’ remuneration report in 2004.
During the year the company made contributions for the executive directors to the SABMiller Executive Pension Scheme, an Approved Occupational Pension Scheme established as a self-administered money purchase scheme. Contributions were paid in respect of each executive director’s salary to the extent allowed by the earnings cap. Contributions in relation to salary above the earnings cap were credited in an unfunded corporate plan.
The value of contributions made to each executive director during the financial year is included in the summary of Emoluments Paid table.
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