The Group’s largest pension scheme is the UK-based Tate & Lyle Group Pension Scheme (Group Scheme), a defined benefit arrangement. The Company closed the Group Scheme to new entrants from 1 April 2002, and, since then, new employees have been offered defined-contribution type pension provision through a Stakeholder Plan, which is an insurance-based contract. The Group Scheme closed to future final salary pension accrual from 6 April 2011 and the employee members have been offered membership of the existing Stakeholder plan.
Javed Ahmed is not a member of the Group Scheme for pension purposes and accordingly has accrued no pension benefits under it. He is paid a cash allowance calculated as 35% of base salary, from which he can make his own retirement savings arrangements although this may include the Company Stakeholder Plan. He has been provided with life assurance cover and has also participated in the Group Income Protection Scheme, which applies to all UK employees who are not otherwise covered for ill-health benefits under the Group Scheme.
Tim Lodge was a member of the Group Scheme until its closure and accrued pension at a rate of approximately 1/38th of pensionable earnings (basic salary only) for each year of service, subject to an employee contribution of 3% of pensionable salary. The benefit accrued includes a widow’s pension payable on his death and a lump sum on death in service. Once in payment, this part of his pension (and any subsequent widow’s pension) will be subject to increases in line with price inflation up to a maximum of 5%, with a minimum of 3%. From 6 April 2011, Tim Lodge is paid a cash allowance calculated as 25% of base salary, from which he can make his own retirement savings arrangements although this may include the Company Stakeholder Plan.
Details of the accrued pension benefits for Tim Lodge under the Group Scheme are given in the section. Details of amounts paid in lieu of pensions to Javed Ahmed are included in the table in the section, under pension allowance.