John Lewis Partnership plc annual report and accounts 2012

8 Directors’ emoluments (continued)

Following changes to pension legislation in April 2006, five directors opted to have part of their pension benefit provided on an unfunded basis, and the Partnership gave undertakings that these directors would have their pension made up to the same level as that provided by the senior pension scheme. In April 2010, the unfunded pension accrued for two directors was settled through a cash settlement. Two directors retained their unfunded pension accrued as at that date and provision has been made for this liability. During the year ended 29 January 2011, the unfunded pension accrued as at April 2010 in respect of the remaining two directors was contributed by the Partnership to a separate plan managed by a third party.

From April 2010, six directors no longer accrue pension benefits within the Partnership’s pension funds and instead either receive a pension supplement, being a percentage of salary, or contributions are made by the Partnership to the separate plan explained above. During the year ended 28 January 2012, the total pension supplement in lieu of future pension accrual and contributions made by the Partnership for all directors, was £2,042,000 (2011: £1,637,000 for the 10 months from April 2010), which includes £493,000 (2011: £400,000) in respect of the Chairman.

The annual pension entitlements from the age of 60, accrued at the end of the year for individual directors, excluding the Chairman, who served on the Board during any part of the year, and the prior year amounts for the same individuals, were as follows:

Table showing pension entitlements

2012 | 2011

£100,001 - £150,000 2 | 2

£150,001 - £200,000 1 | 2

£200,001 - £250,000 1 | –

The aggregate pension entitlement accrued at the end of the year for all directors, excluding the Chairman, who served on the Board during any part of the year, and the prior year amount for the same individuals, was £628,000 per annum (2011: £598,000 per annum). In addition, most of the directors are entitled to temporary pensions payable from age 60 until their State pension starts. The aggregate entitlement to temporary pensions was £22,000 per annum (2011: £21,000 per annum). For those directors where there was an increase, the transfer value of the aggregate increase in accrued entitlement above consumer price inflation, including temporary pensions, during the year was £2,000.

9 Employees

During the year the average number of employees of the group was as follows: 

Table showing average number of employees

Consolidated | 2012 | 2011
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
John Lewis 28,200 | 28,100
Waitrose 48,400 | 44,800
Other 2,100 | 1,900
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
78,700 | 74,800

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