Directors' pensions

The Group makes a contribution of 50% of base salary for Peter Long. During the year, contributions have been paid partly into a self-invested personal pension and, mindful of the HMRC lifetime allowance limit, partly as a non-pensionable cash payment (subject to tax and national insurance) equivalent to the Company pension contribution.

The Group makes contributions of 25% and 50% of base salary into a defined contribution pension scheme for the benefit of Paul Bowtell and William Waggott respectively.

In addition, William Waggott has deferred pension entitlements under the Defined Benefit section of the TUI Pension Scheme (UK). He ceased to be an active member of the Defined Benefit section on 3 September 2007 and, therefore, no increase in accrued benefit has occurred during the year.

The normal retirement date for the UK-based Executive Directors and senior executives is 65.

In the event of death in service, the Executive Directors’and senior executives’pension arrangements provide lump sums for the purchase of dependants’pensions of the greater of eight times salary or the value of the pension fund in addition to which a lump sum of four times salary is payable. Following the changes to the tax rules from April 2006, any dependant’s pension may be paid as an additional lump sum subject to HMRC limits.

Dr Volker Böttcher participates in separate pension arrangements in Germany at a cost of 25% of base salary.

Johan Lundgren participated in a separate pension arrangement in Sweden at a cost of 33% of base salary.

Christoph Mueller participated in separate pension arrangements in Germany at a cost of 35% of base salary until his employment ceased. The Company made an additional pension contribution of €46,813 in accordance with his contractual termination arrangements.

Pension contributions for Directors