The company provides pension benefits for senior employees, under the terms of the pension
contracts entered into with the senior employees, fixed sums are provided for now in order to
provide pension benefits to the individuals upon their retirement. The pension contracts allow
for an annual increase in respect of indexation over and above the initial contracted amount.
Although under section 28 of FRS 102 this pension arrangement is regarded as being a defined
benefit scheme, the directors consider that it does not bear any of the hallmarks of a defined
benefit scheme as the company's contributions are fixed until the point of retirement at which
point any further contributions of annual increases cease.