BT 2014 Annual Report Download - page 156

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153
Financial statements
Financial statements
19. Retirement beneƬt plans continued
Movements in deƬned beneƬt plan assets and liabilities
The table below shows the movements on the plan assets and liabilities in the year and indicates where they are reected in the nancial statements.
Assets
£m
Liabilities
£m
Decit
£m
At 1 April 2012 38,541 (40,989) (2,448)
Current service cost – (225) (225)
Interest on pension decita1,858 (1,975) (117)
Administration expenses and PPF levy (38) – (38)
Included in the group income statement 1,820 (2,200) (380)
Return on plan assets above the amount included in the group income statementb2,689 – 2,689
Actuarial loss arising from changes in nancial assumptionsc– (6,116) (6,116)
Actuarial loss arising from changes in demographic assumptionsc– (2) (2)
Actuarial loss arising from experience adjustmentsd–(140) (140)
Included in the group statement of comprehensive income 2,689 (6,258) (3,569)
Regular contributions by employer 217 – 217
Decit contributions by employer 325 – 325
Included in the group cash Ʈow statement 542 –542
Contributions by employees 13 (13) –
Benets paid (2,044) 2,047 3
Foreign exchange 5(9) (4)
Other movements (2,026) 2,025 (1)
At 1 April 2013 41,566 (47,422) (5,856)
Current service cost – (272) (272)
Interest on pension decita1,710 (1,945) (235)
Settlements (63) 61 (2)
Administration expenses and PPF levy (40) – (40)
Included in the group income statement 1,607 (2,156) (549)
Return on plan assets below the amount included in the group income statementb(1,453) – (1,453)
Actuarial gain arising from changes in nancial assumptionsc– 580 580
Actuarial gain (loss) arising from changes in demographic assumptionsc–––
Actuarial loss arising from experience adjustmentsd–(306) (306)
Included in the group statement of comprehensive income (1,453) 274 (1,179)
Regular contributions by employer 228 – 228
Decit contributions by employer 325 – 325
Included in the group cash Ʈow statement 553 –553
Contributions by employees 12 (12) –
Benets paid (2,166) 2,166 –
Foreign exchange (6) 15 9
Other movements (2,160) 2,169 9
At 31 March 2014 40,113 (47,135) (7,022)
a Restated, see note 1.
b The total actual return on plan assets in 201314 was a gain of £257m (201213: £4,547m).
c The actuarial gain or loss arises from changes in the assumptions used to value the deƬned beneƬt liabilities at the end of the year compared with the assumptions used at the start of the year. This{includes
both Ƭnancial assumptions, which are based on market conditions at the year end, and demographic assumptions such as life expectancy.
d The actuarial loss or gain arising from experience adjustments on deƬned beneƬt liabilities represents the impact on the liabilities of diƪerences between actual experience during the year compared with
the assumptions made at the start of the year. Such diƪerences might arise, for example, from members choosing diƪerent beneƬt options at retirement, actual salary increases being diƪerent from those
assumed or actual beneƬt increases being higher than the long-term inƮation assumption.