BT 2015 Annual Report Download - page 174

172 BT Group plc
Annual Report 2015
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Background
he roup has both defined benefit and defined contribution retireent benefit plans. he roups ain plans are in the UK and the larest b
ebership is the  ension chee  which is a defined benefit plan that was closed to new entrants on 1 arch 001. fter that date
new entrants in the UK have been able to oin a defined contribution plan currentl the  etireent avin chee  a contract
based arrangement.
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 defined contribution plan is a pension arraneent under which the benefits are lined to contributions paid the perforance of each individuals
chosen investents and the for in which individuals choose to tae their benefits. ontributions are paid into an independentl adinistered
fund. he incoe stateent chare in respect of defined contribution plans represents the contribution paable b the roup based upon a fied
percentage of employees’ pay. The company has no exposure to investment and other experience risks.
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 defined benefit plan is a pension arraneent under which participatin ebers receive a pension benefit at retireent deterined b the plan
rules dependent on factors such as age, years of service and pensionable pay and is not dependent upon actual contributions made by the company
or ebers. he incoe stateent service cost in respect of defined benefit plans represents the increase in the defined benefit liabilit arisin fro
pension benefits earned b active ebers in the current period. he copan is eposed to investent and other eperience riss and a need to
ae additional contributions where it is estiated that the benefits will not be et fro reular contributions epected investent incoe
and assets held.
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he epense or incoe arisin fro all roup retireent benefit arraneents reconised in the roup incoe stateent is shown below.
Year ended 31 March
2015
£m
2014
£m
2013
£m
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Current service cost:
 defined benefit plans 254 272 225
 defined contribution plans 176 151 136
Past service credit a––
dinistration epenses and ension rotection und  lev42 40 38
7RWDORSHUDWLQJH[SHQVH 467 463 399
1HWLQWHUHVWH[SHQVHRQQHWSHQVLRQVGHƬFLWLQFOXGHGLQVSHFLƬFLWHPVQRWH 292 235 117
7RWDOUHFRJQLVHGLQWKHLQFRPHVWDWHPHQW 759 698 516
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eeasureents of the net defined benefit obliation are reconised in full in the roup stateent of coprehensive incoe in the ear in which
the arise. hese coprise the ipact on the defined benefit liabilit of chanes in deoraphic and financial assuptions copared with the start of
the ear actual eperience bein dierent to those assuptions and the return on plan assets above the aount included in the net pension
interest expense.
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he net pension obliation in respect of defined benefit plans reported in the roup balance sheet is set out below.
2015 2014
At 31 March
Assets
£m
Present value
of liabilities
£m
eficit
£m
Assets
£m
Present value
of liabilities
£m
eficit
£m
BTPS 43,386 01 9 39,939 9 0
Other plansa241 9  174  0
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dustents due to eect of asset ceilinb – –
Deferred tax asset 1,481 1,381
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t 1 arch 01 9 011  of contributions to defined contribution plans were outstandin and are included within trade and other
payables in the group balance sheet.