Barclays 2009 Annual Report Download - page 244

242 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Notes to the accounts
For the year ended 31st December 2009
continued
30 Retirement benefit obligations continued
Funding
The most recent triennial funding valuation of the UK Retirement Fund (UKRF) was performed with an effective date of 30th September 2007. In compliance
with the Pensions Act 2004, the Bank and Trustee have agreed a scheme-specific funding target, statement of funding principles, and a schedule of
contributions. This agreement forms the basis of the Group’s commitment that the fund has sufficient assets to make payments to members in respect
of their accrued benefits as and when they fall due. This funding valuation uses a discount rate that reflects a prudent expectation of long-term future
investment returns from the current and assumed future investment strategy, and takes into account projected future salary increases when assessing
liabilities arising from accrued service.
As at 30th September 2007 the funding valuation showed a surplus of £0.2bn. The Scheme Actuary prepares an annual update of the funding position
as at 30th September. The latest annual update was carried out as at 30th September 2009 and showed a deficit of £4.8bn. The next triennial funding
valuation will take place with an effective date of 30th September 2010.
The Group has agreed funding contributions which, in aggregate, are no less than those which are sufficient to meet the Group’s share of the cost of
benefits accruing over each year. The Group has, in the recent past, chosen to make funding contributions in excess of this, more consistent with the
IAS 19 service cost; and in 2009 made an additional voluntary contribution of £150m.
Defined benefit contributions paid with respect to the UKRF were as follows:
£m
Contributions paid
2009 525
2008 336
2007 355
Excluding the UKRF, the Group is expected to pay contributions of approximately £1m to UK schemes and £59m to overseas schemes in 2010.
The Group is committed to making estimated contributions to UKRF in 2010 of £290m, with potential additional voluntary contributions dependent on the
scheme’s funding level.
31 Ordinary shares, share premium, and other equity
Ordinary shares and share premium
Number of Ordinary Share
shares shares premium Total
m£m£m£m
At 1st January 2009 8,372 2,093 4,045 6,138
Issued under the Incentive Share Option Plan a––––
Issued to staff under the Share Incentive Plan 19 53035
Issue of new ordinary shares 379 94 655 749
Conversion of Mandatorily Convertible Notes 2,642 661 3,221 3,882
At 31st December 2009 11,412 2,853 7,951 10,804
At 1st January 2008 6,601 1,651 56 1,707
Issued to staff under the Sharesave Share Option Scheme 3 1 13 14
Issued under the Incentive Share Option Plan a1–33
Issued to staff under the Share Incentive Plan a1–22
Issue of new ordinary shares 1,803 451 3,971 4,422
Repurchase of shares (37) (10) – (10)
At 31st December 2008 8,372 2,093 4,045 6,138
Note
aThe nominal value of share options issued during 2008 for the Incentive Share Option Plan
and Share Incentive Plan was less than £500,000 in each case.